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pAkIStAN’S FIRSt INDeptH NewSpApeR oN CUStoMS
ABC Certified vol 2 Issue No. 36
karachi, tue Sept 23 - Mon Sept 29, 2014
weekly
Regd. No, MC-1381
SUppoRtINg BAjwA
PM Nawaz Sharif instructed Bajwa to start crackdown on tax evaders without any discrimination and broaden the tax net without taking any political pressure. | See pAge 02 |
FBR takes stance that the union doesn’t fall under definition of NICR and FBR is a government organization, not a trade organisation ISLAMABAD
MUHAMMAD FAIZAN
RISINg ReveNUe
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F FBR revenue witnesses a growth of 24pc in 16 days. If collection continued at same pace, FBR can achieve Rs2,810 b target. See pAge 03 |
MCC Appraisement-East Collector Najeeb notifies procedure, to be strictly adhered by all those concerned, for the clearance of used vehicles throughWeBOC. | See pAge 03 | CAptURINg lIqUoR
The Directorate of Customs Intelligence Karachi has established that M/s A-Z Corporation and its allies were involved in smuggling of contraband items. | See pAge 04 |
— Exclusive Customs Today photo
oUtlININg CleARANCe
ederal Board of Revenue chief Tariq Bajwa while terming FBR's CBA Union of Federal Revenue Alliance illegal has rejected its all demands.
The FBR has taken stance that the union doesn’t fall under definition of NICR and FBR is a government organization, not a trade organisation. The FBR further stated that the court has given verdict against the union and if employees go on strike, then action would be taken against them as per department rules and regulations. Therefore, their demands have no importance and it has been decided not to give reply to FBR union’s letter. It is pertinent to mention here CBA Union of FBR had written demands in a letter to FBR Chairman Tariq Bajwa a few days earlier and had threatened to go on strike if their demands were not met within seven days. Following the letter, FBR Chairman held long discussions with FBR Member Admin Shahid Hussain Jatoi and sent these demands to him. Mr. Jatoi further forwarded these demands to FBR Chief Management Dr
FBR has no existence of any union and some people are illegally using name of the union
Bashir Ullah. Sources in the FBR told Customs Today that a letter of CBA was sent to FBR Headquarters earlier that was ignored on the grounds that FBR has no existence of any union and some people were illegally using name of the union. But both the union and FBR have confirmed to Customs Today that they are fighting legal battle. It is now to be seen what line of action the union adopts after nearly straightforward refusal from FBR Headquarters because the Board has taken the decision that CBA union is illegal. Meanwhile, Tariq Bajwa has sought all model customs collectorates to provide the details of seized non-customs paid vehicles. As per notification, all model customs collectorates should send lists of non-customs paid vehicles at warehouses and ports, seized by customs. Sources told Customs Today that after the notification customs collectorates have started preparing lists of vehicles at ports and warehouses. Meanwhile, Pakistan Solar Association Vice Chairman Nouman Yousafzai asked FBR Chairman Tariq Bajwa to give tax compensation in solar system. Nauman Yousaf was of the view that by reducing tax value more public could be benefitted from solar power in recent energy crisis faced by country. FBR chairman has assured the association that FBR will provide every assistance and compensation on solar energy if the solar industry is ready to introduce cheaper solar systems. He also asked the association’s chairman to present his written suggestions in this regard.
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SEPTEMBER 23 - SEPTEMBER 29, 2014
FBR to remove flaws in sales tax collection
ISLAMABAD: FBR has intensified its efforts to remove flaws in sales tax collection to achieve the yearly target for FY 2014-15. FBR Chairman Tariq Bajwa and all members were briefed in a presentation on improvements in the collection system to collect sales tax. In the presentation members presented suggestions to remove flaws in collection system. Members gave suggestions to deal with those companies who collects sales taxes from consumers but did not bother to submit with FBR.
WaghatohaveWeBOC modulesin2weeks: DGTariqNawaz he pendingTransitTrade modules in theWeb Based One Customs (WeBOC), the online automated system of Pakistan Customs, at theWagha border would be installed within next two weeks, Director General of Reforms and Automation (R&A) in the FBRTariq Ahad Nawaz said. In an exclusive interview with CustomsToday at Customs House, Karachi, on Monday,Tariq Nawaz, who is also Member Federal Board of Revenue said that Pakistan Revenue Automation (Pvt) Ltd ( PRAL) is busy in developing the remainingWeBOC as per the specific designing specifications provided by the R&A. All infrastructure, connections and the gates to install the remaining transit trade modules have been made available at theWagha border, he added. However, the staff has yet to be imparted the required training, he maintained. “We are meeting all our targets on schedule as per timeline but we are feeling handicapped due to the shortage of technical staff at private software company PRAL,” he held. The DG R&A said that he met Abdul Majid Yousfani, Director R&A at Karachi’s Directorate and Director Internal Audit Rubina Wasti and discussed the status of relevant WeBOC modules with them.“I also met and discussed relevant R&A issues with the Additional Director Intellectual Property Rights (IPRs) who is holding the additional charge of DG IPRs”, he said. —CT Report
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FBRshouldadd newtaxpayers,not taxes:Ayeshaqazi xcessive imposition of taxes on registered taxpayers could create tax evaders, said LahoreTax Bar Association President Ayesha Qazi. In an exclusive talk with Customs Today onWednesday, she said the FBR should enlist the new taxpayers to achieve current fiscal year 2014 target. As the economy of Pakistan is not in good condition due to shortage of energy and political rifts, how it is possible to get more taxes from the traders who are facing losses, she questioned. She suggested that FBR should increase speed to broad the tax net.”We are here to help them to efficient the tax department, they can call us for help anytime”, she added. Commenting on the amended notification of the advance tax collection on international air tickets, she said that the services of our airlines were also poor which could face losses by imposing new taxes. She said that people would use other countries’airlines, which might be a setback for the domestic airline industry. Sources concerned told that almost 27,000 new NTN has been issued to the new taxpayers all over the Pakistan, while in Lahore Regional Office of FBR did not receive any returns from new taxpayers till the mid of September 2014. —CT Report
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pM, cabinet assure support to Bajwa on tax collections
ISLAMABAD
MUHAMMAD FAIZAN www.customstoday.com
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he Prime Minister Muhammad Nawaz Sharif instructed Federal Board of Revenue (FBR) Chairman Tariq Bajwa to start crackdown on tax evaders without any discrimination. He also told FBR chairman to broaden the tax net without taking any political pressure. As per details, FBR Chairman Tariq Bajwa has briefed the PM Nawaz and cabinet in a federal cab-
inet meeting on Thursday about tax collections so far. He also told the cabinet about the progress of double tax matters and agreements with Switzerland, Czech Republic and other countries. He told the premier that talks to amend the agreement with Switzerland were successful. On the other hand, PM has lauded the FBR chairman on his tax collection efforts and assured him full support of government while dealing with big tax defaulters. Tax experts were expecting more strict action against tax evaders after the assurance from prime minister to back the efforts of FBR chairman.
pM takes notice of overbilling rime Minister Nawaz Sharif has taken the notice of overbilling and theft of electricity and established a special committee under the supervision ofWater and Electricity Advisor Mussadaq Malik. He instructed that the committee will present the report within a week to solve the complaints of electricity consumers. Federal ministers Chaudhry Nisar Ali Khan, Shahid Khaqan Abbasi, Abbas Afridi and Sardar Yousaf have briefed the cabinet and the prime minister on the issue of overbilling.They said that the consumers living in small flats have received Rs 20,000 to Rs 25, 000 electricity bills by the government.They said it is not only the mistake of
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SC orders Dewan Cement to pay customs duty after 19 years KARACHI
SoHAIl RAB kHAN www.customstoday.com
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he Appraising Intelligence Branch of Model Customs Collectorate Appraisement-West is Rinally succeeded in managing its outstanding recovery of nearly Rs 80 million from Dewan Cement Limited (Pakland Cement) on its alleged involvement in tax evasion of Rs 86.84 million customs duty and sales tax. According to details, the case has been decided by Supreme Court of Pakistan (SCP) after 19 years, as the Model Customs Collectorate Appraisement in 1995 had detected the
tax evasion against Dewan Cement Limited in import of machinery, scrap and raw material in which the importer tried to evade legitimate duty/taxes in terms of customs duty and sales tax, while recovery of surcharge amount is still in pending as the apex court has not yet issued its verdict in this regard. Subsequently, the importer Dewan Cement Limited after issuance of demand notices by the authorities of Pakistan Customs in connection with the recovery of duty/taxes had moved to the Sindh High Court (SHC) and then the Supreme Court of Pakistan and got stay order. However, after 19 years efforts by the customs ofRicials
of law branch in MCC AppraisementWest, the apex court on Tuesday, gave its judgement in the favour of the Pakistan Customs and asked the Dewan Cement Limited to deposit its nonpaid duty/taxes amount. Shahid Ibrahim Dasti, an ofRicial of Appraising Intelligence Branch of the Model Customs Collectorate MCC of Appraisement-West lauded the efforts of law branch and said that the efforts of the ofRicials have made possible recovery of huge amount of Rs 80 million from the importer. It is important to mention that the Pakistan Customs has recovered an amount of Rs 4.58 million, while remaining amount is still to be recovered.
metre readers but highups ofWapda were allegedly involved in the matter. On the other hand,Water and Electricity Secretary Nargis Sethi has replied briefly on objections raised in the cabinet meeting. She said that electricity bills could have been increased because of recent decrease in load-shedding but the ministry will conduct investigations as per the instructions of the prime minister. Sources told CustomsToday that the government -- on the instructions of the IMF -raised the per unit price of electricity from 12 to 15 rupee per unit for residential consumers having more than 300 units. —CTReport
Customs I&I seizes truck of Irani rubber processing oil KARACHI
CUStoMS toDAY RepoRt www.customstoday.com
he Anti-Smuggling Organisation (ASO) of Customs Intelligence and InvestigationFBR, Karachi on Tuesday seized a truck during a raid at RCD National Highway containing hundreds of liters of smuggled Irani Rubber Processing Oil (RPO) worth Rs 5.1 million. On a tip-off, ASO Customs Intelligence and Investigation team confiscated the truck containing the oil worth Rs 5.1 million on the spot and also arrested the driver. According to an official of ASO Customs I&I, criminal proceedings were initiated after arresting one accused.
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NATIONAL 03
SEPTEMBER 23 - SEPTEMBER 29, 2014
Customs Court imposes fine on accused
KARACHI: Special Judge Customs & Taxation Court Soofia Latif imposed a penalty of Rs 10,000 on each of the seven counts in a case pertaining to counterfeit Vacate letter in export-related case. The court fined one Kamran Mahmood son of Mohammad Rafiq Rs 10,000 each for seven cases. The fine was deposited by Kamran, who was on bail.
Collector Najeeb outlines vehicles clearance process through weBoC
Revenue rises 24pc in 16 days of Sept: Asad
KARACHI
SYeD MUHAMMAD ASlAM — Exclusive Customs Today photo
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he Federal Board of Revenue (FBR) claimed to have collected Rs112 billion in 16 days of the ongoing month which is 24 percent more than Rs90 billion collected in the corresponding period of last year. According to FBR Member InlandRevenue (IR) and spokesperson Shahid Hussain Asad, the FBR revenue collection has witnessed a growth of 24 percent in the 16 days of the current month so far. He expressed the hope that if the revenue collection continued at the same pace, the FBR would be able to achieve the huge target of Rs2,810 billion by June 30. The FBR Member IR informed that the FBR had collected Rs431 billion so far in the two and half months of the current fiscal year which was more than Rs369 billion collected in the same period of the previous year. Asad pointed out that revenue collection was linked with the overall economic growth, adding that worst floods had adversely affected the agriculture sector besides hitting the poultry and livestock sectors hard. He feared that it would result in negative impact on the overall economy of the country.
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he Model Customs Collectorate of Appraisement-East Collector Najeeb-ur Rehman Abbasi issued an ofRice order notifying the procedure, to be strictly adhered by all those concerned, for the clearance of used vehicles through WeBOC. The ofRice order dated September 10 directs the online GD should be Riled by the clearing agent in the WeBOC system with the complete description of vehicle including any goods stuffed in the vehicle. The assessment of duty/taxes has to be made by on behalf of the importer’s agent under WeBOC system followed by payment prior to Riling of the GD. At the time of GD Riling the clearing agent is required to color scan and upload the following documents: original bill of lading or in case of surrendered B/L, a copy of delivery order; VIN information from manufacturer/authentic websites indicating Chassis No. and its date of manufacturing; purchase receipt/invoice and any other document which the importer wants to exhibit. After this, the system will assign the GD to the examining ofRicer to examine the vehicle, verify the Chassis, upload the pictures/images mentioned below and transmit the examination port, containing following information: the pictures/images to be uploaded including make, model and engine capacity; chassis plate indicating type/code and chassis number; odometer showing actual mileage of the vehicle; front/back
images of the vehicle; interior images of the vehicle; seat belt stickers; trunk; image of vehicle in full view and images of additional items found during examination. The vehicles falling outside the regime of Rixed duty/taxes will be jointly examined by EO and PA. However, random examination of this category of vehicles will be conducted by AC/DC as well. After uploading the examination report/images, the GD shall be assigned to the assessing ofRicer. Once the GD is assigned, the assessing ofRicer will call the documents and the GDs will be marked to the Documents Endorsement Cell (DEC) and at the same time the message will also be transmitted to the clearing agent through the WeBOC system. The clearing agent will bring all the original documents including passport, export registration certiRi-
cate etc. to the DEC. The AO (DEC) will receive these documents and after due scrutiny will endorse the passport and export certiRicate mentioning thereon the production date along with applicable depreciation while putting his name, stamp and signatures thereon followed by scanning original passport; front page of passport indicating particulars /photo ID of passport holder (notarized); passport pages indicating departure/arrival stamps by Immigration authorities; passport page showing endorsement by AO-(DEC) regarding clearance of vehicle; original export registration certiRicate duly endorsed with production date applicable ITP/VR and due depreciation by the AO-(DEC); prescribed undertaking on bond paper on letter head of the clearing agent (notarized). Once the documents are scruti-
nized and scanned by the AO (DEC) through his user-ID, the GD will be assigned to the assessing ofRicer who will complete the assessment in the light of declaration and the scanned documents duly endorsed by the AO DCE. While concluding the assessment, the AO will ensure correctness of production date, importability, application of correct value/Valuation Ruling/ITP and admissibility of due depreciation. All the GDs completed by the AO shall be marked to the Principal Appraiser (PA) for Rinal assessment and out of charge till further orders. Once the assessment is completed by the PA, the GD will be marked to clearing agent for acceptance or otherwise. If accepted, the GD will simultaneously be marked to the “Form-A Issuance OfRice (Examining OfRicer) for issuance of Form-A as well as to “Gate OfRicer” for gate out/release from the port. The “Form-A Issuance OfRicer” (examining ofRicer), through his userID will Rill in the Form-A, issue print out and provide it to the clearing agent for release from the port. In case the Off Dock Terminal and KPT, after assessment is completed by the PA, the GD will be marked to the terminal operator for allowing release from out gate and once release is allowed by the terminal operator the GD will be marked to the Gate OfRicer (PO/SPO, EO as the case may be) for delivery against Form-A issued by the respective examining ofRicer. In case of PICT, once the GD assessment is completed by the PA, the GD will be marked to the terminal staff at “out gate” for release through EDI message as the delivery of vehicle is containerized and therefore, no Form-A is required.
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NATIONAL
SEPTEMBER 23 - SEPTEMBER 29, 2014
Customs to issue Contravention Report against M/s Sundus Fertilizers
KARACHI: R&D Section of Model Customs Collectorate-MCC of Appraisement (East) is going to prepare a Contravention Report (CR) against M/s Sundus Fertilizers & Chemicals Pakistan (Pvt) Limited and M/s Al-Rehmat Trading in their alleged involvement in mis-declaration of classification, description and value of imported consignments. Another case of mis-declaration against the importer has been detected and Collector Najeeb-ur-Rehman Abbasi has asked the officers to execute legal formalities in this regard.
Customs Intelligence captures 6460 liquor bottles, 6816 beer cans KARACHI
Action against ‘fake’fabric importers soon
SoHAIl RAB kHAN www.customstoday.com
4 deputy collectors retiring this month: DC Farhat MULTAN
RABIA kHAN
— Exclusive Customs Today photo
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ultan Customs Deputy Collector Miss Farhat has said that four deputy collectors have been completing their service tenure in Multan customs office this month whereas a post of deputy collector is already vacant. Miss Farhat has expressed these views in an exclusive interview with Customs Today. She said that the Multan customs has collected Rs 10.69 billion import duty last year and it has collected Rs 1.04 billion in the first two months of the current fiscal year. Talking about the performance of anti-smuggling unit, she said that customs seized 151 vehicles worth Rs 97.17 billion last year, while it recovered 19 vehicles worth Rs 14.8 billion during first two months of current fiscal year. Moreover, she said that customs collected Rs 10.48 billion petroleum levy last year, while this year it is Rs 2 billion until now. She said that Multan customs collected Rs 36 billion revenue last year against Rs 12 billion target by Federal Board of Revenue for the fiscal year 2013-14.
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he Directorate General of Intelligence and Investigation-FBR, Karachi has yet not finalised the fate of the case in which the Anti-Smuggling Organisation (ASO) seized six trucks of imported fabric from the godown located in Allahwala Market near Lucknow Plaza. Reliable sources informed Customs Today that the Director I&I Karachi Asif Marghoob Siddiqui on Friday held a meeting with the officers at his office. “During the meeting, all aspects of the case were discussed thoroughly and it was decided that a final action against the importers of the seized fabric would be taken at the earliest”, they added. Responding to a query, sources did not rule out the option of registering an FIR against the importers. It is pertinent to mention here that a team of ASO on last Sunday raided a godown located near Lucknow Plaza in Allahwala Market and seized 6 trucks of imported fabric. It was transpired that the fabric was smuggled from India, Korea and China, as the importers had failed to produce the import documents of the fabric consignments. It may be mentioned here that the Customs I&I further claimed that the stamps of Afghan transit trade were also found on some of the bundles of seized fabric consignments. Subsequently, the Directorate General of I&I had given appropriate time to the importers in order to produce import documents. —CT Report
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— Exclusive Customs Today photo
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he Directorate of Customs Intelligence and InvestigationFBR, Karachi has made the seizure report against proprietor of M/s A-Z Corporation Abdul Dawood, its front man Shahid Khatri, Muhammad Zubair of M/s A-Z Corporation, Jawad Ghaffar of Xtreme Cars and clearing agent M/s L J Corporation for mis-declaration of description, quantity, value and H S Code of the imported goods. According to details, the importers and allies tried to smuggle foreign origin liquor assorted brand under the garb of import of Test Liner Recycle Liner Paper Rolls. The actual value of the seized goods including whisky, alcohol beverages of assorted brands concealed inside 18 Rolls of Test Liner Recycle Liner Paper including 3340 bottles of Black Label, 1030 bottles of Red Label, 993 bottles of White & Mac, 298 bottles of Cattos, 181 bottles of Vodka, 260 bottles of Cordier, 212 bottles of Grant, 1 bottle of Medoc, 4 bottles of Listel, 141 bottles of Chivas Regal, 293 cases of 6816 cans of Beer Carlsberg with a total value of Rs 10,317,043 while the alleged importer and allies declared Test Liner Recycle Liner Paper in Rolls (Brown), 150GSM width 125cm, 18 Rolls Net Weight 19500Kgs from UAE Origin having HS Code 4805.2400. The Directorate of Intelligence & Investigation-FBR Karachi stated in its seizure report that the accused
violated the Sections 2(s), 16, 32(1), 32(2), 79(1), 178 and 192 of the Customs Act, 1965 punishable under clauses (8), (9), (14), (45), (86) and 89 of Section 156(1) ibid read with Section3(1) (3) of the Import and Export (Control) Act, 1950 Section 3,6 (1) 33, 34 & 36 of the Sales Tax Act, 1990 and Section 148 (1) of the Income Tax Ordinance, 2001. As per details, a credible information was received in the Directorate General of Customs Intelligence and Investigation-FBR, Karachi that M/s A-Z Corporation with the active connivance of its associates in crime were involved in the smuggling of contraband items (liquor/beer) by mis-declaring its description, value and classiRication. The sources identiRied one of such consignments containing grossly mis-declared goods stuffed in 1x40
feet container No. BAXU-5006745, imported vide IGM No. KAPE225/2014 Index No 283 under Bill of Lading No. BAXSSS042797, lying at PICT East Wharf. In pursuance of information, the staff of Directorate General of I&I online blocked the Container in system which was imported by A-Z Corporation declared to contain Test Liner Recycle Liner paper in rolls (Brown). During preliminary investigation, it transpired that the importer M/s A-Z Corporation Riled online GD Machine No. KAPE-HC-118346 under sub-clause (b) of Sub-Section (1) of Section 79 of the Customs Act, 1969 in the WeBOC System through Muhammad Javed of M/s L J Corporation, wherein self-assessed tax liability on the aforesaid declared description of the consignment.
2,350 used cars imported in 74 days KARACHI
CUStoMS toDAY RepoRt www.customstoday.com
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ore used cars were imported during the Rirst 74 days of the current Riscal year ending September 12, statistics compiled by Model Customs Collectorate (MCC) of Appraisement-East under supervision of Collector Najeeb-ur Rehman Abbasi revealed. A total of 2,350 used cars were imported during July, August and the Rirst 12 days of September depicting an increase of 67 per cent over 1,408 units of used cars imported during the Rirst three monthsJuly, August and whole of September- last year. With 18 more days remaining in this month the volume of used car imports by this month is bound to depict a much bigger increase not only in terms of import value and revenue realization but also volume which already depicted a robust 67
per cent increase till September 12. The increase in the volume of used car imports, the numbers of which totaled 2,350 during the Rirst 74 days of this year has also pushed the revenue realization by 37.36 percent to Rs 1.750 billion including Rs 1.064.5 billion in Customs Duty; Rs 446.55 million in Sales Tax and Rs 239.35 million in Income Tax. The total revenue realization from the imports of 1,408 used cars during the Rirst three months of July, August and the whole of September 2013 was Rs 1,274.89 billion including Rs 749.29 billion in Customs Duty; Rs 364.6 million in Sales Tax and Rs 161m in Income Tax. The Customs Duty realization during the comparative period depicts a substantial increase of 42 percent. During the comparative period under discussion the total import value of used cars registered an increase of 21.5 percent- Rs 1,503.68 billion till September 12 this year compared to Rs 1,237.10 billion during July, August and the whole of September last year. This lesser 21.5 per cent increase in the total import
2,350 used cars import during July, August and the first 12 days of September depicts an increase of 67pc
value when compared to 67 per cent increase in volume; 37.36 percent increase in overall revenue realization including a 42 percent increase in Customs Duty alone could mean that most of the used vehicles imported into the country during the Rirst 74 days of the current Riscal year were small engine capacity cars that are subjected to comparatively lower duties and other taxes compared to bigger engine capacity counterparts. One interesting aspect of the statistics is that the total revenue realization of Rs 1750.35m from the import of 2,350 used cars imported during the Rirst 74 days of the current Riscal year was more than their combined value of Rs 1,503.68 millionthat is Rs 246 million in term of number and nearly 16.4 per cent in term of percentage. The trend follows the pattern during the comparative full Rirst three months last year when import of 1,408 used vehicles having a combined import value of Rs 1,237.10 million contributed total revenue realization of Rs 1,274.89 million.
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SPECIALREPORT
SEPTEMBER 23 - SEPTEMBER 29, 2014
P
the government must relax the economy from unnecessary barriers to attract foreign investment as well as to add new taxpayers into the tax net
ISLAMABAD
MUHAMMAD ARSHAD www.customstoday.com
PP Senator Islamuddin Shaikh, member of the Senate Standing Committee on Finance and Revenue has said that only free economy can broaden the tax net. He said that contact with International Monetary Fund (IMF) hand coughed the government because it compounded the economic problems of the country. In an exclusive interview with Customs Today, Islamuddin Shaikh said that world had shrunk into the global economic village and Pakistan could not move forward without relaxing economic restrictions. The government must relax the economy from unnecessary barriers to attract foreign investment as well as to add new taxpayers into the tax net. He said that the previous government carried out an exercise and identified over three million new taxpayers, but the incumbent government could not get yields of that exercise. The sitting government instead of following set precedent of our government tended to overburden the existing taxpayers by levying additional taxes. Similarly, he said that the government, instead of exploring new economic horizons to increase revenue, rushed to sign package with IMF, and under the signed accord, the , vt The go of government had d a e to increase t s n i g new n prices of daily i r o l p ex commodities, ic econom to withdraw subs sidies as well as horizon e add additional d increas
e e, rush e u n e v e r packag to sign F with IM
surcharges in the utility bills tantamount to doubling the price of every commodity and making lives of common man miserable. Coming hard on bureaucracy, Shaikh said that attitude of bureaucracy and officers of the Federal Board of Revenue (FBR) towards businessmen and investors needs to be changed to promote harmonized environment in the country. The ‘baboos’ consider every businessman a thief and tax evader, this approach must be changed and they must play role of facilitators rather than investigators. Flight of capital, he said that was the burning economic issue of the country and government should focus on bringing foreign investment to enhance business activities in Pakistan. Unfortunately, law and order situation resulted in flight of capital from Pakistan during last ten years and now the government must come up with long and short term policies to not only bring the flown capital back as well as foreign investors to Pakistan. Endorsing the claim of the Commerce Minister about volume of loss to economy due to Azadi and Inqilab marches, Shaikh said that both the leaders of marches had inflicted irreversible loss to the economy and economy could suffered more in coming days but Pakistan People’s Party (PPP) came forward with a reconciliatory role between the government and protestors. “Chairman Pakistan Tehrik-eInsaf (PTI) Imran Khan and leader of Pakistan Awami Tehrik (PAT) Tahir-ul Qadri have their own agendas, but being a politician, Imran Khan must realize a fact that a politician never closes doors of dialogue, therefore, he must drag PTI out of political iso-
lation instead of pushing his party into a closed end,” he commented. “Furthermore, Tahir-ul Qadri, in pursuance of his agenda, whatever it is, carried out a long march to Islamabad but previous government handled it very aptly and sitting government should also follow the footprints of the PPP government,” he suggested. Senator Shaikh said that unfortunately postponement of Chinese President’s visit to Pakistan was severe loss to economy and country’s image abroad. China is a well-wisher of Pakistan not only in the South Asia but in the whole world. Moreover, China seemed willing to invest billions of dollars in Pakistan, memorandums of understanding (MoUs) were to be signed during Chinese President’s visit, but now China has signed agreements of economic cooperation with India. He said that besides efforts of the current government, recent meetings of the former President Asif Ali Zardari with Chinese leadership had also played key role in paving way for investment in Pakistan, but tragically, for the time being fruits of strenuous efforts seemed delaying, however, hopefully the Chinese President would review his schedule to come to Pakistan, because Pakistani nation saw China as lone friend in the international community. When asked who was responsible for this tragic development, Shaikh held both the leaders of Azadi and Inqilab marches as well as the government responsible for this, adding, the Punjab and the federal governments could have addressed reservations and complaints of Tahir-ul Qadri and Imran Khan by registering FIR of the Model Town incident and investigating into allegations of rigging in the elections respectively.
pRoF
Islamud privati in the whip unsha
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SEPTEMBER 23 - SEPTEMBER 29, 2014
SPECIALREPORT 07
and irs, Statistics t a ff A ic m o n eco an e, Revenue, tive particip c c n a a n a in F n e n e o b s tee has ief ding Commit Finance Committee. He , he held portfolio of Ch n a t S e t a n e nt he S and us governme House. He has also member of t cedures and privileges io v is re ly p t n g re in r r u u c dh and ration. D les of pro data in the e in u d S R id e s , r, s ir n u u n o k c q k io r t u re e a S d d ic an un un hails from ustry, Comm paration on the subject y of ministers, members d In e ddin Shaikh il t x e t merce and availabilit mplete pre ization, Com the committees with co d his duties by ensuring te of proceedings d enthusiastically execu rty (ppp). n ’s pa ea in the Senat ce with pakistan people gian akeable alle
FIle:
y photos
oms Toda — Exclusive Cust
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08 EDITORIAL
SEPTEMBER 23 - SEPTEMBER 29, 2014
Founder & Chairman Zulfiqar Ali Editor Rahil Yasin editor@customstoday.com.pk For advertising & subscription marketing@customstoday.com.pk +92-300-4009261 www.customstoday.com Phones: 042-35781643-4, Fax: 042-35781645 Address: 627, Siddiq Trade Centre, Gulberg, Lahore
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Dwindling pak rupee akistani rupee is under pressure again, losing value against US dollar in inter-bank and open markets day by day. Once upon a time, rupee was attached with UK pound and all the payments used to be made in pound sterling, but was shifted to dollar in early 70s. Rupee had never been valueless even during the united Pakistan despite a long and tyrant military regime, economic woes and political unrest. May be the money lords were not born yet or were not powerful to manipulate the currency market in their favour. Now they are active, functional and working in full swing to batter Pakistani rupee for vested interests as they have done in 90s. Money value has strong link with economy. Better the economy, stronger the currency. In 80s, Pakistani rupee was equal to four yen. Now yen is strong and rupee is melting. It is the job of policymakers to streamline economy with fresh ideas, but if they are just carrying through the service period in routine – by enjoying salaries and perks -- economy will crumble and so will be the currency. The government policymakers now must wake up and realise their duties and obligations and must understand modern economic trends. Containing the strengthening of dollar with borrowed money and other cosmetic steps will not serve any purpose. There is a need to strengthen economy and induce the world business tycoons to avail investment opportunities in Pakistan. US dollar strengthened 30 paisa to reach Rs 102.5 in inter-bank and Rs 102.9 in open market. That is the condition of Pakistani rupee right now. The downward trend of the Pakistani rupee has been continuing since Pakistan Tehreek-e-Insaf chief Imran Khan and Pakistan Awami Tehreek chief Dr Tahirul Qadri took out long marches and are holding sit-ins in the federal capital. The government, on the other hand, is trying to use delaying tactics and is practically not in a mood to negotiate with the protesting parties. It is trying to dump sit-ins in Red Zone, but this strategy can backfire. The nation is waiting for a solution to the problem as sit-ins are affecting all the businesses in the country. There should be no rigidness in politics and all the parties concerned must find an early solution to the political impasse. Meanwhile, thousands of Pakistani are going for hajj and they need dollars while Pakistan has to pay two installments to the International Monetary Fund – one $57 million and another of $147 million -under the standby arrangement facility. However, the government should come forward with an early plan to salvage rupee from further dwindling.
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pakistan –a promise land for startups LAHORE
DR AFtAB AFZAl
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akistan's population is increasing at a fast rate, so are the business opportunities. More are the people -more you need houses, more you need cloths, more you need food, and more you need luxuries and necessities of life. One may argue that quality of life is more important, but quantity of people is equally important. If you want to start a business you need consumers to buy your products. According to the World Startup Report, a Silicon Valleybased organisation, Pakistan’s population can reach 210 million by 2020. It is still the sixth
largest country of the world and a promise land for startups. There is potential in every sector of the economy in Pakistan. If the population is increasing, industry is also increasing. There was a time when the facility of washing machine, television set, refrigerator and air conditioner was hardly available to a few percent of households. Now close to hundred percent people in urban areas of the country have latest brands of washing machines, refrigerators and plasma LCDs. The report says that the country has 136.5 million mobile phone users and 110 million of them are ready to subscribe for 3G/4G by 2019, with the is-
suance of license for the third and fourth generation network in the country. You can develop nexus between quality of life and quantity of people through technology. You will have definitely a few options if you do not opt for technology. It is indispensable. If you cannot developed technology just copy it from developed countries as Japan is doing with German and US technologies, as are doing China, Korea, and Malaysia by following the footstep of Japan. The report says that at least 12,500 Pakistanis are working in the Silicon Valley, contributing their share of skills in technological advancements across the globe. But there is a lesson for Pakistani policy-makers. If Ko-
rea has adopted the Pakistani model, you can adopt Vietnam model which is one of the fastest growing economies in the world. It will soon be another Asian tiger. The most important thing you need to have is sincerity and – of course – commitment. If you have commitment and resolve with an element of sincerity, nobody can stop you from becoming a modern and developed nation. If you have the vibrant economy, every country of the world will try to become your trade partner. If you refuse to learn the complexities of the modern economy, learn to live your life in miseries and die with a begging bowl in the hands of your coming generations.
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NATIONAL 09
SEPTEMBER 23 - SEPTEMBER 29, 2014
FAte to educate taxpayers on e-filing of returns: Bukhtiar
SIALKOT: FATE chief Bukhtiar Muhammad said that FBR has been removing flaws from e-filing system of tax returns submission to make it more user-friendly, to facilitate the business community and potential taxpayers. “FATE is taking the taxpayers into confidence for expanding the tax net under the supervision of FBR,” he said, adding that the FATE has been making sincere efforts to educate the business community about the submission of their tax returns through s-filing system.
Bajwa briefs ADB president about Pakistan’s tax system BR Chairman Tariq Bajwa called on Asian Development Bank (ADB) President Takehiko Nakao and a delegation of American Business Council and briefed them about tax collection mechanism and performance of FBR in this regard. ADB President lauded the FBR functioning along with stressing upon widening the tax net. Similarly, FBR chairman briefed the American Council delegation about the tax system in Pakistan. American Pakistanis are eager to invest in Pakistan especially in the energy sector, however they want to get full knowledge about the tax system in the country, first of all. FBR Chief Tariq Bajwa told the delegation that Pakistan has tax friendly system and taxpayers are considered as partners. —CT Report
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officers to submit performance report BR has asked grade 17 and above officers to submit performance evaluation reports (PER) of the year 2014 with their PER certificate to respective reporting officers. As per details, the FBR has asked all chief commissioners Inland Revenue, LTUs, RTOs, customs chief collectors, customs collectors, director generals, commissioners Inland Revenue and chief coordinators to inform the grade 17 and above officers to submit their evaluation reports of 2014 performance with certificates to their respective reporting officers. The FBR has also asked counter signing officers to submit their reports to PER board. It also enquired officers of promotion zone to submit their missing PERs without any delay. —CT Report
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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
valuation ruling of motorcycle parts issued KARACHI
SYeD MUHAMMAD ASlAM
Importers, dealers dissatisfied
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mporters and dealers of motorcycle spare parts have said that revisedValuation Ruling has failed to redress their grievances and concerns. Talking to Customs Today, the importers and dealers said that the Valuation Ruling 686/2014 dated September 15 was a mismatch of reduction and increase in the Customs values of the said motorcycle spare parts imports. They cited various examples like the Customs Value (C&F) on Oil Through is fixed at US$ 14.00 per kilogram depicting US$ 1.16 increase while the Customs values of Cylinder Head Cover (Front & Rear) is fixed at US$ 5.85 per kilogram depicting a reduction of just one US cent. Similarly, the Customs value for Insulator Carburetor is determined at US$ 4.47 per kilogram
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he Directorate General of Customs Valuation has determined the Customs value of motorcycle parts through Valuation Ruling No 685/2014 under Section 25-A of the Customs Act 1969. The Customs values of motorcycle parts were earlier determined earlier vide Valuation Ruling No.664/2014 dated March 31,2014 and Amendment dated April 4,2014. However, the All Pakistan Motorcycle Spare Parts Importers & Dealers Association and others being aggrieved and dissatisfied by the above ruling filed a Revision Petition with the Directorate General of Valuation which revisited the issue and after examining the matter, has determined that the motorcycle parts, all of whom are of China origin, shall now be assessed to duty and taxes as highlighted below. According to details, the Customs value (C&F) of Oil Through H.S. Code 8714.1090 and proposed PCT for WeBOC 8714.1090.1000 is fixed at US$ 25.00 per kilogram for OEM brands (Genuine Parts) and US$ 14.00 per kilogram for commercial brands (No genuine parts). The Customs value (C&F) of
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Spring clutch lever H S Code 7320.9090 and proposed PCT for WeBOC 7320.9090.1000 is fixed at US$ 0.055 per piece for OEM brands (Genuine Parts) and US$ 0.043 per piece for commercial brands (No genuine parts). The Customs value (C&F) of Spring clutch lever H.S. Code 7320.9090 and proposed PCT for WeBOC 7320.9090.1000 is fixed at US$ 0.055 per piece for OEM brands (Genuine Parts) and US$ 0.043 per piece for commercial brands (No genuine parts). The customs values of cylinder Head Cover (Front & Rear;, Insulator carburetor, ring for piston; carburetor; crank case (Right &
depicting an increase of 2 US cents. They, however, expressed relief at the US$ 0.28 reduction in the Customs value of one of the top selling motorcycle replacement spare part- the spark plug.The Customs of the nongenuine spark plug China origin is fixed at US$ 0.12 compared to US$ 0.40 vide theValuation Ruling 664/2014 dated 31.3.2014.The Customs value of the OEM spark plug China origin is also been reduced by half to US$ 0.50 per piece compared to US$ 1.00 previously. All Pakistan Motorcycle Spare Parts Importers & Dealers Association (MSPIDA) as well as the Association of Pakistan Motorcycle Assemblers (APMA) have long been stressing for fair determination of Customs values on motorcycle spare parts.The MSPIDA argues that left); crank case cover (right & left)’; C.D.1 unit and Bolt Flange 6x22 are fixed at US$ 8.45/kg OEM and US$ 5.85 per kg for commercial brands; US$ 13.60 per kg and US$ 4.45; US$10.00/kg and US$ 4.00/kg; US$ 11.50/kg and US$ 4.15/kg; US$ 5.70/kg and US$ 3.96/kg; US$ 5.30/kg and US$ 3.70/kg; and US$ 0.80/pc and US$ 0.19/pc and US$ 3.94/kg and US$ 2.80 per kg respectively. Similarly, the Customs values for Bolt A-Cylinder stud; spring cam chaim; spring value inner, rectifier regulator, bolt flange 6x65 and piston is determined at US$ 0.015/pc and US$ 0.011/pc; US$ 0.03/pc & US$ 0.027/pc; US$
since replacement/non genuine motorcycle parts were of lower quality and thus lower C&F value than the OEM and genuine parts, their customs values should be determined separately. On the other hand, the APMA, which represents assemblers that turn China origin Completely Knocked Down units into finished motorcycle has been emphasizing for single values for both the OEM brands/ genuine parts and commercial brands/ non genuine motorcycle spare parts. Similarly, Pakistan Automotive Manufacturers Association (PAMA) has been stressing that many motorcycle parts are usually being assessed at values below raw material cost which in turn is benefiting the commercial importers by diverting Chinese OEM brands to them. 8.00/kg and US$ 2.69/kg; US$ 3.63/kg & US4 2.68/kg and US$ 5.74/kg and US$ 2.25 per kg. The Customs values for hub (front &rear); Bolt Flange; valve inlet/exhaust; cylinder head; key lock set (5 pieces set); drum gear shift; shock absorbers (front and rear); clutch assembly and crank shaft (right & left) are fixed at US$ 2.89/kg and US$ 2.44/kg; US$ 3.14/kg & US$ 2.26/kg; US$ 10.84/kg & US$ 2.17/kg; US$ 5.34/kg & US$ 2.17/kg; US$ 3.71/kg & US$ 2.00/kg; US$ 2.85/kg & US$ 1.97/kg; US$ 2.10 & US$ 1.95/kg; US$ 3.02/kg and US$ 1.94/kg and US$ 4.52/pc and US$ 3.73/pc respectively.
Uniform clearance of mineral oil and white oil To,
Nisar Muhammad Khan, Member Customs, FBR, Govt of Pakistan, Islamabad Dear Sir, Pakistan Chemicals & Dyes Merchants Association (PCDMA) presents its best compliments and wishes to you. We would like to draw your immediate attention towards the subject. It is learnt that Mineral Oil and White Oil under PCT 2710.1991 & 2710.1996 are being released from various Dry Ports & Port Qasim @US$900/MT causing huge lose to national exchequer. In fact Customs has fixed assessable value of Mineral Oil and White Oil under "Guideline price" @US$ 1280/MT for all origins which is on higher side and we have recommended the assessable value but it is not considered yet, our suggested values are as under:
• Hs Code 2710.1991
Mineral oil, Indian origin
@USD l205/Mt CNF karachi
• Hs Code 2710.1991
Mineral oil, korean origin
@US$ I350/Mt CNF karachi
• Hs Code 2710.1996
white oil, Indian origin
@US$ 1205/Mt CNF karachi
• Hs Code 2710.1996
white oil, korean origin
@US$ 1350/Mt CNF karachi
Though we are against "Guideline prices" due to its unrealistic status but till its withdrawal, assessable values of several products suggested always & often. Our member firms are very disappointed and facing great problems by paying duties on higher side, and it is also very surprising that "Guideline prices" are only for Karachi, while these should be implemented throughout Pakistan. This attitude is creating great discrimination between importers of Karachi & other parts of the country.
We believe that PCDMA is well known to you and you are fully aware that we are striving to keep the works on right direction, hence, it is hoped that you would surely take the matter on priority. Association looks forward for your positive action. With profound regards, Shaukat Riaz, Chairman Pakistan Chemicals Merchants Association, Karachi
&
Dyes
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10 NATIONAL
SEPTEMBER 23 - SEPTEMBER 29, 2014
ANF receives 20,000 applications against 254 posts
ISLAMABAD: The Anti-Narcotics department has received more than 20, 000 applications till now against 254 vacancies in the ANF Headquarters Rawalpindi. Ministry of Interior has invited applications from suitable male/female candidates for the vacancies of grade1 to 14 to be submitted before September. Sources expected that number of applications would certainly touch the figure of 30, 000 till last date as ANF has received 20,000 application five days ahead of last day.
Chief Collector Nasir Masroor terms under-invoicing dilemma KARACHI
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— Exclusive Customs Today photos
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ustoms Chief Collector Appraisement-South Nasir Masroor Ahmed has said that the customs authorities issued valuation guidelines because principal appraisers and appraisers of the Pakistan Customs Services were not applying the customs values of commodities in proper way. He visited Karachi Chamber of Commerce and Industry (KCCI) on Wednesday. Collector MCC Appraisement-West Muhammad Saleem, Collector, MCC Appraisement-East Najeeb-ur-Rehman Abbasi, Collector MCC Port Muhammad Bin Qasim Surriya Butt, Additional Collector of MCC Port Muhammad Bin Qasim Irfan Javed and Deputy Collector Afzal Ahmed Wattoo accompanied the chief collector during the visit. The KCCI President Aamir Abdullah Zaki, Vice President Muhammad Idrees, BMG Vice President Anjum Nisar and other ofRice bearers of the chamber were also present on the occasion. On the occasion, Chief Collector Nasir Masroor was told about issues faced by business community. The chief collector termed under-invoicing a dilemma which affects the national exchequer to a great extent, adding that the importers should Rile true value while trading goods. “There is a need to launch awareness campaigns so that traders could save themselves from unnecessary delay caused by their own faults like mis-declaration, under-invoicing and tax evasion,” he added. Speaking at the occasion, the chief collector informed the KCCI
Chief Collector Nasir Masroor receiving sheild from kCCI president Abdullah Zaki
ADC port qasim Irfan javed
Collector Muhammad Saleem
Collector Najeeb-ur-Rehman Abbasi
Collector port qasim Surriya Butt
that he has constituted a committee comprising of ADCs of all three collectorates to resolve the issues of the trade bodies. Commenting on the grounding issues of the containers at PICT and KICT, the chief collector made it clear that the said issue was directly linked with the
terminal operators, adding that the authorities of Pakistan Customs were planning to hold meetings with the authorities of terminal operators to solve grounding issues. He informed the chamber members that the Ministry of Commerce and the Federal Board
of Revenue (FBR) are working jointly in order to form an Electronic Data Interchange (EDI) to solve FTA issues. Earlier, KCCI President Abdullah Zaki highlighted the problems being faced by the trade bodies related to Customs.
Deputy Collector Afzal Ahmed wattoo
irectorate of CustomsValuation Director Mahboob Saqib Khan, who is proud to be an associate of Customs Department, has retired attaining the age of superannuation in BPS-20. According to the Customs officials from top to bottom, Khan has been a brave, bold and blunt man with diverse qualities. During his service Khan has contributed significantly in the development of the Customs Department. He has a number of achievements to his credit. As Deputy Director Training he had obtained funds for the rehabilitation of the old Customs House and saved the building from collapse. He took possession of 2.2 acres of land from the
provincial govt for which payment was made by the department 14 year earlier with the help of Zafar Iqbal, his Director. As ChiefTEPI and Computer Bureau, he upgraded the computer hardware and provided optic fibre based connectivity, to all floors of the Customs House. He also provided connectivity to all customs stations from Karachi to Gilgit besides being the part ofTEPI he also reorgnised theValuation Department and published three guides for auditors doing post clearance audit. He has the honor of revising the Rebate Notifications with the consent of the respective trade bodies /associations which saved the FBR Rs. 22 billion per year with
— Exclusive Customs Today photo
RetiringMahboobSaqibproudtobeassociateofCustoms D subsequent yearly savings which saved the exporters from potentialWTO cases. As Collector Appraisement, Karachi, he introduced Automated Customs Procedure of Clearance which is still in place. He with the help of his colleagues Amer Ahmed and Agha Jawad, made the Customs Foundation with Rs. 10 million. He was one of the main persons in the team which redesigned the new GD form and implemented it. He also obtained possession of 4 acres of land on which Directorate of Customs Intelligence was built .“I feel some comfort in looking back in my service. I am grateful to God who gave me the opportunity and beg His forgiveness for my omissions. First of all I
would like to thank the Chairman and Member Customs for their consideration and help in my bad patch. Now I would like to say Khuda Hafiz to all my colleagues and service fellows,” Khan told CustomsToday. “The service provided me with opportunities of learning and training. I was a banker for about 3 years in NDFC, which was an enlightening experience. I am proud to be a Customs Officer and have no regrets opting for it even though I was 6th in Pakistan in my batch i.e 7th CTP,” he stated. Advising his colleagues and young officers, he said that they should be positive, helpful to the public and bold to accept the challenges. —CT Report
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CARTOONSSPECIAL 11
SEPTEMBER 23 - SEPTEMBER 29, 2014
Asad Mashadi elected RCCI president unopposed
RAWALPINDI: Syed Asad Haider Mashadi of Mian Pervaiz Aslam Group elected unopposed as President of Rawalpindi Chamber of Commerce and Industry (RCCI) for the year 2014-15. The three-member RCCI election commission consisted of Naveed Javed, Chaudhry Iqbal Ahmed and Tariq Javed Butt announced unopposed election of the winners at a meeting held here. The announcement of newly-elected Senior Vice President Mian Humayun Parvez and Vice President Saboor Malik was also made.
LahoreCustomsunearthsRs208millionfraud;FIRlodged LAHORE
M HAYAt
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he Customs Collectorate Apraisement Lahore unearthed Rs 208.72 million tax fraud on 51 imported consignments of four years. In the FIR, Customs authorities accused that Customs Clearing Agent Messers Akram Associates in connivance with importer Massers Hussain Cane (PVT) Limited has been involved in mis-declaration and getting cleared imported Electrolytic Tin Plate and other steel sheets in the name Quality Electrical Silicon Steel Sheets. It was disclosed that the clearing agent used to exchange samples of imported items before laboratory examination in order to attain reports favouring his cause of mis-declaration. According to the importer, the Electrical Silicon Sheet is used in tin containers to preserve food items. On the other hand, the Customs Department discovered that the sheet was not Quality Electrical Silicon Steel Sheets but Electrolytic Tin Plate. The Customs Department sent the imported sample of the imported sheet to Industrial & Analytical Centre HEJ Lab Karachi and Assaying Hallmark Labora-
tories Lahore to know whether the sheet was Electrical Silicon Steel Sheets or not. Both the laboratories conRirmed that the sheet was not Electrical Silicon Steel Sheets but ETP. Furthermore, the department contacted Ameritin International USA from where the importer had imported the consignment. The reply of the US company to
the Customs Department also made it clear that the sheet was not Electrical Silicon Steel Sheets but Electrolytic Tin Plate. According to the Customs Department, the importer was given the chance to explain his side of the story. Nevertheless, he Riled incomplete reply without solid and sufRicient evidence to prove his innocence. Investigations
have proved that Massers Hassan Cane has been importing tons of ETP which instead of Electrical Silicon Steel Sheets make containers to preserve food stuffs, the Department stated. The Customs Department also disclosed that the import of ETP has been reduced to a signiRicant level while Electrical Silicon Steel Sheets increased manifolds in
FBR fails in issuing tax cards
FIA likely to grill customs officials for clearing pharma raw material team of the Federal Investigation Agency (FIA) Lahore is mulling over to visit Karachi for further investigating the case related to the clearance of pharmaceutical raw material in which 76 Customs officials involved. Sources informed CustomsToday that a team headed by FIA Assistant Director Mian Asif, husband of slain MQM MNATahira Asif, may visit Karachi to investigate the case of the clearance of Pharma raw material by the Pakistan Customs.The sources further revealed this scribe that the FIA officers/officials will conduct some bold action including arrest of the Customs officials, who were allegedly involved in the clearance of pharmaceutical raw material without prior permission by the Federal Drug Department (FDD).However, Section 217 of the Customs Act, 1969 would not allow the FIA authorities to take such action (arrest) against the Customs officials, as Section 217 stated“No suit, prosecution and any legal action could be taken against the federal government servant”. It is pertinent to mention here that the case of the clearance of the pharmaceutical raw material has become the bone of contention between two federal organizations, Federal Drug Regulatory Authority and Pakistan Customs for last couple of months.The Drug Regulatory Authority (DRA) was of the view that the Pakistan Customs officials had involved in the clearance of pharmaceutical raw material illegally and the importer Intervac (Private) Limited; Lahore did not have the clearance certificate, which is mandatory under Rule 15 of the Drug (Import & Export) Rules, 1976. Pakistan Customs was of the view 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 license. —CT Report
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ISLAMABAD
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he Federal Board of Revenue (FBR) has failed in meeting the deadline of September 15 for the issuance of 0.850 million tax cards to tax payers. The tax cards were scheduled to be provided at the doorsteps of those taxpayers by mid-September who had Riled their tax returns by 2013 and tax cards
will have validity up to March, 2015. The said tax cards will replace the tax numbers and will be renewed every year and will be issued by Rirst of March each year to a person who meets the criteria. Moreover, the validity of taxpayer card will be one year, beginning on the date of issue and ending on the last day of February. Well placed source told Customs Today that the need to issue cards was felt after the introduction of tax incentives
for the return Rilers and government decided to issue taxpayer cards to return Rilers and publish active taxpayers list on a regular basis in an attempt to encourage documentation in the country. In the case of the returns Riled after December 31, taxpayer card will be issued within 60 days of Riling of return. Moreover, a person shall be issued taxpayer card if he/she has Riled a return under section 114 or a statement under section 115 for the tax year.
four years which conRirmed that the importer had been importing ETP instead of Electrical Silicon Steel Sheets. Moreover, the Customs Department discovered that the importer after he was exposed gave up the import of Electrical Silicon Steel Sheets in the name of Electrolytic Tin Plate at the Lahore Dry Port.
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12
SEPTEMBER 23 - SEPTEMBER 29, 2014
excise Dept computerises 287,000 properties in Sialkot, gujranwala
SIALKOT: The Excise and Taxation Department has computerised the record of 287,000 public properties in both Sialkot and Gujranwala districts under its upgradation plan. Now, the people of Sialkot and Gujranwala could check their properties’ record online. According to Director of Excise and Taxation Gujranwala Division Syed Ashiq Hussain Shah, the computerisation of the public properties would help in reducing the complaints of the people, besides eliminating corruption.
Collector Saleem outlines import, export procedure for IDeAS-2014 the respective Appraising group shall make assessment on the basis of declarations given in the documents CUStoMS toDAY RepoRt www.customstoday.com
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ollector of Model Customs Collectorate-MCC of Appraisement (West) Muhammad Saleem has issued an order in connection with the procedure for temporary import and subsequent export of Defence Exhibition Goods for IDEAS2014, which is scheduled to be held from December 1-4, 2014 at the Karachi Expo Centre (KEC). According to standing order, the procedures are prescribed to facilitate the clearance of goods to be imported and subsequently exported in pursuance of Ministry of Commerce’s permission vide letter No 20(5)/2009-Imp.I (15496; Special Exemption Order No. 03/2014 issued by the Federal Board of Revenue (FBR) vide letter C No 17(25)/2002. Cus. Exm; Defence Export Promotion Organization (DEPO)’s letter No. DEPO/2224/06/IDEAS-2014 regarding the 8th International Defence Exhibition and Seminar (IDEAS) to be held from December 1 to 4, 2014 at KEC. The Karachi Expo Centre (KEC) University Road, Karachi is declared as the Exhibition Site and Customs Examination area in terms of Section 80(5) of the Customs Act, 1969. As per the Standing Order, Defence Export Promotion Organization (DEPO) has appointed M/s Agility Fairs & Events (Pvt) Ltd, Karachi as sole ofRicial freight forwarder and M/s Agility Logistics (Pvt) Limited, Karachi (CHAL Number:2248) as sole ofRicial Customs agent to Rile the Goods Declaration (GD) for the exhibition “IDEAS2014”. No other individual/organization/clearing agent shall be allowed to act as freight forwarder and no other Customs agent/organization/individual shall be allowed to Rile GD for IDEAS2014. Defence Export Promotion Organization (DECO) shall issue Authorization CertiRicate for temporary import-cum-export in respect of each consignment imported for display in the above referred exhibition. Goods Declaration (GD) for Home Consumption bearing title “IDEAS-2014” with
complete description, quantity, value and leviable rates of duties & taxes along with authorization certiRicate, invoices and packing lists shall be Riled in the Model Customs Collectorates Appraisement (East/West), Karachi, Air Freight Unit (AFU), MCC-Preventive, Karachi and MCC-Port Muhammad Bin Qasim, Karachi as the case may be for the clearance and data entry of goods imported for the subject exhibition. The respective Appraising Group shall make assessment on the basis of declarations given in the documents and shall process the GD in terms of Chapter-9920 to the First Schedule to the Customs Act, 1969 under sub-section (2) of the Section 80 ibid, Serial No.57 of Table-I of the 6th Schedule to the Sales Tax Act, 1990 and relevant provision of Income Tax Ordinance, 2001 without collection of any customs duty, sales tax, FED and advance Income Tax. Container Number and Seal Numbers of the sealed containers shall be veriRied at the port in case of Containerized Cargo and marks & numbers will be veriRied in case of goods contained in the packages (LCL). Removal of the goods to the exhibition site shall be allowed under Customs Escort. The MCC-Appraisement (West) shall supervise the site for exhibition purpose. It will also serve as the
Coordinating Collectorate among all the concerned Collectorates. The Custom’s examination staff exclusively deputed for this purpose shall examine the goods 100per cent at the exhibition site under Section 80 (5) of the Customs Act, 1969 and make detailed inventory duly signed by authorized representative of DEPO, with a copy to the Assistant/Deputy Collector respective Appraising Group. M/s Agility Fairs & Event Logistics (Pvt) Ltd and ofRicial clearing agent shall be responsible for arranging the goods (Exhibitors/Consignment-Wise) for this purpose. All imported live ammunition to be used during Rire power displayed at PAF Firing Range Sonmiani/Naval Dockyard will be consigned in the name of Army Embarkation Headquarters Karachi (EHQ) and will be treated as Defence Cargo. Procedure already laid down for clearance of live ammunition as defence cargo will be followed. In case of passenger(s) arriving with the exhibition equipment, the same shall be allowed release by the Customs staff at the airport on the Authorization CertiRicate issued by the Defence Export Promotion Organization (DEPO) and after due endorsement on their passport. The details of these goods shall be recorded at the Exhibition premises immediately after their arrival at KEC
by the Customs, DEPO and M/s Agility Fairs & Event Logistics (Pvt) Ltd. At the time of departure, the Customs staff at the airport shall delete the endorsement from the passport in the light of certiRicate of clearance issued by DEPO after the fulRillment of formalities of Immigration. All Collectorates concerned shall depute exclusively staff for escort from where exhibits are imported/exported.
Container Number and Seal Numbers of the sealed containers shall be verified at the port in case of Containerized Cargo
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
— Exclusive Customs Today photo
KARACHI