Wednesday, 23 August 2017

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PAKISTAN’S FIRST INDEPTH NEWSPAPER ON CUSTOMS

Daily

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Karachi, Wed August 23, 2017

ISLAMABAD

M FAIZAN

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nder the Integrated Transit Trade Management System, the Federal Board of Revenue (FBR) needs a total of 141.5 acres of land at Wagah border. However, the government already owns

65 acre through National Logistics Cell (NLC).

Sources told Customs Today that project consultants have identified 76 acres of additional land to set up new export and import processing facilities.

However, instead of acquiring 76 acre land from farmers, the requirement of the land has been curtailed to 64.8 acres to avoid negative impact on residential areas, cattle farms and protect a

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school. Sources said that the project will be implemented in a way to protect the private properties.

Accordingly, the area involving acquisition of residential or commercial and community structures or residential and commercial land located in adjoining settlement is avoided and thus no physical displacement is envisaged as such.

The FBR will ensure that the land compensation to replacement value is agreed through negotiated settlement.

In case, negotiated settlement is unsuccessful, following normal land acquisition process under law.

FBR needs 141.5 acre to improve Wagah Border Crossing Project

Sukkur Customs eighteen cartons of cosmetics confiscated in crackdown

‘Cooperative relations with all stakeholders made my tenure successful’

Taiwanese tourist seized for smuggling weapons

Nine offending vehicles & smuggled goods worth Rs26.370m impounded

Under the Integrated TTMS the FBR needs a total of 141.5 acres of land | SEE PAGE 01 |

The ASO Hyderabad, has seized foreign origin 18 cartons of cosmetics valued | SEE PAGE 02 |

Newly transferred Collector of MCC Dr. Arslan Sebuktageen spent a successful | SEE PAGE 05 |

ATaiwanese man was barred from leaving Vietnam after he was caught boarding | SEE PAGE 07 |

ASO Peshawar took into possession various NDP goods along with six offending | SEE PAGE 08 |

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Customs Intelligence upgraded as directorate Wednesday, August 23, 2017

National

MULTAN: After having been upgraded as directorate, Customs (Intelligence and Investigations) Multan is going to shift its office to a new location with improved staff strength, officials said. The newly appointed director of Customs I&I Zulfiqar Younis has taken over the charge of the Customs I&I Multan directorate.

Moreover, an additional director and two assistant directors would also be deputed at the directorate. Earlier, Customs I&I was working under Customs I&I Faisalabad despite the fact that its jurisdiction covered a vast area stretching from Multan to Sindh and Balochistan borders.

Sukkur Customs eighteen cartons of cosmetics confiscated in crackdown

PESHAWAR

HYDERABAD

IRFAN BAHADUR

ASLAM ANJUM QURESHI

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he Customs staff at Torkham Gate aborted another smuggling attempt of 312 gram gold on Tuesday by following the directives of Deputy Collector Torkham Customs Station who had received a tip-off about the smuggler. According to official sources, Customs staff acted upon the information received about a man to have the gold in his bag traveling to Pakistan from Afghanistan. The Customs staff became alert to trace the smuggler for which they had to search everybody crossing the Torkham Gate on said day from early morning. In the mid noon, a man appeared with a bag in his hand. Smuggler Abdul Hadi was thoroughly searched and found with the said quantity of gold, so he was apprehended on the spot. A case was filed against him according to the Customs Act of 1969. This has been a second attempt frustrated by the Customs staff at Torkham during the month of August FY2017-2018 which will add extra amount to the revenue collection of this month. The Deputy Collector appreciated the Customs staff and remarked that the increasing attempts to smuggle gold, silver and other valuable goods predicts that the people on both sides of the border are in search of finding a way for smuggling goods.

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he Anti-Smuggling Organization (ASO) Hyderabad, Sukkur Customs Preventive, has seized foreign origin 18 cartons of cosmetics valued at Rs119200 lakh involving duties and taxes of Rs56501 during a crackdown.

Sources told Customs Today that the smuggled item was being smuggled into Pakistan.

The sources said Collector Customs Hyderabad Akhlaq Ahmad Khattaq received a tip-off regarding the smuggling of above said item.

He constituted a raiding team under the supervision of Additional Collector Rehmatullah Vistro.

The ASO team raided the premises of a goods transport company and intercepted a private vehicle and recovered imported non-dutypaid cosmetics.

The team asked the driver for the legal documents of the import and possession of goods but he was unable to prove anything lawful in this regard. The customs seized the item under the customs bylaws.

The ASO deposited the confiscated 18 cartons of cosmetics into the Sukkur State Warehouse. The ASO team comprised of Deputy Collector Mushtaq Ali Shahni, Assistant Collector Mumtaz Ali Ghangro including Inspectors, Sepoys, and Drivers which partici-

Customs Torkham foils smuggling attempt of gold into Pakistan

pated in the operation.

Officials said Hyderabad Customs Collector Akhlaq Ahmad Khattaq had directed that effective measures should be taken for curbing the smuggling in the region.

They added that the anti-smuggling officials have enhanced the vigilance on roads to keep an eye on the movement of the smuggling items and vehicles. Meanwhile, Additional Collector Rehmatullah

Vistro, while talking with Customs Today, said the department is striving to increase the surveillance of suspects in the region as more checkposts had also been established to foil the smuggling bids.

Govt endorses avoidance of double taxation accord with HK T

ISLAMABAD

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he federal cabinet has ratiPied agreement between Pakistan and Hong Kong for the avoidance of double taxation and the prevention of Piscal evasion with respect of taxes on income.

The approval was given at the federal cabinet meeting chaired by Shahid Khaqan Abbasi in Islamabad.

At the meeting the prime minis-

ter apprised the members about recent visit to Karachi and said Rs25 billion for Karachi and RS. 5 billion for Hyderabad under a comprehensive package for the development of both the cities were announced by him during his visit last Saturday.

He said that the development package will be implemented by the federal government under the policy and administrative supervision of the Governor Sindh; with Pixed time lines and costs.

While elaborating the package

for Karachi city, the prime minister said that one hospital and one medical college for Karachi, extension of green line metro to other areas, additional resources for new water projects, 50 fire tenders for KMC, series of underpasses and bridges to reduce the traffic mess will be constructed. The prime minister further said that under the package one university and one medical college for Hyderabad, grant for Hyderabad Municipal Cooperation and up-gradation of in-

frastructure of all industrial states will be carried out. These projects will be executed within the stipulated time, cost and transparently, said the Prime Minister. The prime minister stated that record funds have been disbursed to the federating units under the PML-N’s government. The prime minister also informed about the meeting he chaired during Karachi visit on law and order; in the wake of recent surge in street crimes in Karachi.

He said that the provincial govern-

ment has been asked to play its due role in the development work in the province in general and Karachi in particular. He reaffirmed all out support to the provincial government from the federal government in the development and ensuring peace and security in Sindh. The cabinet lauded the announcements from the PM during his visit to Karachi.

The federal cabinet approved the development package for Karachi and Hyderabad.

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Wednesday, August 23, 2017

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ISLAMABAD TARIQ DERYA www.customsbulletin.com

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ewly transferred Collector of Model Customs Collectorate (MCC) Islamabad Dr. Arslan Sebuktageen spent a successful tenure at the MCC Islamabad which will be remembered for long. He made the Car Cell operational, set up Canaan Centre, and a library at the MCC Islamabad. He seized 27 kg of gold and won many cases from the Supreme Court, High Court and Customs Tribunals. He cancelled the non-operational bonds.

The Federal Board of Revenue (FBR) accepted his proposal to ban halfcut and front-cut vehicles.

Giving an exclusive interview to Customs Today, former Collector MCC Is-

lamabad Dr Arslan said that during his period, he tried to form a team to improve performance of the MCC Islamabad. He praised all the lower and higher staff of the MCC Islamabad who worked day and night and shoulder to shoulder with him.

He said that he himself appeared before the honourable courts to settle multiple cases while he also introduced many initiatives at the BBIA Islamabad to improve its performance. During his era, he got two sniffer dogs from the ANF as gift and bought two other dogs to make Canaan Centre more perfect.

He added that he started airport patrolling by Customs staff so that notorious people cannot pass narcotics or other contraband items from outside the airport. He further said that

he made the Car Cell operational and seized about 100 more vehicles against corresponding period. Dr. Arslan also inaugurated a Staff Welfare Shop at the MCC and a library a swell.

Former Collector MCC Islamabad said that, during his time, the MCC Islamabad generated extraordinary revenue during FY2015-16 and FY2016-17 adding that the ASO Islamabad also showed outstanding revenues and seizures during his tenure. He got repaired all the old ammunition and bullet proof jackets and handed them over to the AntiSmuggling Squads, he reminded.

He further said he gave a proposal to the FBR for amendment in section 07 of the Customs Act which was accepted and added to the Budget FY2017-18. According to him, he maintained good relations among the Customs staff and the employees of the Federation of Pakistan Chamber of Commerce and Industry (FPCCI). He also engaged the clearing agents, so the business activity can be enhanced at the Islamabad Dry Port and Air Freight Unit.

Dr. Arslan told CT that he always appreciated the ‘open door policy’ so that he can serve the people and resolve their problems. He said he developed a cooperative relationship with all the stakeholders which made his tenure successful.

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Founder & Chairman Zulfiqar Ali Editor Rahil Yasin editor@customsbulletin.com.pk For advertising & subscription marketing@customsbulletin.com.pk www.customsbulletin.com Phones: 042-35781643-4, Fax: 042-35781645 Address: 627, Siddiq Trade Centre, Gulberg, Lahore

EDITORIAL

Not all is well with economy

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ccording to newspaper reports, Pakistan may not be eligible to get the World Bank loans in near future due to its inability to resist the speedy fall of foreign exchange reserves.The bank has reportedly declined a government request for a policy loan to adjust the exchange rates. However, a spokesman of the Finance Division has out rightly rejected the notion as incorrect, saying Pakistan has not filed any specific request for a policy-based programme. In his view the reports reflect a ‘sheer lack of information’ and the level of financial understanding between Islamabad and the World Bank. Currently, Pakistan and the World Bank are working on various projects and programmes, including policybased lending support within the framework of Country Partnership Strategy 2015-19 devised by the bank. Other reports suggest Pakistan will not be able to get financial assistance from the International Bank for Reconstruction and Development due to fast depleting foreign currency reserves. In principle, a country seeking IBRD loan should have foreign exchange reserves equivalent to three months of the import bill whereas Pakistan is at the bottom line of its reserves.

The reserves also include $3.9 billion in shortterm borrowings by the State Bank and it is feared the reserves will further fall to minimum levels.

This is the financial position of a country of 200 million and the current and former prime minister are not tired of claiming financial stability as hallmark of their political domination. According to experts, two months – August and September — are very critical for the country as the forex reserves are slipping below the threshold. The experts put the actual foreign currency reserves at $4.2 billion, which are peanuts for a big country like Pakistan and unfortunate part of a rising economy. The Finance Ministry puts the reserves at $14.398 billion which it deems adequate for three month imports, but the forex could even fall to $10.4 billion if shortterm forward contracts are excluded.

The financial position shows not all is well with the economy amid political turmoil.

Terrorism on east and west borders of the country is bad for the regional stability also.

The volume of remittances sent by expatriate Pakistanis is also shrinking and mismanagement is at its peak.

Chinese investment abroad A

LAHORE

DR AFTAB AFZAL

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ccording to newspaper reports, China’s National Development and Reform Commission has decided to curb ‘irrational’ investment on its various overseas mega development projects, including Belt and Road initiative, and restrict the local companies from investing abroad. However, the new guidelines would not affect the Chinese investment plans in Pakistan. Reports also suggest that Beijing would enhance healthy trade cooperation with other countries, but would curb corruption in the process of investment in over-

seas destinations. The government took the action after noting mergers and acquisitions

by Chinese companies in the countries involved in the Belt and Road initiative and the aim of the government is to restrict the outflow of the national capital.The Chinese companies have already invested more than $18.5 billion in 20 countries to build economic and trade zones whereas the Chinese acquisitions are spreading over 68 countries as part of President Xi Jinping’s Belt and Road initiative, covering a total outlay of $33 billion. The projects include high-speed railway in Indonesia and a crude oil pipeline between China and

Myanmar.

The China unveiled the Belt and Road project four years ago to boost trade and investment along two ancient routes –Silk Road, connecting China to Europe by land and sea and the second covers South East Asia and Africa. The role of Chinese companies is increasing despite government curbs on capital outflows. In a Belt and Road Initiative Summit in May last, the Chinese prime minister pledged $124 billion to partner the neighbouring countries for the plan.

There is a lesson for Pakistan. If the rules of the game can change in south East Asia, they also can also change here

and the government policymakers and stakeholders must have an alternative plan without blaming the friendly country for anything and questioning its sincerity. China is a trusted friend, but it has its own issues, interests and limitations and it cannot be blamed for change of rules. We have to establish cooperation in winwin situation and without compromising on the national interests. Without going blindly into business deals with China and other trade partners, there must be a fair adoption of policies and agreements. It is better to avoid a deal which is harmful for the interest of Pakistan or China at the long run.

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Big Saudi plans to reduce dependence on oil revenue Wednesday August 23, 2017

World

AMMAN: Facing a depressing prospect on oil revenue front, Saudi Arabia has drawn up ambitious plans to diversify its economy away from crude.

In the last month alone, the kingdom has announced two major developments one covering an area bigger than Belgium and another that will include an airport and shipping port.

These are in addition to its plans to build a series of economies cities special zones in logistics, tourism, industry and finance, an entertainment city and a $10 billion financial district.

Taiwanese tourist seized for smuggling weapons

Iraq secures $195 million Japanese loan for electricity BAGHDAD

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TAIPEI

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Taiwanese man was barred from leaving Vietnam after he was caught boarding with a large number of military weapons at Hochiminh city International Airport.

Customs ofPicials at Tan Son Nhat Airport stopped a 31-year-old Taiwanese man to check his luggage after he had acted suspiciously. In the luggage, police uncovered 79 new handguns, two military transmitters, a gas mask, used NATO military uniforms, and several rounds of AR15 ammunition and M79 grenades. He is now still held and waiting further questioning by the police. It is illegal to import or export military equipment into or out of Vietnam. The penalty for trafPicking or trading weapons ranges from one year to a life sentence.

French unemployment falls to 2012-low rance’s unemployment rate took another tumble in the second quarter, falling to its lowest level in five years as the eurozone’s secondlargest economy joins in the bloc’s wider recovery. The dip from 9.6 per cent to 9.5 per cent on the jobless rate will come as more welcome news for new president Emmanuel Macron who has made revamping the country’s labour market a priority of his five-year term in office. France has long suffered with double-digit unemployment since the eurozone’s sovereign debt crisis but has been enjoying a boost in job creation over the last year as business confidence has surged. The fall to 9.5 per cent in the three months to June was in line with forecasts but is still above the eurozone’s 9.1 per cent rate a 2009-era low. French unemployment fell by 20,000 in the quarter, said Insee. –CB Report

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Despite the risks, customs ofPicers have foiled various attempts to smuggle guns and bullets to and from the U.K., the U.S., and Turkey in recent years, as well as nearby countries such as Cambodia, South Korea, and Thailand.

Meanwhile, Two Taiwanese men were arrested at the city airport on Friday for allegedly smuggling 6 kg

gold bars worth Rs 1.77 crore. While one is a chemical engineer, the other has graduated in psychology , said customs ofPicials. The customs ofPicials’ suspected something Pishy when one of the accused, Lin Hung Yu (33), refused to pass his bag through the metal detector early in the morning.

His dePiance made the ofPicials insist that he follow their instruction.

Transocean Ltd (Switzerland) (RIG) dips 4.17 per cent

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mong the S&P 500’s biggest fallers on Wednesday August 16 was Transocean Ltd (Switzerland) (RIG). The stock experienced a 4.17% decline to $7.58 with 25.3 million shares changing hands. Transocean Ltd (Switzerland) started at an opening price of 7.92 and hit a high of $7.94 and a low of $7.47. Ultimately, the stock took a hit and Pinished the day at $0.33 per share. Transocean Ltd

(Switzerland) trades an average of 14.32 million shares a day out of a total 391.18 million shares outstanding. The current moving averages are a 50-day SMA of $8.46 and a 200-day SMA of $11.56.

Transocean Ltd (Switzerland) hit a high of $16.66 and a low of $7.55 over the last year. Transocean Ltd is an international provider of offshore contract drilling services for oil and gas wells. –CB Report

apan has agreed to lend Iraq up to $195 million for a project to help repair a thermal power station in the southern province of Basra, an Iraqi government statement said.

Though Iraq is a major OPEC oil producer, the country faces chronic electricity shortages, with its fragile grid struggling to meet demand after years of war, sanctions and neglect. The loan was signed during a visit to Iraq by Japan’s State Minister for Foreign Affairs, Kentaro Sonoura, who met Prime Minister Haider alAbadi on Saturday, the prime minister ofPice said in a statement.

Iraq needs external Pinancing to plug a budget dePicit of approximately 25 trillion Iraqi dinars ($21.44 billion) for this year as it grapples with lower global oil prices

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and costs associated with the Pight against Islamic State.

Meanwhile, The Knights of Columbus on Tuesday announced it will raise and donate $2 million to re-settle Iraqi Christian families displaced by the Islamic State in their home town of Karemlesh on the Nineveh Plain. “The terrorists desecrated churches and graves and looted and destroyed homes,” Carl Anderson, Supreme Knight of the Knights of Columbus, said in his Aug. 1 remarks announcing the $2 million project. “Now we will ensure that hundreds of Christian families driven from their homes can return to these two locations and help to ensure a pluralistic future for Iraq,” he said. In order for Iraq to have such a future, he said Christians must be treated as “free and equal citizens” and not suffer the “religious apartheid” of previous years. Anderson addressed the 135th annual convention of the Knights of Columbus held in St. Louis, Mo. Aug.1-3. 90 bishops and 12 cardinals were present, along with Knights councils from all over the world.

Imported rice brought in after duty cut he price of rice at importer level came down by Tk 2.50 per kg as the latest duty cut became effective yesterday following issuance of a circular by the National Board of Revenue (NBR). According to the circular, the rice import tariff was lowered from 10 percent to two percent. The move came a day after a cabinet committee meeting decided to cut the import duty to keep the rice price stable. Chitta Majumder, a rice importer, said their cost of rice import from India would come down to Tk 35.50 to Tk 36 from Tk 38 to Tk 38.50 a kg under the new tax

rate. Prices of coarse rice would come down below Tk 40 per kg within two to three days due to a cascading effect of the tax cut, Chitta, proprietor of Majumder Traders, told The Daily Star yesterday. The retail prices of coarse rice shot up to Tk 47-48 in JuneJuly, a 47 percent increase from last year’s price band of Tk 30-34.

However, the prices later stabilised at Tk 43-45, according to data of Trading Corporation of Bangladesh. The importer said they had been waiting for over a week on the announcement of the tax cut. –CB Report

Airbus slashes A380 superjumbo production

A DOHA

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irbus said it will almost halve production of its slow-selling A380 superjumbo, casting further doubt over the program’s future, while warning that engine glitches are still weighing on deliveries of the single-aisle A320 that’s

due to become its largest-volume model. The A380 build rate will be reduced to eight jets a year in 2019, down from 15 this year and 28 in 2016, Airbus said.

While the company aims to eke out the backlog in anticipation of revived demand as airports get busier, it said the handful of ongoing contract negotiations may not produce sales. “Even if we should get another

order before the end of the year that will not change the needle on our rate decision, except if we would get an unexpectedly high order, Chief Executive OfPicer Tom Enders told reporters. As the A380 struggles for survival, Airbus faces a host of issues with other models that it’s relying on for future earnings.

The revamped A320neo version of the narrow-body workhorse is a

major concern, Enders said, with fixes developed by engine supplier Pratt & Whitney proving unreliable, while talks are continuing with Qatar Airways after it canceled four planes citing quality issues and delays.

In contrast to Airbus, Boeing is already reaping the benePits of record industry backlogs as it ramps up output.

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Customs Intelligence recovers NDP electronics items FAISALABAD: The Customs Intelligence and Investigation has recovered smuggled electronic items worth Rs18,00,000 involving customs duty and taxes to the tune of Rs9,89,578 during a crackdown.

Sources told to Customs Today, that Deputy Director Customs Intelligence Syed Ittrat Hussain received information regarding the smuggling attempt.

He formed a customs team comprising Intelligence Officer Muhammad Siddique, Arshad Ali, Muhammad Saleem and Liaqat Ali, Mussdaq Ahmed, Muzamil Hussain, Bilal and Havaldar Muhammad Iqbal.

Wednesday, August 23, 2017

CUSTOMS BULLETIN

Nine offending vehicles & smuggled goods worth Rs26.370m impounded PESHAWAR TARIQ DERYA

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he Anti-Smuggling Organization (ASO) Peshawar took into possession various smuggling goods along with six offending and three Non-Duty-Paid (NDP) vehicles valued at Rs26.370million during 31st of July to 06th of August Financial Year FY2017-18.

According to details explained by Deputy Collector ASO Zakir Muhammad while talking with Customs Today that the ASO Peshawar seized 18,449 yard of foreign origin smuggled fabrics during above said period. The ASO conPiscated 4,692 kilogram of smuggled black tea, 16 foreign origin tyres, various smuggling auto parts and other different smuggling goods during above said period. Zakir Muhammad told CT that, during 31st of July to 07th of August FY17-18, the ASO Peshawar took into possession three NDP vehicles which include Toyota Premio, Model 2009, Toyota Vitz, Model 2006, and Toyota Premio, Model 2006, from Dara Ismiel Khan. During said period, the ASO Peshawar impounded six offending vehicles including Honda Civic car, Bedford

truck, two Toyota Corolla cars, Suzuki van and one Mercedes van.

He further said the ASO Pe-

shawar conPiscated 26.387 kilogram of gold/silver during July FY17-18 and showed tremendous perform-

ance which includes huge cases of miscellaneous smuggling goods and narcotics, impounding of 54 offend-

ing and NDP vehicles worth Rs224.640million while it arrested four smugglers during July FY17-18.

DC Asma Hameed serves notice on vehicle smuggler FAISALABAD

NAEEM SHEIKH

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he Customs Adjudication Deputy Collector Asma Hameed has issued a show cause notice to an accused involved in the smuggling of a Toyota Corolla X car.

As per details, Mianwali Anti Smuggling Organization (ASO) intercepted Toyota Corolla car bearing registration no: AMN-727

(Karachi), near M M Alam Road Mianwali and its owner was identiPied as Abdul Qadir. The owner failed to produce any legal documents regarding possession and import of above said vehicle.

ASO Superintendent Muhammad Javeed along with his team impounded the vehicle and sent the case to Customs Adjudication for further legal action.

Deputy Collector Asma Hameed served a notice to accused on violation of Section 10-A 89(1) and 156(1) of the Customs Act 1969.

The adjudication also ordered the accused to Pile his reply within

week. Asma Hameed directed the customs ofPicials that reply be submitted against the impounded vehicle case for further proceedings.

She also ordered ASO Deputy Collector (DC) Usman Tariq to attend the hearing on the scheduled date along with the relevant record.

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Meanwhile, The Field Investigation Unit (FIU) Sarai Muhajir of Customs Intelligence and Investigation has conPiscated foreign origin bitumen in 57980 kilogram worth Rs42,60,000 involving customs duty and taxes of Rs 60,00,000. According to details, Superintendent Muhammad Tahir received a tip off about some smuggling attempts. He immediately constituted a customs team comprising Intelligence OfPicer Ansar Saleemi and Muhammad Siddique. The team intercepted a trailer bearing registration GZRA1063 near Sarai Muhajir M.M Road district Bhakkar.