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AbC Certified Vol 2 Issue no. 38-39 Weekly
karachi, tue October 07 - Mon October 20, 2014
Regd. no, MC-1381
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WARnIng AgAInSt pROtOCOl
FBR ChairmanTariq Bajwa directs security personnel and field formations to take orders only from FBR protocol officers and avoid any instruction from other protocol officers. | SEE pAgE 03 | COllECtIng RS230 bIllIOn
FBR Spokesperson Shahid Hussian Asad said the Board collected Rs.230b revenue in September as compared to Rs.202 billion in the same period of last fiscal year depicting a 14% percent growth. SEE pAgE 02 | CHASIng HugE tARgEt
FBR suspends performance allowance of 62 officers NON-FILING OF TAX RETURNS
LAHORE
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Multan Customs Collector Sarfraz AhmadWarraich said they are trying to chase the huge target of almost Rs 42 billion in the fiscal year 2014-15 and so far collected Rs 10.26 billion in September. | SEE pAgE 11 | fACIlItAtIng tRADE
Air Freight Unit is working on three main areas including trade facilitation, law implementation and revenue collection, says ADC Tahir Qureshi. | SEE pAgE 04 |
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FBR has suspended performance allowance of 62 ofUicials for three months after their failure to Uile income tax returns for 2013. They include 25 Customs, 26 Inland Revenue, six ex-cadre and Uive Audit and Accounts Department ofUicials. According to available documents, the FBR issued a notiUication on 26 September regarding the discontinuation of the performance allowance for a period of three months or until the Uiling of income tax returns. The FBR had issued several reminders to the ofUicials to submit their returns on 26 May and 12 June. After a long delay, the FBR has taken action against them and discontinued their performance allowance. The 26 Inland Revenue ofUicials are: Regional Tax OfUice (RTO) III Karachi Commissioner Sultan Wazir Khan, RTO Abbottabad Commissioner (OPS) Asif Haider Orkazai, RTO Karachi Additional Commissioner Hassan Sardar, Directorate of Internal Audit (Inland Revenue) Lahore Additional Director Laila Ghafoor, RTO Karachi
Additional Commissioner Imtiaz Ali Solangi, RTO-II Lahore Additional Commissioner Fiza Batool, Directorate of Internal Audit (Inland Revenue) Karachi Deputy Director Abdul Hameed Abro, Large Taxpayer Unit (LTU) Karachi Deputy Commissioner Zafar RaUiq Siddiqui, RTO Hydearbad Deputy Commissioner Dr. Sajid Hussain Arain, RTO Lahore Deputy Commissioner Noreen Ashraf, LTU Karachi Deputy Commissioner Abdul Hameed Shaikh, RTO Abbottabad Deputy Commissioner Fazal-e-Subhan, RTO Bahawalpur Additional Commissioner (OPS) Ashfaq Ahmad, FBR (Hq) Islamabad Second Secretary Said Iqbal, RTO Gujranwala Deputy Commissioner Muhammad Babar Chohan, Directorate of Training and Research (IR) Karachi Deputy Director Saniya Farukh, RTO II Karachi Deputy Commissioner Farzana Altaf, FBR (Hq) Islamabad Second Secretary Dr.Muhammad Khurram, LTU Karachi Additional Commissioner Abdul Hafeez, RTO Lahore Deputy Commissioner Muhammad Faisal Chaudhar, RTO-II Lahore Deputy Commissioner Muhammad Nazir Ahmad Rizvi, RTO-III Karachi Deputy Commissioner Tayyab Mehmood, RTO-II Lahore Deputy Commissioner Haroon Islam, RTO Lahore Assistant Commissioner Manan Younas, RTO Quetta Assistant Commissioner Shamsullah Khan Panezai and
25 26 CuStOMS,
IR, 6 Ex-CADRE AnD 5 AuDIt AnD ACCOuntS DEpt ARE AMOng 62 OffICIAlS
RTO-II Lahore Assistant Commissioner Ch. Abdul Ghafoor. The 25 Customs ofUicials are: FBR (Hq) Islamabad Member Khalid Mahmood, Directorate General of Customs Valuation Karachi Collector Abdul Rashid Sheikh, Collectorate of Customs (Adjudication-II) Karachi Collector Dr Ahmad Mujtaba Memon, FBR (Hq) Islamabad Secretary FBR Sanaullah Abro, Model Customs Collectorate of Appraisement Lahore Additional Collector Rabab Sikandar, Model Customs Collectorate Peshawar Additional Collector Malik Kamran Azam Khan, Model Customs Collectorate Gilgit-Baltistan Additional Collector Sadiqullah Khan, Model Customs Collectorate Peshawar Additional Collector Rashid Habib Khan, FBR (Hq) Islamabad, Second Secretary Abu Nasr Shuja Akram, FBR (Hq) Islamabad Second Secretary Syed Imran Sajjad Bokhari, FBR (Hq) Islamabad Second Secretary Dr Ghulam Mustafa, Model Customs Collectorate of Appraisement (West) Karachi Deputy Collector Yousaf Ali Khan Magsi, Model Customs Collectorate of Appraisement Lahore Deputy Collector Dr. Muhammad Aitzaz Khan, Directorate General of Intelligence and Investigation FBR Islamabad See page 04
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OCTOBER 07 - OCTOBER 20, 2014
Anf gets convictions for 306 drug traffickers in 8 months
ISLAMABAD: Anti Narcotics Force (ANF) could get convictions for total 306 convicts for their involvement in drugs trafficking in first eight months of the current year. The Supreme Court of Pakistan and High Courts disposed off total 314 appeals related to the drug trafficking in first eight months of the current year. The available documents reveal that only one alleged drug trafficker was awarded with death penalty while remaining 305 were awarded with other punishments.
LAHORE
M HAYAt
www.customstoday.com he Customs Central Region has attained growth of eight percent in first quarter of financial year 2014-15 as compared to the first quarter of corresponding year 2013-14. The Customs Central Region collected customs duty of Rs 3,316 million in Q1 in 2014-15 against the Rs 3,080 million during the same period in the corresponding FY 2013-14. The Collectorate of Faisalabad collected Rs 234 million against Rs 183 million last the year; up 28 percent while the Collectorate achieved 1 percent of the current year target.The Collectorate of Multan collected Rs 706 million against Rs 883 million, down 20 compared to the last financial year.The Collectorate of Preventive Lahore collected Rs 675 million against Rs 452 million in last year's first quarter.The Collectorate not only achieved growth of 49 percent as compared to the Q1 of the last year but also exceeded the target by 18 percent. It is perhaps due to the strategies the new Collector of Customs Muqaram Jah had adopted and brought about many changes in the Collectorate at every level. The Collectorate of Customs Appraisement Lahore collected Rs 1,700 million and attained a growth of nine percent against the corresponding period last FY. However, the Collectorate failed to hit the target by 14 percent in the Q1 of 2014-15.
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pakistanCustomsto launchconsignmenttrackingApp ort users, including importers, would soon be able to track their consignments and also enjoy a range of other services via mobile phone application. Talking to CustomsToday, Directorate General of Reforms and Automation Director Abdul MajidYousfani disclosed that the software would help the importers to remain informed about the status of their consignments at whatever stage they are – be it at examination, clearance or release.The App would be the first such software application for cell phone users across South Asia. The app would be developed completely by Pakistan Revenue Automation (Pvt.) Limited (PRAL) as per the design specifications provided by the directorate, he added. Asked about the time frame of the App launch, Yousfani said that the development work on the app would begin in the next phase once WeBOC is rolled out at all commercial airports of country this month. The installation of WeBOC would enhance the automated goods declaration reach to 90 percent by December, he said. —CT Report
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fbR collects Rs230 billion revenue in September, shows 14pc growth port Qasim falls short of target by Rs 2.42 billion ISLAMABAD
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BR has collected Rs.549 billion till September 30, 2014 in the Uirst quarter of current Uiscal year 2014-15 against the collections of Rs.481 billion taxes in the same period of last Uiscal showing an increase of 14 percent, a senior ofUicial of the board said. Member Inland Revenues and Spokesman of the FBR, Shahid Hussian Asad said that the FBR collected Rs.230 billion revenues in the months of September 2014, as compared to Rs.202 billion collected in the same period of last Uiscal year depicting a 14% percent growth in the tax collection of the country. Much productive tax collection with over 14 percent increase in the so far period of September as compared to the previous year", said Member Inland Revenue and Spokesman. He said Federal Board of Revenue (FBR) has collected Rs.549 billion till September 30, 2014 in Uirst quarter of current Uiscal year,which Rs.481 billions 14 percent higher than the tax collected in the same period of the previous Fiscal year. He said that despite challenges FBR's collection was on track.He said that sit-ins and agitations would cause huge loss to the national economy and also put a negative impact on the local business across the country. Shahid Hussain said that after the sit-ins by both political parties the local stock exchange witnessed bearish
— Exclusive Customs Today photo
Customs Central Region collects Rs 3,316 million in Q1
FBR collected Rs.230b revenue in September 2014, as compared to Rs.202b collected in the same period of last fiscal year trend in the current week, which had a negative impact on the economy. He said that FBR is committed to broadening the tax net for strengthening the national economy and to
enhance tax to GDP ratio in the country in line with the policy of the government. He hoped that the business community would beneUit from these facilities extended by the government
Collector Najeeb re-assigns tasks to 7 DCs KARACHI
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he Collector of MCC-Appraisement (East) Najeeb-urRehman Abbasi has re-assigned and re-distributed the works among seven deputy collectors and three assistant collectors. Rehmatullah Vistro (Deputy Collector), an ofUicer of Grade-18 was reassigned the new responsibilities of Headquarters, external audit, GroupII and FTO. Previously he had performed his duties in WeBOC Group-II, FTA Cell, MCD and PCT Committee. Arshad Khan (Deputy Collector) was re-allocated the new tasks of NLCCT, Railways dry ports, TPX Law and Pak Shaheen Container Terminal. Previously, he had looked after the duties in PICT. Rizwan Mehmood (Deputy Collector) was assigned tasks in Group-VI and R&D while he had performed duties in WeBOC Group-VI, Headquarters-I and warehousing previously. Yasir
Wahab Kalwar (Deputy Collector) was assigned new tasks to look after Group-VI and Group-VII, DTRE, Adjudication (AC and DC’s jurisdiction) and Uinalization of provisional assessment. Kamran Ali Rana (Deputy Collector) was reassigned the works to look after the responsibilities in Coordination and PICT, East Wharf, NLCCI, Pak Shaheen, TPX and Timber Pond, previously he had performed duties in Group-IV, Law and FTO. Rizwan Bashir (Deputy Collector) was reassigned the new assignments at PICT; previously he had performed duties at Inter Port Movement. Muhammad Qasim Khokhar (Deputy Collector) was reassigned new tasks including Group-II, MIS (Admin), Change Management, Laboratory, MCD, Warehousing & PCT Committee; previously he had disbursed his duties at East Wharf. Zakir Muhammad (Deputy Collector) was re-assigned new tasks at PICT, previously he had looked after the affairs at NLCCT, Railway dry port, TPX, Coordination
and Auction. Muhammad Ibrahim (Deputy Collector) was re-assigned new tasks in User ID and Facilitation, Refund, Pre-refund Audit and DTRE while previously he had disbursed his duties at WeBOC GroupIII, Adjudication (DC level). Attaullah Shabbir (Deputy Collector) was assigned new tasks at NLCCT, Railway dry port and TPX. Muhammad Faisal (Assistant Collector) was re-assigned duties at One Customs Assessment, MIS (One Custom) previously he had preformed duties at Group-I, Change Management and Securities. Asim Rehman, Assistant Collector was re-assigned duties in Group-V, Laboratory, Warehousing, MCD and Group-VIII Chapter-87 (Vehicles), previously he had performed his duties at WeBOC Group-V, Transit and Transshipment and Admin-II. Zaheer Abbas, Assistant Collector was re-assigned duties in Group-I, PRV Cell, Securities, Recovery and FTA Cell, previously he had performed his duties in User ID and Facilitation Center.
and businessmen would Uile their tax returns for the economic prosperity of the country. Meanwhile, the Model Customs Collectorate of Port Muhammad Bin Qasim has slightly fallen short of its set revenue target in the Uirst quarter – July, August and September – of the Uiscal year 2014-15. According to details, the Federal Board of Revenue (FBR) has set a revenue target of Rs 69.5 billion for MCCPort Muhammad Bin Qasim in the Uirst quarter of Uiscal year 2014-15. However; the collectorate has managed to collect Rs 67 billion with a slight difference of Rs 2.42 billion. According to the given statistics, the collectorate has collected Rs 5.6 billion against a set target of Rs 4.36 billion customs duty in September. The collectorate has collected Rs 16 billion revenue in share of sales tax in September against a set target of Rs 14.9 billion. The Port Qasim collectorate has collected revenue of Rs 286.29 million in share of federal excise duty (FED) in September against a set target of Rs 194.48 million. The collectorate has managed to collect Rs 3.3 billion income tax against a set target of Rs 2.6 billion. Similarly, the collectorate has collected Rs 5.1 billion customs duty against a target of Rs 4.7 billion in August. The collectorate has collected Rs 16.97 billion sales tax in August against a set target of Rs 1.58 billion. The MCC-Port Qasim has collected Rs 279.13 million FED in August against a target of Rs 186.17 million. The collectorate has collected Rs 3.25 billion income tax against a set target of Rs 2.8 billion.
fbR releases Rs1.7b refunds to textile millers BR RegionalTax Office-I has released Rs 1.7 billion refunds to the textile sector in connection with a commitment in the budget 2014-15. Sources said that the RTO had release Rs 600 million to the textile sector by Sep 23 and the remaining 1.1 billion were released in the last week of September. Sources said Chief Commissioner (CC) Waqar Ahmad had urged the commissioner Inland Revenue (CIR) to expedite collection ofWHT in order to recover Rs 1.7 billion shortfall.The CC urged the commissioner Inland Revenue to evolve strategy to recover the shortfall to meet the refund targets.The CC asked the CIR to give attention toWHT from LESCO, steel melters, tax on residential bills and tax on bank withdrawals. On the other hand, textile millers have complained that they have not received the refunds so far. —CT Report
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Customs shuffles additional collectors faisalabad, Multan
MULTAN: Customs has transferred Additional Collector Faisalabad Customs Ghulam Mustafa to Model Customs Collectorate Multan. As per details, Additional Collector of Customs Multan Asif Abbas will now serve as additional collectorate Faisalabad, on the post vacant due to transfer of Ghulam Mustafa. Asif Abbas served as an additional collector in the customs collectorate Multan for almost two years. During his tenure, the Multan customs has accomplished many goals.
Rs116.23 million tax evasion: Another ONO issued against PTCL KARACHI
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bajwa warns against undue protocol to relatives of fbR officials ISLAMABAD
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BR Chairman Tariq Bajwa has directed the security personnel and Uield formations to take orders only from FBR protocol ofUicers and barred them from following any order or instruction from other protocol ofUicers. The FBR chairman has taken the step after complaints of wrong use of powers against rules and regulations by some FBR ofUicers. Sources told Customs Today that after the warning of FBR chairman, Uield formation ofUicers are now cautious of following orders of any ofUicers other than the FBR chairman. "The FBR chairman has also directed the Uield formations that they must let him know before taking any policy step or giving protocol, and instructed them to act as per the instructions of the chairman’s ofUice only," they added. It is important to mention that the FBR chairman, while taking action on complaints of illegal use of power by the FBR ofUicers, has directed the ofUicers that they should not provide protocol to relatives of ofUicers at airports and other places. The sitting arrangement of the reviewing ofUicers is also to be made possible with the installed system. Meanwhile, FBR is continuing deliberations on formulation of new policy guidelines for the allotments of houses to ofUicers, it was learnt Friday. Issues of out of turn allotments, abandoning of waiting list as well as inclusion of ofUicers in the entitlement list are likely to be sorted out in the new policy guidelines.
— Exclusive Customs Today photo
nother Order-in Original (ONO) against M/s Pakistan Telecommunication Company Ltd (PTCL), its clearing agent M/s Eastern Freighter Services and M/s Huawei Technologies Pakistan (Pvt) Ltd in alleged tax evasion to the tune of Rs116,228,110 on import of telecommunication equipments through mis-declaration and concealment of actual CFR/import value of goods. The Collector of the Collectorate of Customs Adjudication-I has also imposed a penalty of Rs 1 million each on M/s PakistanTelecommunication Company Ltd (PTCL) and M/s HuaweiTechnologies Pakistan (Pvt) Ltd while a penalty of Rs 200000 has also been imposed on M/s Eastern Freighter Service under Clause 14 of the Section 156(I) of the Customs Act, 1969. As per the details, the case was constituted by the Directorate General of Intelligence and Investigation-FBR, Karachi on 28-03-2014 and after three hearings conducted by the Collector of Customs Adjudication-I on 10-04-2014, 25-04-2014 and 21-08-2014, the ONO has been issued to the respondents. The brief facts of the case are reported by the Directorate General of Customs I&IFBR, Karachi vide its Contravention Report No. Appg-573/DCI/PTCL/2014 that a credible information was received in the Directorate General, I&I-FBR Karachi that M/s PTCL in collusion with their foreign supplier M/s Huawei International (Pvt) Ltd, Singapore, their local contractor M/s HuaweiTechnologies Pakistan (Pvt) Ltd and their clearing agent M/s Eastern Freighter Services were involved in huge tax evasion.
FBR launches tax filing software‘IRIS’
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he Federal Board of Revenue has launched new software 'IRIS' to keep record of taxpayers and to facilitate them in filing their tax returns. In the first step FBR has launched first module of the software 'Return' to facilitate the taxpayers, other 8 modules will be launched during current year. The other eight modules of the software Registration, Declaration, Audit, Assessment, Refund, Recovery and Appeal will be launched in third and fourth phase after the launching of second module this month.
The technical officers of FBR IT and FIAT Wing have briefed all chambers of Pakistan and tax bars on the uses of software via presentations. Sources told Customs Today that tax bars has shown some reservations on the launching of software as it enabled local and overseas Pakistanis to file their tax returns from their home or office. FBR IT Secretary Zainul Abideen, while talking exclusively to Customs Today, said that the software was prepared by FBR IT experts without any for-
eign assistance to bring transparency and equality in tax system. He said that even the FBR chairman could assess the performance of FBR officials through the software, aimed to facilitate the taxpayers. "We are planning to launch all modules in current year," he said, adding that software was designed on the basis of less choking and acute accuracy. He said that every taxpayer will own his unique profile and password, and tax laws will also be added to website page to facilitate new taxpayers. —CT Report
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NATIONAL
OCTOBER 07 - OCTOBER 20, 2014
british pakistani held for attempting to smuggle 2kg heroin
ISLAMABAD: Pakistan Customs seized total 2kg heroin from UK bound passenger at Benazir International Airport. The passenger namely Abid Hussain s/o Iqbal Hussain was caught from flight no Pk-791 going to Brimingham. The heroin was tactfully concealed in suitcase and his jacket. The passenger is Pakistani origin British national from Noshehra District.
AFU forwards list of affectees to get compensation: ADC tahir T
fbR to revise transfers, postings mechanism he Federal Board of Revenue (FBR) is working to revise a proper system of transfers and postings which could be made with the consultation of the Human Resource Management Wing of FBR. Sources said that the proposal of establishing the mechanism was given in the board-in-council meeting.“After implementing the proposal, transfer and posting of any FBR official will be made after taking opinion from the Human Resource Management Wing about the related official’s biodata, including qualification and experience through administration wing,” sources said, adding that a special unit would be set up for this purpose, however, the administration wing would remain the final authority for issuing transfer/posting orders. —CT Report
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from page 01 eputy Director, Sadiya Noori, Model Customs Collectorate GilgitBaltistan Deputy CollectorTahir Habib Cheema, Model Customs Collectorate Hyderabad Deputy Collector Tasleem Akhtar, Model Customs Collectorate Peshawar Deputy Collector Ubaidullah, Directorate ofTransitTrade Quetta Assistant Director Abdul Rasheed, Model Customs Collectorate Islamabad Assistant CollectorWajeeh Jamal, Model Customs Collectorate of Appraisement (West) Karachi Assistant Collector Rafiullah Bangash, Directorate General of CustomsValuation Karachi Assistant Director Muhammad Shahzad Khan, Model Customs Collectorate of Port Muhammad Bin Qasim Karachi Assistant Collector Sajid Ali Baloch, Model Customs Collectorate Gwadar Assistant Collector Wahaj Saghir, Directorate ofTransitTrade Quetta Assistant Director SyedTalha Salman and Model Customs Collectorate of Preventive Karachi Assistant Collector Farhat H Khan. The six ex-cadre officials are: Office of the Director (MIS) (IR) Islamabad Programmer Ghulam Qadir Chand, RTO-III Karachi Deputy Commissioner Mamoon Moazam Khuhawar, MCC Export Karachi Assistant Chemical Examiner Shamsuz Zaman, Office of the Director (MIS) (IR) Islamabad Data Processing Officer Syed Shabih Haider Rizvi, FBR (Hq) Islamabad Private Secretary Ahmad Saeed, RTO Peshawar Programmer Nadeem Khan Afridi.While the five officials of Audit and Accounts are: LTU Lahore Accounts Officer Muhammad Abbas, MCC Preventive Karachi Chief Accounts Officer Qadeer Ahmad, PMEC Islamabad Chief Accounts Officer Zar Khan, FBR (Hq) Islamabad Second Secretary Muhammad Arshad and RTO-III Karachi Deputy Commissioner Mushtaq AlinTunio.
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Court grants bail to 3 TCS officials
— Exclusive Customs Today photo
fbR suspends
he Air Freight Unit (AFU) of Model Customs Collectorate (MCC) of Preventive is working on three main areas including trade facilitation, law implementation and revenue collection. This was stated by Additional Collector-AFU, Jinnah International Airport-Karachi, Dr Tahir Qureshi while talking to Customs Today exclusively in his ofUice. Dr Qureshi said that the Pakistan Customs was ensuring relief to trade bodies while remaining within the parameters of law and justice. Responding to a query, ADC Dr Tahir Qureshi said that 95 percent situation after the airport attack on June 8 has been normalized and Gerry Dnata with the efforts of authorities concerned of Pakistan Customs has got extra space near Hajj Terminal at JIAP while Pakistan Customs has also provided an extra space to Gerry Dnata, whose shed was completely destroyed in airport attack. Commenting on airport security, Dr Tahir conUirmed that the Airport Security Force (ASF) has beefed up its strength and taken extra security measures in and around airport to prevent any untoward incident in the future. To a query, the Additional Collector said that the FBR through Air Freight Unit (AFU) has forwarded the list of affectees, whose goods/consignments were set ablaze completely in airport attack, adding that the AFU has updated the list by the passage of time and
sent it to the FBR Headquarters. “As soon as the government announces compensation to the affectees of airport attack, the FBR will release it to the affected parties without any delay”, he asserted. On the occasion, Additional Collector, JIAP urged the importers and trade associations to take up the said matter before the federal government. Responding to a query, Dr Qureshi said that the clearance of consignments was continued
pecial Customs Court Judge Chaudhary Mumtaz has granted bail to threeTCS officials and ordered their release, as they were on judicial remand in a smuggling case. As per details, three employees of TCS Kamran, Zohaib and Zeshan were produced in front of special Customs Court Judge Chaudhry Mumtaz, who ordered their release after an application of bail from their lawyers. Sources told Customs Today that customs officials have not objected their release because they have completed investigations. On the other hand, the protective bail of former TCS regional manager Ghazanfar Gul will be expired on October 13, on which he has to present himself before the court if he wanted any extension in his bail. —CT Report
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through Immediate Clearance Group (ICG) of Pakistan Customs at Air Freight Unit (AFU) since the very Uirst day of that incident. “The authorities concerned of Pakistan Customs had held individual meetings with all the stakeholders including importers, Customs agents, shed authorities and others at regular intervals soon after the incident took place and such meetings were still continued for assuring cooperation and coordination among stakeholders”, he added.
pharma clearance case: fate of 76 Customs officials hangs in balance KARACHI
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he fate of the case linked with the clearance of pharmaceutical raw material still hangs in the balance, as the Ministry of Commerce (MoC) has yet to respond against the letter written by the Pakistan Customs authorities in order to settle the issue created between Federal Drug Regulatory Authority (DRA) and Pakistan Customs Services (PCS). It is pertinent to mention here that the case was unearthed in August-2014 in which
the Federal Drug Department (FDD) alleged that the officials of Pakistan Customs cleared the consignments of pharmaceutical raw material without prior permission of the FDD and referred the case to Federal Investigation Agency (FIA), Lahore for investigation into the matter. Later on, the FIA involved 76-Customs officials into investigation and also issued show-cause notices against them. In the following case, the Drug Regulatory Authority (DRA) was of the view that the Pakistan Customs officials were involved in the clearance of pharmaceutical raw material illegally, as the importer M/s Intervac (Pvt) Lim-
fIA involved 76-Customs officials into investigation and issued show-cause notices against them
ited, Lahore did not have the clearance certificate, which is mandatory under Rule 15 of the Drug (Import & Export) Rules, 1976. However, the authorities concerned of Pakistan Customs had the view point that in terms of Serial No.7, Part-II (Procedural Requirements) to Appendix-B read with paragraph 5(B)(i) of the Import Policy Order (IPO), 2013 in vogue, the import of pharmaceutical (allopathic) raw material of pharmaceutical grade in the form of unprocessed ingredients is allowed, inter-alia, to pharmaceutical industries holding valid pharmaceutical manufacturing.
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SPECIALREPORT
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Commerce Ministry should come up with a proactive plan to enhance exports by giving MuHAMMAD ARSHAD trade, especially an export target to comwww.customstoday.com mercial attaché appointed in various countries and those failing to meet export target should be summoned back immediately. He suggested that the Foreign Affairs enate’s Standing Committee on Ministry should also appoint ambassadors Ports and Shipping Chairman Sar- and high commissioners keeping their efUidar Fateh Muhammad Hassani has ciency in convincing investors and traders asked the government to provide special in- and their economic and business backcentives to tax collectors and other staff to ground in view and on political basis. He curb corruption from the income tax, sales proposed special incentives for exporters in tax, customs, excise and other departments different forms to encourage them to bridge concerned. the gap between imports and exports. "Currently, corruption maroons the perHe termed a lack of coordination formance of these departments and a for- among the provincial and federal governmer chairman FBR has on the record pin- ments as the biggest hurdle in economic pointed corruption of Rs 500 billion. progress of the country. Different minPossibilities and mechanism for broaden- istries as well as various wings and deing of tax net exists but there is matter of partments of any speciUic ministry do not implementation of policies and strategies take each other onboard on the preparaso a monitoring cell must be set up to mon- tion of plans, projects and strategies on itor and examine the implementation of same subject, he said. policies," Hassani observed while giving an "The 18th constitutional amendment exclusive interview to Customs Today. has authorised the provincial governments He said, “Everyone in the country is will- to borrow loans for speciUic development ing to pay tax therefore government should projects, but provincial governments must provide incentives to tax payers which will take concerned organizations of the fednot only double the volume of revenue col- eral government into conUidence while borlection but also result in cordial relationship rowing foreign loans" Hassani observed, between tax payers and tax collecting adding, "Even today the Economic Affairs agents." Coming to foreign trade issue, the Division (EAD) did not have exact volcommittee chairman said, “A huge ume of foreign loans borrowed by the gap between exports and improvinces which was a major problem ports is also a setback to in division of future development our economy. Exports plans and Uixation of amount of are only $26 billion funds for them." while volume of "Similarly, it is not a imports is $44 matter of policies billion. With this but their implegap it is imposmentation which sible for any is not only hamCommerce economy to pering ecoMinistry should Ulourish.” He n o m i c added the progress, but come up with a ISLAMABAD
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proactive plan to enhance exports
Profile Sardar Fateh Muhammad Hassani is a Pakistan People's Party lawmaker. He was elected as a senator from Balochistan. He will hold the ofUice until 2018. Currently, he is chairman of the Senate’s Standing Committee on Ports and Shipping. He is also a member of standing committees on Uinance, revenue, economic affairs, statistics, privatisation, interior and industries. Hassani tribe members live in various districts of Balochistan, including Chagai, Kharan, Dalbandin, Washuk, Kalat, Awaran, Khuzdar, Quetta, Nushki, Mastung, Panjgur and Makran. They also live in various areas of Afghanistan, Iran, and Iraq.
also shaking international conUidence and trust in potential of Pakistan," he said, adding, "Planning Division, Finance Division and EAD must be on the same page on the preparation of development plans as well as Commerce Ministry must also be taken onboard to enable it to devise strategy for trade promotion." He proposed a monitoring body to keep a check on pace of development projects and said departments concerned should be compelled to submit PC-4 immediately after the completion a project. Today situation was so grave that no one bothers to submit PC-4 even after 10 years of the completion of the projects which has increased the cost of projects several times than the actual one. “Corrupt ofUicials with the connivance of contractors carry out this practice for their personal beneUits because provision of funds for any project continues because the said project is considered as under construction as PC-4 is not submitted to the concerned department,” he lamented. "A huge amount of funds is wasted therefore Accountant General of Pakistan Revenues (AGPR) and Auditor General of Pakistan (AGP) must keep an eye on expenditures of funds to ensure their proper utilisation," Hassani said, adding that both the organisations were not fulUilling their duties in this regard. Commenting on state of affairs of the Ports and Shipping Ministry, Hassani said the ministry was rife with corruption as the ofUicials concerned were not willing to curb corruption from their ranks. There was no one to hold the corrupt ofUicials accountable for their wrongdoings, he added. The committee asked the ministry to refer the missing containers case from Port Qasim to the FIA some six months ago, but to no avail. It speaks volume about how interested the ofUicials concerned were in the ministry’s affairs, he concluded.
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SPECIAL REPORT 07
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08 EDITORIAL
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tax Reform Commission
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inance Minister Ishaq Dar has approved the formation of a Tax Reform Commission to review customs tariff and rationalise direct and indirect taxes prevailing in the country. The business community had been demanding the establishment of the commission for a long time to introduce tax reforms and simplify the tax system. The proposed commission will examine the structure of the Federal Board of Revenue (FBR) and will also review the matters relating to the administration and autonomous status of the board. The commission could also be assigned a task to check illegal crossings of the individuals and goods through the international borders. It will also look into setting up a border force and other matters related to it. The commission will comprise at least 20 members and will finalise its suggestion within 120 days. The government is taking steps to introduce tax culture and enhance tax net in the country. However, reforms in the tax system are also essential to remove sense of deprivation and disappointment prevailing among the business community. A consultation process and interaction between the tax administration and the taxpayers is important to improve tax collections in the country. The business community was right in demanding reforms in the tax system so that they pay tax as a national duty without any compression and compulsion. Some individuals in the bureaucracy always happy to come up with novel ideas to extract more and more money from the taxpayers. The tax administration has been in a position to listen to problems and grievances of the business community at the hands of various government departments. The government collects billions of rupees taxes from well to do individuals, and it should also come to their rescue when they are pressured from various factors, including the government agencies. Meanwhile, a traders’ body has decided to hold a meeting next months to launch a protest movement on the issue of sales tax, property tax and tax returns. They are demanding the government withdraw amendment to the Sales Tax Finance Act 2014-15. The government ought to listen to their problems.
E-scrutiny system LAHORE
DR AftAb AfZAl
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he Federal Board of Revenue (FBR) has taken a right step in the right direction when it decides to devise a foolproof mechanism to streamline the tax collection system. The board is developing an electronic scrutiny system (escrutiny system) to investigate and resolve tax evasion cases and the federal government has given a legal cover to the FBR’s move through Finance Bill 2014. The e-scrutiny system will also help analyze the available data and will cross match the income tax returns as well as will minimise the physical interaction between the FBR officials and
the taxpayers. The system will automatically send intimations to the registered taxpayers about any issue in the tax returns. Besides, the FBR will also be able to use the system as an instrument to laydown procedures and specifications for the improvement of the tax collection exercise. The major advantage of the computerised system will be to detect alleged corruption in the tax machinery and provide an opportunity to the business community to rectify their mistakes in their tax returns before any legal action is initiated against them by the tax department. The computerised system will also scrutinise the sales tax returns filed by the registered taxpayers and will keep the board updated about the record
The computerised system will also scrutinise the sales tax returns filed by the registered taxpayers and will keep the board updated about the record of tax issues
of tax issues. The system will help send intimations and will receive responses from the taxpayers for the information of the revenue officers. It is hoped that the computerised system will help alleviate the fears and problems of those taxpayers who are willing to pay taxes, but are unable to do so because of alleged blackmailing by corrupt elements in the tax machinery. Though tax evasion prevails even in the developed economies, unfair treatment and persecution is not so common there. It is necessary to protect the rights of small and medium level businessmen as a sense of vulnerability prevails among them. They want to run their businesses instead of indulging themselves in costly litigation.
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NATIONAL 09
OCTOBER 07 - OCTOBER 20, 2014
Collector Adjudication Ranjha adjourns SM foods case hearing
MULTAN: Hearing in Saim Mobeen (SM) Foods Maker Company’s misdeclaration case has been adjourned to Monday (October 13). Sources said that SM Foods Maker Company has moved an application for the verification of invoices in their misdeclaration case in the Court of Customs Collector Adjudication Saleem Ahmad Ranjha. The invoices recovered by Customs Intelligence & Investigation will be matched with the invoices presented at the Karachi Port Qasim for clearance of their goods declaration, they added.
FBR hikes sales tax on gold by 10pc KARACHI
WAQAR AHMED AnSARI www.customstoday.com
en times raise has been made in the sale tax of gold and the FBR has sent notices for recovery of sales tax in this regard. All Pakistan Sarafa Association President Haji Haroon Chand said that FBR has sent sales tax notices to gold sellers in which sales tax has been raised ten times. The FBR has imposed Rs 8,500 sales tax per tola which was earlier just Rs 50. The people attached with Sarafa Bazaar said that the FBR's recent step has badly affected gold trade and gold would be out of the reach of common man. The jewellers association has contacted FBR in this regard. Meanwile, FBR will cancel Sales Tax Registration Numbers (STRNs) of commercial importers, who have wrongly obtained 'manufacturing' status of products to evade taxes at the import stage. A senior officer of FBR told the media that the Directorate of Intelligence and Investigation Inland Revenue (IR) Karachi has caught many such cases in which importers have shown themselves as importers-cum-manufacturers and commercial importers have obtained the STRNs under the category of 'manufacturers'. He said that under the same category, Rs 700m tax fraud has been unearthed. The FBR officer said that the goods are imported without payment of value addition tax by commercial importers having status of 'manufactures' and sold in the open market without going through any manufacturers process. The detection of the scam would result in deletion of 'manufacturing status' from registration profile of involved commercial importers, he added. The tax department will also initiate proceedings of blacklisting the units under section 21(2) of the Sales Tax Act 1990, he held.
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WRItE tO uS YOuR gRIEVAnCES: Through CuStOMS tODAY platform HElp DESk, now you have chance to DIRECtlY write your problems to top govt. functionaries. If you have any grievances, queries, questions or suggestions, you can write in this section as it provides easiest access to you to approach Customs and Revenue authorities. WHO can write in this section? Importers & Exporters, Customs Agents, Chambers of Commerce, Trade Associations and Customs Officers tO WHOM you can write? Honourable PM, Minister/Secretary for Finance & Revenue, Minister/Secretary for Ports and Shipping, FBR Chairman, Member Customs and Chairperson Senate/National Assembly Standing Committee on Finance & Revenue. Send your letters at: newsdesk@customstoday.com.pk
Customs issues valuation ruling of one-side coated duplex board KARACHI
SYED MuHAMMAD ASlAM www.customstoday.com
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he Directorate General of Customs Valuation, through ruling No 694/2014, has determined the customs values of one-sided coated duplex board. The customs values of one-side coated duplex board grey back in sheets 300 GSM and up and oneside coated duplex board other than grey back in sheets’ have been revised through Valuation Ruling No 549/2013 dated 23-04-2013. Sources said that All Pakistan Paper Merchants Association, through a letter dated 13-09-2014, had requested the Pakistan Customs to revise the ruling, especially of Korean-origin duplex board grey back that was valued much higher than actual value. Therefore, the Directorate General of Customs Valuation revised the values of the said goods. Valuation methods given in Section 25 of the Customs Act 1969 were followed. Transaction value method in terms of Sub-Section (1) of Section 25 provided some reference values in the light of documents and data obtained from different clearance collectorates. The method was found inapplicable because sufUicient information with respect of adjustment to be made to the transactional value in terms of Section 25(2) was not available. Identical/Similar Goods
Valuation ruling of sodium lauryl ether sulphate issued he Directorate General of Customs Valuation has determined the customs value of sodium lauryl ether sulphate vide Valuation Ruling No. 695/2014 No.Misc/02/2014-II dated October1, 2014. The directorate initiated the exercise to redetermine the customs value of the item after it was brought into notice that its actual transaction value has increased considerably from the value determined in the previous valuation ruling. The valuation methods provided in Section 25 of the Customs Act 1969 were applied to address this particular valuation issue. The transaction value method under Sub-Section (1) of Section 25 of Act was found inapplicable because the requisite information under the law was not available. Identical/similar goods valuation methods provided in Sub-Section (5) and (6) of Section 25 of the Act provided some
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Method as provided under Sub-Sections (5) & (6) of the Customs Act 1969 were then applied. In the sequential order, the directorate conducted a market inquiry using Deductive Value Method under Sub-Section (7) of Section 25 of the Customs Act 1969. Consequently, the Fall Back Method as provided under Section 25(9) of the Customs Act 1969 was applied to arrive at the assessable
reference values. Market enquiry provided under Sub-Section (7) of Section 25 of the Act was also conducted. Ultimately, the fall back method under Sub-Section (9) of Section 25 of the Act was applied to arrive at the assessable customs value. Meetings with relevant stakeholders including M/s. Tufail Chemical and Surfactants (Pvt.) Ltd., Karachi; Pakistan Chemicals and Dyes Merchants Association (PCDMA), Karachi; importers as well as representatives of the FPCCI and the KCCI were held on September 11 and October 1. The PCDMA and FPCCI also submitted recommendations vide letter dated September 10. Finally, the Directorate General of Valuation re-determined the customs value of sodium lauryl ether sulphate. According to details, China-origin sodium lauryl ether sulphate having PCT Code 3401.1190 and Proposed PCT for WeBOC of customs values of one-side coated duplex board grey back in sheets 300 GSM and up and one-side coated duplex board other than grey back in sheets in this case. One-side coated duplex board grey back in sheet 300 GSM and up under PCT 4810.9200 and 4810.9900 of Korean-origin will be assessed to duty/taxes at $0.57/KG; goods from China/Hong Kong/Indonesia and Malaysia will
3401.1190.1000 shall be assessed for duty/taxes at Customs Values (C&F) at $1.25 per kg. The customs value (C&F) of Indian-origin sodium lauryl ether sulphate having PCT Code 3402.1190 and Proposed PCT for 3402.1190.1100 is determined at $1.30 per kg. The customs value (C&F) of sodium lauryl ether sulphate from all other origins having PCT Code 3402.1190 and Proposed PCT for 3402.1190.1200 is determined at $1.35 per kg. “In cases where the declared/transaction values are higher than the Customs values determined in this Ruling, the assessing officers shall apply those values in terms of Sub-Section (1) of Section 25 of the Customs Act. And in cases 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 this Ruling.” —CT Report be assessed at $0.555/KG; boards of Middle East will be assessed at $0.53 per kg and goods of other origins, including Europe and US will be assessed at $0.59 per kg. One sided coated duplex board other grey back in sheets under PCT 4810.9200 and 4810.9900 of China origin will be assessed to duty/taxes at $0.84/KG; Europe origin at $0.89/KG and all other origins at $89/KG.
Hardships for retailers under SRO 608(I)/2014 To, Mr. Ishaq Dar, Federal Minister of Finance Govt of Pakistan, Islamabad
Respected Sir, The primary concern of LCCI being premier Chamber of Pakistan is to proactively extend fullest support to its venerated members for redressal of their bona-Uide issues related to any public or private sector organization and exert for the development of trade and industry upto the maximum possible extent. Your good-self is aware that vide SRO 608(I)/2014 dated July 02, 2014, a two tier tax regime for retailers has been introduced. The retailers in the Uirst tier are required to be registered under the normal tax regime and pay sales tax after claiming input tax of purchases. The
second tier consists of those retailers who will be charged tax through electricity bills at the rates speciUied in sub section (9) of Section 3 of the Sales Tax Act. Since these retailers will be charged tax by electricity companies on the basis of their electricity consumption, they will not be required to Uile returns or to get themselves registered. Moreover, the conditions which are laid down in said SRO such as working in an air-conditioned mall and having a credit/debit card machine would hinder the retailers from adopting technology to provide better service quality to the people of Pakistan. There are many anomalies in SRO 608 which have made it incompatible with the existing taxation system. In this regard we humbly suggest the followings; • Kindly suspend said SRO with immediate effect and take into con-
Uidence the trade bodies before its implementation so that practicable solution is Uigured out in a manner which is workable and acceptable to the retailers. • Retailers should be asked to pay tax @1% on their sales if they enhance their sales by 5% per annum. This would simplify the tax system for the retailers, increase the tax collection and would also reduce their operating cost. • Income Tax and Sales Tax refunds up to the tune of billions of rupees have been stuck up with the department and have become a chronic matter for the business community. It has disturbed cashUlows of the business people and has ultimately increased their cost of doing business. We are of the view that further withholding of Income Tax and Sales Tax would worsen the situation and should be avoided.
• In the Federal Budget 2014-15, the Government has imposed a duty of 5% on the import of machinery. We apprehend that this levy would hamper the process of investment and industrialization in the country and would further enhance the level of unemployment in Pakistan. You are humbly requested to play your vitally signiUicant role to attract investment in the country by withdrawing said duty. We shall be much privileged if you could kindly get the matter looked into and issue necessary instructions to the concerned at your earliest convenience. With kind regards, Yours sincerely, Kashif Anwar Ex-VP LCCI, Lahore
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10 NATIONAL
OCTOBER 07 - OCTOBER 20, 2014
Customs seizes two non-customs-paid cars
LAHORE: A team of Customs Intelligence Multan Range has seized two non-customs-paid vehicles from Sadiqabad. The customs team was on a patrolling duty when it spotted the vehicles, including Toyota Crown worth Rs3 million and a new model Toyota Vitz carrying a price tag of Rs1 million. Customs intelligence officials seized the vehicles and started investigations.
Faisalabad Dry Port signs pact with DP World to start cargo train
kp business community urges federal govt to issue relief package
Suspension of cargo service caused huge losses to importers, exporters due to increasing cost of transportation
nADER kHAn
FAISALABAD
RAnA SHAHZAD
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he Faisalabad Dry Port (FDP) authorities have recently signed an agreement with DP World, a private company operating at Port Qasim, to provide cargo train facility from the FDP to Karachi Port. Talking to Customs Today, FDP Chairman Chaudhry Muhammad Siddique said the DP World has a portfolio of more than 60 marine terminals across six continents, including new developments underway in India, Africa, Europe and Middle East. Faisalabad’s business community, particularly importers and exporters, will again start using the dry port with a greater potential of cargo service which had been suspended by the Pakistan Railways three years ago. He said the dry port authorities moved to sign the deal with the new party after repeated pleas could not convince the Pakistan Railways to restore the cargo facility. He said the suspension of the cargo service caused huge losses to industrialists, importers and exporters due to increasing cost of transportation. The FDP chairman said that the unavailability of cargo facilities at the dry port
had a negative impact on national exports. The exporters and importers could save millions of rupees once the DP World started the service and it would be cheaper than trailer service. According to ofUicial data of the last Uive years, business at the FDP has drastically
ices have remained suspended at the port for the last three years as the Pakistan Railways was not in a position to provide service due to Uinancial and logistics restraints, leading to a signiUicant increase in the cost of doing business for the exporters, importers and industrialists. He said the efUiciency of the port had been consistently decreasing, which is now expected to revive after the new agreement. He said that Upcountry dry ports are the Faisalabad playing a pivotal role in Dry Port had bigger busiaccelerating the ness potential and dimencountry’s exports, says sions of export fDp Chairman and import cargo were goMuhammad Siddique ing to be increased owing to economic and trade activities. He said that dropped. efforts would be made to In 2008-09, keep the business cost equal the number of exto that of other ports of the counport containers was 18,687 and try. in 2013-14 it was 7,676. He said the export and import In 2005-06, the port handled business at upcountry dry ports 5,660 imports consignments, of the country was sharply hamwhich fell to 2,086 in 2013-14. pering and gradually sliding The port authorities held the down due to unrealistic and disPakistan Railways responsible tinctive policies of the governfor the downward slide. Siddique ment and in case this situation is said that the new cargo service continued, the dry ports would would decrease the cost of cargo sink and the billions of rupees incharges. The cargo handling serv- vestment would go down to
drains. Siddique said that the upcountry dry ports were playing a pivotal role in accelerating the country’s exports but the government was lethargic in resolving their issues. He showed concern on the problems being confronted by the dry ports and said that the exporters were shifting their businesses to Karachi due to a delay in refunding of their rebate claims. Siddique stressed on adoption of rules and custom procedures at upcountry dry ports on the pattern of Karachi Port and demanded that delay in refund of export claims should be abandoned forthwith. He said that due to distinctive attitude of the government, the exporters were reluctant to use dry ports due to delay in refund of export rebate claims and other factors. He said that in case the government was willing to upkeep the dry ports, it should bind the exporters for clearance of their consignments at their door-step instead of dispatching their consignments direct to Karachi Port so as to make these upcountry dry ports Uinancially stable. The FDP chairman said that a shortage of gas and electricity was badly affecting the exports. He feared that the industrial sector would completely collapse if remedial measures were not made for augmentation of gas and power.
PESHAWAR www.customstoday.com usiness community of Khyber Pakhtunkhwa (KP) on Tuesday urged the federal government to announce a new fiscal relief package to revive terrorism-stricken businesses and to give a much-needed boost to the economy of the province. The businesses and industries have been adversely affected due to deteriorating law and order coupled with a growing tendency of extortion in KP. The government needed to focus on terrorism-hit businesses and the province, which has been contributing in the country’s economy, said Fawad Ishaq, newly elected president of Khyber Pakhtunkhwa Chamber of Commerce and Industry (KPCCI). He was speaking at the annual general body meeting of the chamber. Awami National Party Senator Ilyas Bilour, who is also an Industrialist, chaired the meeting. Bilour said that KP business community was much resilient under the prevailing circumstances. He said they continued their businesses despite all odds and unfavourable conditions. He said the business forum had made efforts for resolution of issues, being faced by the community, particularly illegal Afghan SIMs, rebate and refund and rent-exemption of Auqaf and other properties in the province. “We will continue efforts to avail a fresh financial package from the centre for terrorism-hit business community,” he said.
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gujranwala to have dry port soon: Collector Qurban SIALKOT
ZAfAR MAlIk
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— Exclusive Customs Today photo
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ollector of Customs Model Customs (MCCS) Collectorates (MCCs) Sialkot Qurban Ali Khan has assured the business community of Gujranwala about the early amicable solution to their prolonged and perturbing problems. He maintained that the MCCs was making all-out efforts to provide all the advanced facilities to Gujranwala business community keeping in view the industrial significance of this industrial city. He stated this while addressing a recently held important meeting of local businessmen, traders and industrialists held at Gujranwala Chamber of Commerce and Industry (GCCI).
The Collector revealed that the industrialists and traders of Gujranwala were playing their pivotal role in strengthening the national economy. He said that the refund and rebate cases of Gujranwala business community would be cleared on priority. Qurban Ali disclosed that the industrial city would also get soon its own dry port, as the Gujranwala dry port would soon be established near Eimanabad-Gujranwala by the federal government. The proposed project of establishing Gujranwala Dry Port had already been sent to the federal government for its final approval, he said, adding that the dry port would be helpful to jazz up the pace of industrial activities in Gujranwala and its surrounding areas. Earlier, the senior officials of GCCI accorded warm welcome to Qurban Ali upon his arrival at the chamber.
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CARTOONS SPECIAL 11
OCTOBER 07 - OCTOBER 20, 2014
four imported Mazda trucks impounded in Multan
MULTAN: The Anti-Smuggling Organisation (ASO) seized four imported Mazda trucks worth Rs 40 million from the city during a search operation on Wednesday. The second-hand trucks were impounded for not paying customs duty. The trucks were used to transport goods in the city and its adjoining areas. Their original bodies were replaced to hide their identity. ASO Superintendent Malik Tanvir supervised the operation. Rest of the raiding team members were Inspector Haq Nawaz and Inspector Asghar.
Retailers declare markets ‘no-go area’ for tax officials KARACHI
CuStOMS tODAY REpORt www.customstoday.com
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ll Karachi Tajir Ittehad Chairman Attique Mir has said they have rejected SRO: 6081/14 and sales tax ofUicials would be not allowed to enter markets and business places. Talking exclusively to Customs Today, Mir said the Federal Board of Revenue would not be permitted to take one-sided decisions against retailers. He said they rejected all such policies which were adopted without consultations with the real representatives of retailers. He said they would not support enforcing of any system without addressing the objections of unregistered retailers, wholesalers and factory owners. Traders would resist if raiding teams were formed against them, he said, adding that tax net has been destroyed due to continuous amendments to the income tax and sales tax system. During the last Uive years as many as 80 percent taxpayers
have not submitted their tax returns and now registered traders were also Uleeing from the system. Current tax system was a unique gift for corrupt ofUicials. He said the tax system needed rectiUication. He warned
the FBR of taking action against traders. He said traders should not be compelled to take to the streets. He announced that an emergent meeting of trader representatives has been called. In the
meeting, he said, the trader representatives would discuss new tax policy and make important decisions. Attique Mir said traders would start countrywide protests if the FBR ofUicials were not barred from raiding mar-
Multan Customs collects Rs10.26b in Sept MULTAN
IMRAn AlI kHAn
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— Exclusive Customs Today photo
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he Customs Collectorate has collected revenue worth Rs 10.26 billion in September of Uiscal year 2014-15. The collectorate has collected customs duty of Rs 7 billion in September. The total customs duty collected includes Rs 7 billion, regulatory duty of Rs 0.299 million and warehouse surcharge of Rs 0.703 million. The federal excise duty worth Rs 8.418 million has been collected in September. A total sales tax on imported goods worth Rs 1.76 billion has been collected. Advance income tax collected by the collectorate is Rs 29.701 million. The Multan Customs Collectorate has collected Rs 9.6 billion from petroleum sector. Multan Customs Collector Sarfraz Ahmad Warraich said that they were trying to chase the huge target of almost Rs 42 billion in the Uiscal year 2014-15. He was exclusively talking to Customs Today about assigned revenue of his collectorate for the current Uiscal year. He said that his department was making efforts to achieve the allocated target. Warraich said he was doing his best to expedite revenue generation and indications were positive so far. He said his department was on the right track to achieve the target. He said that his members were working hard to meet the target. He said that they have so far collected Rs 31.49 billion and hoped to achieve the revenue target. Meanwhile, Customs Collector Adjudication has issued a show-cause notice to ‘the owners’
Collector Sarfraz Ahmad Warraich of 40,000 litres smuggled high speed diesel worth Rs3 million seized from Dera Ghazi Khan region. Customs’ Anti-Smuggling Organisation, during an operation, seized a Hino oil tanker having number plate TKM-719 and loaded with 40,000 litres of imported oil near Fort Monroo Road on July 23 this year and registered a case No 162/2014 against the accused. Three persons namely Noorullah, Syed Muhammad and Muhammad Raza are claiming ownership of seized high-speed diesel and oil tanker, which is also non-Custom-paid.
The owners are insisting that they have purchased the imported diesel from an auction in Loralai but they are unable to provide any concrete evidence about purchasing of diesel and oil tanker. Multan Customs Collector Sarfraz Ahmad Warraich told Customs Today that after thorough investigation, the case had been sent to Adjudication and Collector Adjudication would decide the case. Meanwhile, the Multan Customs Intelligence and Investigation has seized 1,400 plastic granule bags in two different raids. The ofUicials impounded two trucks loaded with the bags in Dera Ghazi Khan and Vehari. Customs Intelligence and Investigation Additional Director Nisar Ahmad formed two teams for the raids after getting a tip-off. One truck (TKB 228) was impounded in DG Khan which was carrying 750 plastic granule bags. Their total weight was 18,750 kg. The total worth of the seized plastic granules is Rs 4.1 million. The truck was on its way to Faisalabad. The second truck impounded from Vehari (TKJ 735) was also loaded with 750 bags and their total weight was 18,750 kg. The total value was Rs 4.12 million. Customs Intelligence and Investigation Additional Director Nisar Ahmad told Customs Today, “Plastic granules are used in the manufacturing of plastic goods and we are giving them no space to pass out.” He also said that his department was not showing zero tolerance for the customs unpaid goods. He said that a Uirst information report has been lodged and further investigation was underway.
kets. He condemned the unsatisfactory number of asset details submitted by government members. He said tax culture could not thrive in a country where people's representatives were tax evaders.
OnO issued against Royal packages to recover Rs478.56m he Collectorate of Customs Adjudication-II has issued Order-in-Original (ONO) against the importer M/s Royal Packages (Pvt) Ltd for its involvement in tax evasion to the tune of Rs 438.56 million by taking undue advantage of the concessionary SRO811(I)/2009 read with SRO645(I)/2011 and SRO152(I)/2013. The Collector of the Collectorate of Customs Adjudication-II Ahmed Mujtaba Memon in his judgment has also imposed a penalty of Rs 40 million on importer M/s Royal Packages (Pvt) Ltd under clauses 10(A) and 14 of the Section 156(1) of the Customs Act, 1969. R&D Section of MCC-Appraisement (East) had made a contravention report against the importer M/s Royal Packages (Pvt) Ltd in which it alleged that the said importer was involved in evading of leviable taxes including Customs Duty of Rs134,308,792; Sales Tax of Rs179,951,703 and Income Tax of Rs124,296,402 which makes up the total evaded duty/taxes to the tune of Rs438,556,897. In the ONO, the Collector of Customs Adjudication-II stated that the accused importer violated the Sections 20, 26, 32(1), 32(2), 32(3)A, 32A, 79 and 80 of the Customs Act, 1969 punishable under Clauses 10A, 12, 14, 14A and 43 of the Section 156(1) of the Customs Act, 1969 read with Section 36 of the Sales Tax Act, 1990 punishable under Section 33 of the Sales Tax, 1990 and read with Section 148 of Income Tax Ordinance 2001. —CT Report
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12
OCTOBER 07 - OCTOBER 20, 2014
Customs Intelligence impounds 6 smuggled luxury vehicles
SIALKOT: The customs intelligence has impounded as many as six smuggled luxury vehicles (worth Rs 20 million) during a search operation. According to the senior officials, the customs intelligence also arrested a Rawalpindi based accused trader Jehanzaib after seizing smuggled cloths (worth Rs 1.6 million) from his vehicle during a special checking near Sialkot-Gujranwala here. Meanwhile, Collector Customs MCCS Sialkot Qurban Ali Khan has vowed to launch a vigorous crackdown against the smuggled luxury vehicles in Sialkot.
China marks 65th Independence Day
LAHORE
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eople’s Republic of China on 1 October marked the 65th independence anniversary. Addressing a reception, President Xi Jinping said China will continue to give priority to development, adhere to reform and innovation and stay committed to the path of peaceful development. Xi called for enhanced conUidence in the path of socialism with Chinese characteristics as well as in the theory and system regarding the path. The Communist Party of China was key to the country's success, Xi said. "We must never waver in our faith and must never separate ourselves from the people." he said. "All problems that affect the Party's creativity, cohesiveness and effectiveness must be addressed, all illnesses that harm the Party's advanced nature and purity completely cured and all tumours grown on the healthy organism of the Party removed." He also stressed modesty and cautiousness as China will remain at the primary stage of socialism for a long time to come. "A nation may thrive in adversity but perish in ease," he said. "We cannot afford to be complacent at any time. This is certainly true for both the Party and the country, including the leadership and the people." He called on the Chinese people to cultivate and practice the core socialist values, build the will of the nation around its shared ideals and unleash Chinese
strength through Chinese spirit. "Sixty-Uive years is but a Uleeting moment in the history of human development. Yet in this short space of 65 years, the Chinese people have made spectacular and Earth-shaking changes," said Xi. Over the 65 years, China has transitioned from new democracy to socialism. It has blazed and broadened the path of socialism with Chinese characteristics, translating socialism into a successful path and institutional system, said Xi. Over the 65 years, China has made historic progress in raising social productivity and overall national strength, and the Chinese people have experienced a historic leap forward from poverty to having adequate food and clothing and to a life of moderate prosperity, he
Over 65 years, Chinese people have experienced a historic leap forward from poverty to having adequate food and clothing and to a life of moderate prosperity, says president Jinping
said. About 3,000 people from China and abroad attended the reception at the Great Hall of the People. Separately, a concert was held on 29 September to celebrate the 65th anniversary of the founding of the People's Republic of China. The concert, with the theme "Beautiful China and Glorious Dream" was held at the Great Hall of the People, watched by about 3,000 people. Chinese President Xi Jinping and other leaders, including Premier Li Keqiang, Zhang Dejiang, Yu Zhengsheng, Liu Yunshan, Wang Qishan and Zhang Gaoli attended the concert. Former leaders, including Jiang Zemin, Li Peng, Wu Bangguo, Li Lanqing, Zeng Qinghong and He Guoqiang were also present.
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
World leaders felicitate China
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eaders of countries and international organisations across the world have extended congratulations on the 65th anniversary of the founding of the People's Republic of China, and sent best wishes for China's prosperity and people's well-being. Under the leadership of the Communist Party of China, the country has made brilliant development achievements; the living standards of Chinese people have improved significantly; and China's international prestige and influence has kept rising, they said. They wished that China could constantly achieve new progress in the great historical course of national development. With the belief that China's development is a huge opportunity for the world, and that China is a major power of safeguarding world peace and promoting common development, they were looking forward to continuing to strengthen exchanges and cooperation with China.
kARACHI: Chinese Consul General Ma Yaou, Sindh Chief Minister Qaim Ali Shah, Education Minister Nisar Khuhro and Tourism Adviser Sharmila Faruqui cut cake on the 65th Independence Day of People’s Republic of China.