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he Asia-PaciPic Regional Review Group of the Financial Action Task Force (FATF) is coming to Pakistan from 13 to 16 August for onsite assessment of Pakistan’s measures taken against ant-money laundering and terror Pinancing issues. It is going to a crucial visit of FATF/APG in the wake of recent developments made by the western countries on anti-

money laundering and terror Pinancing issues .

The purpose of the Asia/ PaciPic Group on Money Laundering (APG) is to ensure the adoption, implementation and enforcement of internationally accepted anti-money laundering and counterterrorist Pinancing standards as set out in the FATF forty recommendations and FATF eight special recommendations.

The effort includes assisting countries and territories of the region in enacting laws to deal with the proceeds of crime, mutual legal assistance, conPisca-

Vol 3, Issue No. 23

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tion, forfeiture and extradition; providing guidance in setting up systems for reporting and investigating suspicious transactions and helping in the establishment of Pinancial intelligence units. The APG also enables regional factors to be taken into account in the implementation of anti-money laundering measures. Previously, the FATF/APG delegation visited Pakistan from 3-4 December in 2014 and held meeting with then Finance Minister, Senator Mohammad Ishaq Dar, and the Finance Secretary Dr Waqar Masood Khan.

No pressure or political interference will be applied on FBR: Asad Umar

Collector Customs Export recovers Rs6.20m from two defaulter Cos

FTO hears implementation appeal filed by M/s Hafiz Cotton Factory

NAB again summons Aleem, Chaudhrys

Quetta I&I foils bid to smuggle non-duty paid washing machines

Future Finance Minister Asad Umar has said that PTI govt will facilitate exporters | See pAge 02 |

Collector Customs Export recovered evaded amount of Rs 6.20 million | See pAge 03 |

FTO has remanded back the hearing of a casefiledbyproprietorofM/sCottonFactory | See pAge 04 |

NAB has again summoned PTI leader Aleem for Aug 8 in a case related to assets | See pAge 14 |

Customsfoiledtwosmugglingattemptsby seizingforeignoriginNDPwashingmachines | See pAge 16 |

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ASO seizes Rs3b non-duty paid cloth during FY17-18 Friday, August 3, 2018

Islamabad

ISLAMABAD: Federal Board of Revenue (FBR) received report of anti-smuggling department and Pakistan Rangers in which they have claimed seizures of Rs3 billions of cloths, 6.2 million liter diesel, 1,000 vehicles, 13kg of gold and foreign currency during fiscal year 2017-18.

Sources told Customs Today that these smuggled goods were seized on PakAfghan and Pak-Iran borders jointly by the anti-smuggling department and Pakistan Rangers.

no pressure or political interference will be applied on fBR: Asad umar

ISLAMABAD

ISLAMABAD

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ederal Board of Revenue’s (FBR) Integrated Transit Trade Management System (ITTMS) has started working for Central Asia Regional Economic Cooperation (CAREC) corridor for trade under the Central Asia Regional Economic Cooperation Regional Improving Border Services Project. According to official sources of FBR, One Window Information Communication Technology based system will be introduced for enhancement of trade among the Central Asian countries under this project.

The scanning, checking and clearance will be done through this one window Information Communication Technology based System for all the goods imported to Pakistan under this corridor as well as goods exported to central Asian countries under the corridor sources added.

Sources added that Federal Board of Revenue (FBR) is fully responsible for the implementation of ADB financed project and is the authorized body for the implementation of Integrated Transit Trade Management System (ITTMS) while for Project Monitoring Unit (PMU) is established in FBR head quarter for thorough monitoring of movement of trade under this project.

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uture Finance Minister Asad Umar has said that PTI government will facilitate exporters, industrialist and business community to promote the economy and create employment in the country. He expressed these views while talking with Customs Today.

He said there is no emergency plan to go to the IMF for new agreement.

All the policies related to Pakistan economy will be drafted on the advice and recommendation of all the stakeholders.

Asad Umar said that PTI-led government will make all institutions strong and independent and no political interference and pressure will be applied on any institution and especially on FBR. Federal Board of Revenue is backbone of the government and this is required absolute overhauling and FBR will be revived, he added. “Honest ofPicer will be appointed and zero tolerance policy will be adopted against corruption. Our government will also try to bring back the looted money and eradication of corruption is its Pirst priority.”

There will be no political victimization against any political party leader or worker, Asad Umar said , adding: “The time has come when we will have to live within the limit of our resources.”

fBR’s ittMS to enhance trade among central Asian countries

He said the new government will pay external and internal debts with the national resources. “Our country is facing economic challenges so there are serious threats to Pakistan economy and we will Pight with these challenges with the help of Pakistani business community.”

“Government will restore the trust of business community. Corruption is weakening the foundation of the country, the govern-

ment will not forgive them who has suck the blood of Pakistan either he is a politician or government servant, they all will be dealt with the law of the land.” He said that trend of increase in the price of US dollar as compare to Pakistani rupees was artificial and now the dollar is coming down to its original level and it will impact on Pakistan national debts.

Asad further said that Pakistan

is a self-reliance country. He also mentioned: “We have clear vision about the development of the economy and the country and I believe that Pakistan will touch new heights.” He said: “We need to promote our exports and for this we need to search new markets in traditional and nontraditional sectors. We will try to bring foreign investment to create new jobs for youth.”

fBR appoints Ali Raza Hungra as project Director of ittMS

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ISLAMABAD

SHAHiD MinHAS

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ederal Board of Revenue (FBR) has appointed Mohammad Ali Raza Hunjra, a grade 20 ofPicer of Pakistan Customs, as Project Director of Integrated Transit Trade Management System (ITTMS), it is learnt here. OfPicial sources told Customs Today that Ali Aza Hunjra will look after the project which is specifically designed for Wagha border,

Chaman and Torkham borders to curb smuggling and improve trade among the Central Asian countries under the Central Asia Regional Economic Cooperation Regional Improving Border Services Project.

Sources said that the project director will have all administrative and Pinancial authority regarding the project and he will perform his duty as project director till appointment of a permanent project director.

It is important to mention here that earlier the Integrated Transit

Trade Management System (ITTMS) has started working for Central Asia Regional Economic Cooperation

(CAREC) Corridor for Trade under the Central Asia Regional Economic Cooperation Regional Improving

Border Services Project, where one window Information Communication Technology based System will be introduced for enhancement of trade among the Central Asian countries. The scanning, checking and clearance will be done through this one window Information Communication Technology based System for all the goods imported to Pakistan under this Corridor as well as goods exported to central Asian countries under the Corridor, sources added.

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Employees of Karachi port terminal continue strike KARACHI: The Sindh High Court (SHC) issued notices to the customs officials and deputy attorney general on a constitutional petition filed by M/s Buksh Auto Mobile against enhancement of valuing of brake lining and friction material (clutch facing) as per valuation ruling of 1298/2018. While the hearing of petition, a two-member bench, headed by Justice Abdul Rasool Memon, directed them to file their para wise comments on next date of hearing During the hearing, counsel for the petitioner stated that it is engaged in the lawful import of Brake Lining and Friction Material (clutch facing) from China, Japan, Malaysia, Thailand, Indonesia and other countries.

pcA detects Rs7.58m tax evasion

by M/s tarah faheem chemicals

Friday August 3, 2018

Karachi

collector customs export recovers Rs6.20m from two defaulter cos

KARACHI

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he Directorate of Customs Post Clearance Audit (PCA) detected duties and tax evasion of Rs 7.58 million by M/s Tarah Faheem Chemicals, Korangi, Karachi and sent report to concerned adjudication department, it is learnt here. Sources told Customs Today that M/s Tarah Faheem Chemicals imported a consignment of different types of chemicals include fertilizers chemicals got it cleared from the QICT Karachi vide GD on November 17, 2017 by paying customs duty low at 6 percent after claiming the benefit of the SRO 548/2007. However, the subject items were correctly classifiable under the PCT 4785.2507 attracting customs duty at 10 percent and income tax at 8 percent.

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pcg submits interim charge-sheet in betel nuts smuggling KARACHI

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akistan Coast Guards submitted interim charge-sheet against suspects namely Muhammad Akram son of Muhammad Ramzan and Raza Muhammad son of Khan Mir, who were booked in a case of attempting to smuggle non-duty paid contraband betel nuts and others goods. Investigation officer Muhammad Humayun appeared before the customs court and submitted interim charge-sheet in which he stated that during the checking, officials of the Pakistan Coast Guards intercepted a Hino truck bearing registration number TK806 and during the checking recovered 12,630 kg betel nuts and other goods. He further informed that above mentioned suspects were asked to produce lawful documents of betel nuts and other goods.

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KARACHI

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ollector Customs Export Saqif Saeed on Tuesday recovered evaded amount of Rs 6.20 million from M/s Ali Sufyan Embroidery Fabric and M/s Alam Leather Handicrafts, Karachi.

Sources told Customs Today that on July 13 during scrutiny of the import data, it was revealed that M/s Ali Sufyan Embroidery Fabric availed undue benePits and concessions by importing a consignment of embroidery machines by misusing SRO 547. The consignment was cleared through Examiner Nadeem Taj on January 18, 2018.

Sources said that the company was allegedly involved in tax evasion of Rs 4 million. The Customs Export started investigations after detecting the tax evasion, a Pinal notice was issued to the company on July 20, 2018 to deposit the evaded amount within 14 days.

After receiving the notice, the management of M/s Ali Sufyan Embroidery Fabric deposited the evaded amount in the ofPicial account of the Customs Export on July 31, 2018.

While the management of M/s Alam Leather Handicrafts, Karachi also cleared Rs 2.20 million amount of taxes and duties. Sources said that M/s Alam Leather Handicrafts also availed undue benePits and concessions and avoided paying taxes

according to the customs bylaws.

The Customs Export authorities served it a Pinal notice on July 17, 2018. The management of M/s Alam Leather Handicrafts, Karachi deposited the evaded amount after receiving the Pinal notice in this regard.

Meanwhile, Collector Customs Export Saqif Saeed recovered evaded amount of Rs4.58 million taxes and duties from M/s Sabiha Knitwear, Karachi.

After receiving the notice, the management of M/s Ali Sufyan embroidery fabric deposited the evaded amount in the official account of the customs export on July 31, 2018

court seeks charge sheet of mobile smuggling case

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KARACHI

M.B RAnA

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he Customs Court directed customs ofPicials to submit Pinal charge sheet against suspect namely Shakil Ahmed son of Muhammad Sharif, who was booked in a case of attempting to smuggle non duty paid 244 foreign origin mobile phones.

Investigation ofPicer Munir Hussain Iqbal appeared before the court and

sought further time to Pile Pinal charge sheet, therefore, court granted his request and adjourned the matter. Earlier, investigation ofPicer informed the court that customs ofPicials intercepted the above mentioned suspect at the International Arrival Lounge of Jinnah International Airport Karachi holding Pakistani passport arrived from Dubai via Muscat by M/s Salam Airline’s Plight no OV-0265 and checked his luggage.

He further informed the court that during the search customs team recovered 203 Samsung mobile phones (used),

23 Moto mobile phone and 18 Sony mobile phones from above mentioned suspect total valuing to $22,350. He further informed the court that after the formalities, said accused and mobile phones taken custody into customs ofPicials and case was registered against him for violation of section 2 (s) 16 & 139 of the Customs Act, 1969 punishable under clauses (8) (89) & (70) of Section 156 (i) ibid. read with baggage rules notiPied vide SRO-666(I)/2006, dated 28/06/2006 & Section 3 (iii) of Import & Export (Control) Act, 1950.

Sources told Customs Today that during scrutiny of the import data, it was revealed that M/s Sabiha Knitwear, Karachi availed undue benefits and concessions by importing a consignment of imported wall paint by misusing the SRO 543. The consignment was cleared through Examiner Shahbaz Ali on December 22, 2017. Sources said that the company was allegedly involved in tax evasion of Rs 4.58 million.

Rupee recovers by Rs2.30 against dollar he Pakistani rupee recovered against the US dollar both in open market and interbank.

As per the local money market, the dollar lost Rs2.30 in open market for buying at Rs127.30 and for selling at Rs128.30, while the dollar recovered 40 paisas in interbank for buying at Rs128 and for selling at Rs128.20.

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Customs Court extends remand of accused involved in smuggling Friday August 3, 2018

Lahore

LAHORE: The Special Federal Court of Customs Taxation and Anti-Smuggling has approved physical remand of accused for three days who was arrested from Lahore awhile making attempt to smuggle mobile phones worth Rs 2 million.

According to details available to Customs Today the Customs Investigation and Prosecution (I&P) team produced the accused Touqeer before the court to obtain his physical remand for further investigation.

On request of the customs team, special court approved his remand for three days.

Rs100m heroin smuggling: fto hears implementation appeal court records statement filed by M/s Hafiz cotton factory of customs inspector LAHORE

LAHORE

M iMRAn MeHAR

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ession Court Additional Session Judge Shahid Bashir Chaudhary has issued arrest warrants of two customs officials who are also witness in a famous case of a Czech model who was caught red handed while making an attempt to smuggle a huge quantity of heroin worth Rs 100 million in international market.

On Tuesday court also recorded statement of one official of customs Inspector Din Muhammad of Customs Traffic Section. During hearing of the case judge of the special court said that all wittiness must be present in the court during next hearing otherwise stern action will be taken.

china to give pakistan $2b loan hina has agreed to immediately give a $2 billion loan to Pakistan, which will be categorised as an “official bilateral inflow”, said sources in the Ministry of Finance and the State Bank of Pakistan (SBP). They said that over $1 billion has already been transferred to the SBP accounts this week, and would reflect in the reserves’ data to be released on August 2. The amount will push SBP-held foreign currency reserves past $10 billion. Earlier this week, the SBP reported that official foreign currency reserves had fallen to $9 billion for the period ending July 20. SBP chief spokesperson Abid Qamar did not respond to the question of whether Pakistan had already received $1 billion of the $2 billion official bilateral inflow.

The Ministry of Finance also did not officially comment on the development. But a senior official confirmed on condition of anonymity that one friendly country has agreed to provide $2 billion as an official bilateral inflow. –CB Report

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On Tuesday hearing accused model said before the court she is missing her family and started crying in the court. In previous hearing court recorded the statements of three customs employees in heroin smuggling case and the case was adjourned for next hearing. Court has strictly directed the customs officials to make sure their presence before the court during next hearing for recording of statements.

According to the details, accused Czech lady and his facilitator Shoaib Hafeez were also present in court hearing. Customs officials were summoned by the court to record their statements. Customs Inspector Saleem Ahmed Malik, Incharge Customs Godown Yousaf Khan recorded completed their statements. Inspector Naheed Akhtar, Inspector Shahid resumed to record their statements.

SAJiD nAwAZ

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he Federal Tax Ombudsman (FTO) on Friday has remanded back the hearing of a case Piled by proprietor of M/s HaPiz Cotton Factory against the Regional Tax OfPice (RTO) Sargodha until the next hearing.

According to the details, FTO Advisor Mian Munawar Ghafoor heard the case in which the counsel for the appellant argued that the RTO Sargodha has not released the refund to the appellant from last two years.

He said that the RTO Sargodha collected excessive tax from the appellant during last two years. The company approached the ofPicer concerned many times for issuance of refunds but the department did not pay the refunds after the passage of a reasonable time.

customs court extends remand of accused involved in smuggling

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The Special Federal Court of Customs Taxation and AntiSmuggling has approved physical remand of accused for three days who was arrested from Lahore awhile making attempt to smuggle mobile phones worth Rs 2 million.

According to details available to Customs Today the Customs Investigation and Prosecution (I&P) team produced the accused Touqeer before the court to obtain his physical remand for further in-

vestigation. On request of the customs team, special court approved his remand for three days.

Earlier Customs Preventive team searched passenger Touqeer who was using green channel and from him recovered Rs 2 million used mobile phones of assorted types besides accessories including memory card and other such items. The passenger was arrived from Doha and wanted to smuggle the illegally imported mobiles worth Rs 2 million in the country. –CB Report

Finally, the appellant decided to approach the Federal Tax Ombudsman (FTO), seeking interference in this case. The counsel appealed the FTO advisor to direct the commissioner of RTO Sargodha to clear the refund claims. The counsel further said that the delay in issuance of refunds put burden on the taxpayers,

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adding that the RTO should make audit of the cases and release the extra amount collected by it from the taxpayer. After hearing the arguments from both sides, FTO Advisor adjourned the case and directed the parties to appear on the next date of hearing to present arguments in the case.

tribunal reserves verdicts of two appeals ustoms Appellate Tribunal division bench-II comprising member judicial Omar Arshad Hakeem and member technical Saud Imran Ahmed heard thirteen cases on Tuesday. Customs Appellate Tribunal reserved verdicts of two cases. Division bench heard appeals of M/s Bismillah Purse versus Customs Lahore two appeals, Collector Customs Lahore versus Punjab Impex, Salman Butt versus Customs Lahore, Directorate of I&I Faisalabad versus Tahir Rauf. Collector customs Faisalabad versus Muhammad Nasir, Master Link versus Customs Lahore, Ahmed Khan

Kakar versus Customs Multan, Muhammad Jaffar versus Customs Multan. Furthermore, same bench heard appeals of Sardar Ali versus Customs Faisalabad, Muhammad Tariq Shiekh versus Directorate of I&I Lahore, Jamshed Ali versus Customs Lahore and Collector Customs Lahore versus Al-Tawakal Agencies. In two appeals Piled by Directorate General of Intelligence and Investigation (I&I) Faisalabad versus Tahir Rauf and collector Customs Lahore versus M/s AlTawakal Agencies the verdicts were reserved and decision will be announce later on. –CB Report

fBR motivates property dealers to avail tax Amnesty Scheme

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LAHORE

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ederal Board of Revenue (FBR) organized a seminar on ongoing Tax Amnesty Scheme which was held at Defence Club. Large number of investors and property dealers participated in the seminar.

The basic purpose of the seminar

was to create awareness among business community about the benePits of Tax Amnesty Scheme 2018 and apprise them about the benePits of the scheme. The seminar was organized by Regional Tax OfPiceII and renowned businessmen of the region participated in the awareness and motivational session to avail the tax amnesty scheme to legalize their hidden assets which

exist within and outside the country. In the seminar Commissioner Zone-II Dr. Sarmad Qureshi, Additional Commissioner Ghazala Hameed Razi, Deputy Commissioner Essam Anwar Khokhar, spokesperson on tax amnesty scheme Deputy Commissioner Muhammad Suliman and other also participated along with investors and property dealers. On the occasion,

Commissioner Inland Revenue (CIR) Dr Sarmad Qureshi was specially invited to give briePing to the participants and answer the questions of taxpayers. Addressing the participants, commissioner Inland Revenue said that tax amnesty scheme is unique and it is the Pirst time in the history of Pakistan that FBR announced such scheme to legalize hidden assets at minimum tax rates.

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KARACHI

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few shipping lines, their agents with connivance of PICT are blackmailing importers to get additional demurrage and detention charges in sheer violation of the terms agreed between both parties. These shipping lines with the help of some senior customs ofPicials are robbing businessmen to the tune of Rs 15 billion per year. Importers have Pinally knocked the doors of law to get speedy justice.

Sources said innocent importers of Pakistan get trapped by seeing these low rates offered by agents of these shipping companies. When the goods are given to the shipping lines in China then they do not give back the goods to importers at Pakistani ports.

They start demanding additional very high demurrage and detention charges. Law under SRO 1220(I)/ 2015 explains that shipping companies cannot charge any demurrage and detention where speciPically it is not agreed and also speciPically not mentioned on the B/L (Bill of lading).

As per details, “importers, through their shipper/agents in China, handed the goods to KMTC Ltd. as trust to be delivered and released here at PICT, Karachi. The shipping lines nominated M/S

United Marine Agencies (Private) Limited as their agents at Karachi for the same while the company PICT Ltd. took custody of the goods as trust at PICT port, Karachi. Importers also long back paid in full to the shipping lines the ocean freight charges as agreed between the parties. But despite repeated reminders and visiting ofPice of M/S United Marine Agencies (Private) Limited and of PICT Ltd., they did not release the goods yet”.

Importers told Customs Today, “they are suffering heavily daily due to non-availability of their goods, along with reputation loss & loss of customers, etc. and also the goods quality is deteriorating daily which leads to total loss very soon if the goods are not disposed in the markets”.

Importers said, “The actions of KMTC Ltd. through its owners, management and staff including but not limited to Jong Seug Park, Yong Hwa Shin, others and of M/S United Marine Agencies (Private) Limited through its owners, management and staff including but not limited to Manzoor Ahmed, Lars Tore Bergstrom, Lars GoranSafverstrom, Mohammad A Dhamee, Sohail Shams,Rishad Kirmani, MohsinLodhi, others and of PICT Ltd. through its owners, management and staff including but not limited to Haleem Siddiqui, Christian R. Gonzalez, Roman Felipe S. Reyes, Aasim Azim Siddiqui, Rafael D. Consing Jr., Gordon Alan P Joseph, Hans-

Ole Madse Aziz Khan Shujaat H tantamoun cheating, etc. which 407, 409, Importers goods as t these com blackmail and thus t wealth thr In anothe through th green Line them here The shipp Shipping Karachi fo Ltd. took port, Kara to the ship agreed be reminders Shipping ( did not re Importers

Friday, August 3, 2018

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en, Sharique Azim Siddiqui, Khurram n, Muhammad Hunain, Junaid Qureshi, Hussain,others, individually and jointly, nt to conspiracy, criminal breach of trust, mischief to cause losses, threatening, h attract penal sections under PPC 34, 420, 427, 506, besides others.” s told Customs Today that they give trust (amaanat) to the shipping lines but mpanies hold their ‘amaanat’ illegally and l them to pay heavy amounts of charges these shipping lines & agents make good rough criminal means. er similar incident, “Importers Pirm, heir shipper, handed the goods to Evere as trust to be delivered and released to e at PICT, Karachi. ping lines nominated M/S Greenpak (Private) Limited as their agents at or the same while the company PICT custody of the goods as trust at PICT achi. Importers also long back paid in full pping lines the ocean freight charges as etween the parties. But despite repeated s and visiting ofPice of M/S Greenpak (Private) Limited and of PICT Ltd., they elease the goods yet”. s said, “The actions of Evergreen Line

through its owners, management and staff including but not limited to Chang Cheng-Yung, Chang Kuo-Hua, Chang Kuo- Ming, Ko Lee-Ching, Lee Mong-Jye, Hsieh Huey-Chuan, others and of M/S Greenpak Shipping (Private) Limited through its owners, management and staff including but not limited to Javed Iqbal, Mohammad Reza Ghaem Maghami, Safdar Hussain Mehkri, Syed Qamar ul Hasan, Abdul Hamid, others and of PICT Ltd. through its owners, management and staff including but not limited to Haleem Siddiqui, Christian R. Gonzalez, Roman Felipe S. Reyes, Aasim Azim Siddiqui, Rafael D. Consing Jr., Gordon Alan P Joseph, Hans-Ole Madsen, Sharique Azim Siddiqui, Khurram Aziz Khan, Muhammad Hunain, Junaid Qureshi, Shujaat Hussain, others, individually and jointly, tantamount to conspiracy, criminal breach of trust, cheating, mischief to cause losses, threatening, etc. which attract penal sections under PPC 34, 407, 409, 420, 427, 506, besides others.”

Importers have Pinally lodged complaints against these shipping lines, their agents and PICT and approached FIA and NAB so that these fraudsters are stopped to blackmail genuine importers by demanding ‘illegal’ additional charges.

Importers further revealed that another section 14A of the Customs Act, 1969 says the port (like

PICT port) cannot charge any demurrage or detention charges if Customs gives a certiPicate to importer called the ‘delay and detention certiPicate’.

But despite this certiPicate, PICT illegally holds goods of importers and charges them heavy amounts as demurrage.

A source from a shipping line told Customs Today that around Rs 15 billion is illegally earned by the shipping companies and the ports like PICT per year. Documents received by CT show active connivance of shipping companies like Evergreen line, KMTC and the agents of these shipping lines here in Pakistan like Greenpak shipping for Evergreen Line and United Marine Agencies for KMTC along with the connivance of PICT. Sources said, in fact, the shipping lines should at least have a small ofPice in Pakistan because they are taking thousands of containers from Pakistan importers but they do not have such ofPice here rather only small agents are working in Pakistan who harass the importers by saying that ‘we are only agents and not parent shipping lines so if you have some problems then go to the parent shipping lines and ask for your containers’.

Importers appealed to the NAB and the FIA to take prompt action against this scam jointly planned and executed by shipping lines, their agents and PICT.

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fitch revises pakistan’s ratingstonegative

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n its recent announcement, Fitch Ratings has downgraded the outlook on Pakistan’s long-term foreign and local currency issuer default ratings to negative and has affirmed ‘B’ rating on the grounds that the gains that the country had made under three-year extended fund facility programme of the International Monetary Fund had been partial reversed. The loan programme was completed in September 2016 to boost foreign currency reserves and achieve microeconomic stability. However, the government failed on both the accounts.

The foreign exchange reserves have come down to $17 billion and microeconomic stability has lost somewhere in the middle of political polarization. Though Fitch ratings are mere predictions about future events which could not be verified as facts, its calculations are based on official and non-official documentation which it collects from independent auditors, attorneys and other experts to produce issuer default ratings. The findings of Fitch Ratings give the fund managers a chance to outlook into positive and negative aspects of the economy. Unfortunately, the assessments presented by local think-tanks and foreign rating agencies are never taken seriously by policymakers. The government has already floated international bonds to alleviate pressure on finance and economy, but experts look Pakistan as the potential customer of the International Monetary Fund. Soon after assuming the office, the government of the Pakistan Muslim League-Nawaz sought a loan of $6.2 billion under the programme to help prop up shrinking foreign currency reserves. But the step fired back as the government has failed to stop depreciation of the local currency, tax rebates on exports and rationalise import duties of non-essential goods. On another note, the country is passing through political uncertainty, which prevents the government from taking any long term decision. Fitch predicts the overall reserves of the country could fall to $16.8 billion at the end of the current fiscal year from $22.6 billion two years ago. It says the reserves could further fall if rupee remains stable and macroeconomic policies are tightened to restrain imports.

global direct investment T

LAHORE

cuStoMS BuLLetin RepoRt www.customstoday.com

he Pigures claimed by the Board of Investment show the country received nearly $1.38 billion foreign direct investment during the Pirst six months of the current Piscal year in a situation when the global direct investment fell by 16 percent during the previous Piscal year.

Most of the investment came from China though various European countries, including the United States also invested in Pakistan.

When Plow of investment steadily went up in several developing countries, including India, Bangladesh and Vietnam, Pakistan received moderate inPlow of

foreign cash during the period.

The developing economies in the region have not only achieved macroeconomic fundamentals, but also accelerated their growth rate by providing tax concessions and bringing paradigm shift in their economic policies. When the global Plow of direct investment is expected to reach $1.8 trillion this year, the developing economies are ready to further boost their growth rate and business conPidence in the emerging situation. The corporate sector and multi-national companies are always ready for investment if they are provided tax concessions and business friendly environment. Bangladesh is the best example of bringing basic

changes in its economic policies and attracted investment not only from developed economies, but also from the developing countries like Pakistan.

At a time various major economies are facing monotony and high cost of production due to expensive labour, Pakistan can benePit from the situation if it introduces structural reforms in taxation system and basic changes in its economic policies.

However, some reports suggest the global gross domestic product growth will edge up to 3.1 percent and most developed nations are likely to get lion share of foreign direct investment. The United States will be the largest recipient of the foreign direct in-

vestment as it is expecting $311 billion this year followed by China which will receive $144 billion. If Pakistan wants to become hub of the global investment, it will have to open its land for foreign investors. The global investment interest in Pakistan will ensure not only security of Pakistan, but also prosperity of its people. Apart from introducing tax holidays, there is a need to minimize militant face of Pakistan. All the foreigners, who are staying and overstaying in Pakistan, must be regulated in a proper manner and their movement should be restricted. The legal and illegal immigrants are the biggest threat to the national security and the national economy.

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Importers approach SHC seeking release of imported vehicles KARACHI: Importers on approached the Sindh High Court (SHC) for seeking release order of their imported Hino truck and other vehicles seized by customs department due to alleged disputed valuation. on Counsel for the petitioners, including Amir Muhammad, Amir Nawaz Khan and others, stated in their separates constitutional petitions that they are law-abiding citizens and in the normal course of business and they imported used Hino trucks and other vehicles under personal baggage scheme and has never been indulged in activities in derogation of law.

Counsel argued that after imported vehicles, they filed Goods Declarations (GDs) for clearance of their vehicles; however, they were informed by the customs officials that their vehicles were seized due to disputed valuations.

pcA detects tax evasion of Rs11.82m

by M/s Mattni Steel works gharoo KARACHI

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irectorate of Customs Post Clearance Audit detected duties and tax evasion of Rs11.82 million by M/s Mattni Steel Works, Gharoo, it is learnt here.

Sources told Customs Today that M/s Mattni Steel Works, Gharoo imported consignments of steel sheets and different type of scrape, damage steel nut bolts and got it cleared from QICT Karachi on 29th November, 2017, by paying customs duty at 8 percent after claiming the benefit of the SRO 552/2007. However, the subject items were correctly classifiable under the PCT 2548.3804 attracting customs duty at 12 percent and income tax at 8 percent, thus, by way of mis-declaration of classification, the company evaded/short paid Rs11.82 million. The goods were

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Friday August 3, 2018

National

13 commodities prone to smuggling, preventive’s study reveals T

KARACHI

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he Model Customs Collectorate (MCC) Preventive, in its study on smuggling, has revealed alarming statistics for the country.

The MCC investigated 13 commodities prone to smuggling in Pakistan, for Piscal year 2014 and came to the conclusion that 11 of them were severely impacted due to illegal trade. The Collectorate estimated that 59% of the total demand for products of over half a dozen sectors of the formal economy, including petroleum, tea, mobile phones and auto parts industry, is met through illicit trade of smuggled goods.

The development is in part an explanation as to why Pakistan continues to suffer from low tax revenue, a difPicult growth path, and failure to attract investment across various formal sectors.

The MCC Preventive, Karachi report, which was last updated in May 2015, stated, “Approximately 59% of the demand for tyres was satisPied through illegal channels and may have been met through smuggling.”

The customs ofPicial said this was the latest report on smuggling in Pakistan, as the concerned department updates the report once in two to three years. “Around 47% of the demand for tea was satisPied through illegal channels,” it stated and added the share of smuggled mobile phones in the total demand stood at 59%, while the rest was met through formal imports, as the country does not domestically produce cellular

phones. The report stated, “The share of smuggled televisions stood at 57%, while the rest of the demand was met through domestic production (37%) and imports (6%).” The share of smuggled auto parts in the total demand stood at 57%, while the rest of the demand was met through domestic production (18%), imports (16%) and counterfeit (9%).

Around 10% demand for steel sheets is met through smuggling, 87%

though formal imports, while rest is met through through domestic production. Similarly, 12% demand for vehicles is met through smuggling, 67% through domestic production and remaining 21% through formal imports. The prevailing demand for fabrics was met through 17% smuggling, 58% domestic production and the rest 25% through imports, while the smuggling of diesel carries a share of 33%.

court grants bail to manager of M/s Allied Xpert Logistics cleared by Examiner Sarwar Aiwan.

Sources told that the importer violated the provisions of Section 85 (3-A) of the Customs Act-1969, Section 22 read with Section 78 of the Sales Tax Act-1990 and Section 13 of Income Tax Ordinance 2001 punishable under clauses (548) of Section 12(3) of the Customs Act-1969, Section 4 of the Sales Tax Act-1990 and Section 69 of Income Tax Ordinance 2001 and Section 2-B of the Sales Tax Act-1990 read with chapter Y of the Sales Tax Special Procedure Rules 2007 (Special procedures for payment of sales tax by the importers) and under relevant provisions of Income Tax Ordinance 2001.

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he Customs Court granted interim pre-arrest bail to suspect namely Muhammad Hassan, Operation Manager, M/s Allied Xpert Logistics, who was booked in tax evasion cases.

On July 31, 2018, counsel for the above mentioned suspect argued that his client is innocent and was falsely implicated in this case, who is ready to face trail, therefore, court may grant him bail till Pinal judgment of this case.

After the hearing, court granted him bail against the surety of Rs3,00,000 and directed him to appear on next date of hearing for conformation or otherwise.

According to the investigation ofPicer of Customs Appraisement in-

formed the court that on credible information, customs ofPicials approached to M/s AL-Hamd International Container Terminal, Karachi, where the container were landed, during the physical examination recovered mobile phones, batteries, thus authenticated the information earlier received and corroborated

further information that once the information regarding the blocking of the consignments have been revealed to the importers/ allied they would endeavour to either Pile a misdirected goods claim or try to replace the pallets with similar packing pallets to be imported or replaced by some other method in

connivance with the AICT staff subsequently. Investigation ofPicer informed the court that accused imported assorted model and brand mobile, tablets and batteries in the garb of t pallets disperse dyes code of goods 3204.11 and 4 pallets refrigerator parts code of goods 8418.99 and duties and taxes involved in millions of rupees. Case was registered for violation of 2 (s), 16, 32, 43 to 45, 138, 155D, 155E, 155H, 1551 and 178 of the Customs Act, 1969, read with SRO 566 (1)/ 2005 dated 06/06/2005 and Section 3 (1) of the Imports and Exports (Control) Act, 1950 punishable under clauses 8, 9, 14, 100 & 101 of Section 156 (1) of the Customs Act, 1969, read with section 3 (3) of the Sales Tax Act, 1990 and Section 148 of the Income Tax Ordinance 2000, further read with appendix-B of import policy order.

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Pakistan to increase olive production soon Friday August 3, 2018

National fto seeks record of appeal filed

by M/s iftekhar ice factory

ISLAMABAD: A plan has been prepared to increase olive production and make Pakistan one of top ten Olive-producing countries. The spokesman of Punjab Agriculture Department said, this project will help in ending the Olive imports.

He said that the department has decided to convert Chakwal valley into an Olive valley by promoting the Olive cultivation there.

He said that two million Olive plants will be distributed in Punjab during next ďŹ ve years free of cost, Radio Pakistan reported.

pcA detects Rs9.25m tax evasion by M/s Amir chemical industries thattha

LAHORE

SAJiD nAwAZ

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KARACHI

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he Federal Tax Ombudsman (FTO) sought relevant record from parties of appeal filed by proprietor of M/s Iftekhar Ice Factory against the Regional Tax Office (RTO-II) Lahore. During the proceedings of the case, the counsel for the appellant argued that the RTO-II had failed to release the sales tax refund to the appellant for the last two years. He said the RTO-II collected excessive taxes from the company during the last two years.

The petitioner approached the officials concerned several times for the release of refunds, but the RTO officials failed to clear refunds after the passage of a reasonable time.

Finally, the appellant decided to approach the FTO, seeking intervention in this case. The counsel appealed the FTO advisor to direct the RTO-II to clear the refund claims at the earliest.

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fBR to establish two new research units to broaden tax net ederal Board of Revenue (FBR) will establish two new research units to broaden the tax net and trace the tax evaders. Sources told Customs Today that the research units will be established with collaboration of World Bank’s Trust Funds which basically aim to expedite the implementation of tax growth and reforms. Sources also said that the board has decided to hire two consultants for these research units and for this purpose FBR chairperson Rukhsana Yasmeen has constituted a high-level committee to appoint the consultants. While these two research units will work for the information technology and financial and tax policy analysis wings to improve the capacity building of these two wings.

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he Directorate of Customs Post Clearance Audit detected duties and tax evasion of Rs 9.25 million by M/s Amir Chemical Industries, Thatta, it is learnt here.

Sources told Customs Today that M/s Amir Chemical Industries, Thatta imported two consignments chemicals and material (used in leather manufacturing, and commercial use) and got it cleared from the QICT Karachi on 7th November, 2017, by paying customs duty at 8 percent after claiming the benePit of the SRO 569/2007.

However, the subject items were correctly classiPiable under the PCT 2547.3804 attracting customs duty at 12 percent and income tax at 8 per-

cent, thus, by way of mis-declaration of classiPication, the company evaded/short-paid Rs9.25 million. The goods were cleared by Examiner Zahid Mujahid. Sources told that the importer violated the provisions of Section 34 (59-A) of the Customs

Act-1969, Section 24 read with Section 48 of the Sales Tax Act-1990 and Section 11 of Income Tax Ordinance 2001 punishable under clauses (241) of Section 12(6) of the Customs Act1969, Section 9 of the Sales Tax Act1990 and Section 36 of Income Tax

Ordinance 2001 and Section 2-B of the Sales Tax Act-1990 read with chapter Y of the Sales Tax Special Procedure Rules 2007 (Special procedures for payment of sales tax by the importers) and under relevant provisions of Income Tax Ordinance 2001.

fBR orders field formations to recover evaded St amount of Rs1120.98 million F

ISLAMABAD

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ederal Board of Revenue (FBR) ordered to 16 Pield formation including Karachi, Peshawar and Faisalabad to expedite efforts for recovery of Rs1120.98 million under the head of sales tax from 905 tax payers acting as withholding agents.

Sources told Customs Today that Federal Board of Revenue received credible information that dozens of registered companies and non-registered persons are not paying sales tax on prescribed rates with the help of withholding agents. According to Rule, 2 (2) and 2 (3) (i) of the sales tax special procedure (withholding tax) rule, 2007 a withholding agent was required to deduct an amount equal to one Pifth of the total sales tax shown in the sales tax invoice issued by a registered person and on

purchase of taxable goods from nonregistered person, was required to

deduct sales tax at the applicable rate of the value of taxable supplies

made to him from the payment due to the supplier.

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Customs Court extends remand of suspects involved in gutka smuggling KARACHI: The Customs Court extended physical remand of suspects namely Roi Muhammad son of Faiz Muhammad and Sadeeq Ullah son of Usman Ghani and sent them back to Pakistan Coast Guards. The suspects were booked in a case of attempting to smuggle non-duty paid One 2 One Gutka and other contraband goods.

Investigation officer produced the above mentioned suspects before the court and informed that during the checking, officials of the Pakistan Coast Guards intercepted a Hino truck and during checking recovered 9222 packets Gutkha and others contraband goods.

court approves physical remand of accused involved in betel nuts smuggling KARACHI

M.B RAnA

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he Customs Court sent suspect namely Asghar Ali Mallah son of Noor Muhammad Mallah to Coast Guard Karachi on physical remand, who was booked in a case of attempting to smuggle non-duty paid 600 kilogram betel nuts. Humayun Subedar, investigation officer produced the above mentioned suspect before the court and informed that on credible information, Subedar Muhammad Arif intercepted a pick-up Suzuki bearing registration number KW-233 and during the search recovered 600 kilogram nonduty paid betel nuts. He further informed that during the search, accused was asked to produce lawful

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documents, however, he did not produced any lawful documents, therefore, after the formalities, said goods, Suzuki and accused was also taken into custody. He said that prosecution needs further investigations from said accused, therefore, court may send them back to coast guard for physical remand and progress report would be produced before the court on next date of hearing. After the hearing, court sent him to Coast Guard on physical remand and directed investigation officer to produce him on next date of hearing along with progress report. According to the prosecution, case was registered against him for violation of under Section 2 (S) R 16 and 156 (1) (8) (89) and 157 of the Customs Act, 1969.

National

iHc issues notice to fBR on tax matter filed by M/s pakistan Mobile communication Ltd

SHc issues notices on petition filed by M/s Buksh Auto Mobile KARACHI

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he Sindh High Court (SHC) issued notices to the customs officials and deputy attorney general on a constitutional petition filed by M/s Buksh Auto Mobile against enhancement of valuing of brake lining and friction material (clutch facing) as per valuation ruling of 1298/2018. While the hearing of petition, a two-member bench, headed by Justice Abdul Rasool Memon, directed them to file their para wise comments on next date of hearing. During the hearing, counsel for the petitioner stated that it is engaged in the lawful import of Brake Lining and Friction Material (clutch facing) from China, Japan, Malaysia, Thailand, Indonesia and other countries and always fulfills all the legal formalities accordance with law and never nominated in any tax evasion case. Counsel further argued that it imported above mentioned goods’ consignment and filed Goods Declaration accordance with law; however, he was informed by the officials of the customs department that value of the above mentioned goods has been increased as per Valuation Ruling 1298/2018.

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ISLAMABAD

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slamabad High Court issued notices to M/s Pakistan Mobiles Communication Limited and the Federal Board of Revenue (FBR) in a tax matter Piled by the former. IHC single bench comprising Justice Athar Minallah issued the notices.

Earlier the bench had asked the staffers to relist the matter for hearing. The bench would resume hearing of the matter by next week.

M/s Pakistan Mobiles Communication Limited had Piled the reference in which the company had challenged a show cause notice issued by the Large Taxpayers Unit, Islamabad. The appellant had challenged the act of recovery of said amount by commissioner Inland Revenue of Large Taxpayer’s Unit, Islamabad. ATIR was also made respondent in the case as the tribunal had sustained departmental decision regarding issuance of show cause notice and demand of recovery of outstanding tax amount in head of federal excise duty (FED).

M/s Pakistan Mobiles Communication Limited had prayed the court that FBR ofPice had issued a recov-

Friday August 3, 2018

ery notice to the company which did not hold lawful grounds.

The appellant had prayed the court to declare the act as illegal and without any lawful authority and an interim stay may be granted against recovery proceedings. M/s Pakistan Mobiles Communication Limited submitted before the court that the impugned order was issued under mala-Pide intentions and had no legal standing or authority and the

court may decide on relief which it deemed appropriate in this regard.

It also stated that due legal course was not followed by the department in issuing the order.

M/s Pakistan Mobiles Communication Limited had also mentioned that departmental obligations were not met amid processing the notice of recovery demand while later the adjudication did not address grievances of the appellant.

M/s faheem enterprises move SHc for refund of security

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/s Faheem Enterprises and M/s Black Gold Engineering approached the Sindh High Court (SHC) for seeking refund of amount collected by respondents from the petitioners in the name of regulatory duty under Section 18 (3) of the Customs Act, 1969.

Counsel for the above mentioned importers argued in their petition that petitioners are engaged in import of different items, through their professional excellence, hard work and dedicated customer service, the petitioners have developed sub-

stantial clientele all over the country. Counsel argued that they being commonly aggrieved by the arbitrary, illegal and mala Pide actions of the respondents in particular the purported protection afforded to illegally levied regulatory duty by the Finance Act, 2018 and they were earlier aggrieved by the arbitrary il-

legal and unconstitutional acts of the respondents, whereby the respondents had issued SRO 1035(1)/2017 dated 16/10/2017 and imposed regulatory duty on a number of items including the items imported by the petitioners.

He argued that said petitioners were allowed by SHC by judgment with direction to refund the amount of duty levied and charged, however, customs ofPicials denied to refund their duty which were paid by them on regulatory duty. Citing Secretary Ministry of Finance, chairman Federal Board of Revenue, Collector of Customs Appraisement East, Collector of Customs Appraisement

West, Collector of Custom Appraisement Port Muhammad Bin Qasim as respondents, he pleaded the court to direct them to immediately refund their security of amount equivalent thereof along with markup collected by this court in the earlier round of litigation. They also pleaded the court may restrain then from taking any action for enchasing the securities furnished by the petitioners with the customs or nazir of the court or assessment of consignments of the petitioners on the basis of purported validation law in respect of the regulatory duty for the relevant period as this court has very graciously pass in its orders.

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Saudi Customs Authority inaugurates Risk Management Center

World Customs

RIYADH:Head of the Saudi Customs Authority governor Ahmad bin Abdel Aziz AlHaqbani inaugurated the Risk Management and Targeting Center.

The center would seek to enhance the effectiveness of the customs’ risk management and develop a mechanism for targeting risks and threats through land, sea and air customs ports.

In addition, it would work on assessing possible threats and develop an effective strategy for potential risks and impacts associated with ports.

Friday August 3, 2018

chinese customs seizes 7m items in first half of 2018

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far eastern Сustoms Head resigned after fSB audit Pavel Fomin, the Head of the Far Eastern Customs (DVOT), left his post, RIA Novosti reports with reference to the agency’s representative. Recall that in early July, the FSB raided the customs. At the same time local media wrote that Fomin was detained, but later this information was denied by the department. The DVOT did not disclose the ground of the search. It was also reported that Fomin was suspected of corruption. During the searches, a computer, documents, and equipment were seized. The FSB raid was part of a criminal investigation against First Deputy Head of the Far Eastern Customs Administration (DVTU) Sergey Fedorov, who was detained in March 2018. He is charged with taking bribes on an especially large scale. It is believed that he received at least 26 million rubles ($411.400) and 150 thousand US dollars for the patronage of DalzavodTerminal company. –CB Report

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TEHRAN

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BEIJING

hinese customs has seized 7.1 million items suspected of IP infringement in the Pirst half of 2018, according to new data shared by China’s ofPicial news agency Xinhua yesterday.

The data, from China’s General Administration of Customs (GAC), showed that most of the items (6.9 million) were suspected of infringing trademarks.

Xinhua noted that China’s customs worked closely with its Russian counterparts between March and June to tackle IP infringements related to the FIFA World Cup 2018, which took place. The data showed that more than 500,000 items related to the football tournament were seized by the two countries’ customs authorities.

Zhang Guangzhi, spokesperson of the GAC,

iran’s cement export hits over $159.3mn in Q1

reportedly said that Chinese customs will continue to crack down on IP infringements. Guangzhi added that China will impose harsher punishments on enterprises which violate the country’s IP law. The GAC’s data showed that

nearly 3,000 (2,796) applications for customs IP protection in China were approved in the Pirst half of this year, and approximately 4.8 million seized items were involved in IP infringement proceedings involving Chinese enterprises.

Saudi ministry welcomes iMf statement on economic reforms

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audi Arabia’s Ministry of Finance welcomed the International Monetary Fund (IMF)’s commendation of the progress made in implementing the Vision 2030 reform program and its positive economic impact. The statement was issued after the IMF’s Executive Board concluded discussions on the 2018 Article IV consultation with Saudi Arabia for 2018. There is a “broadly positive outlook” for the Saudi econ-

omy, the statement added. The IMF expects real gross domestic product (GDP) growth to increase to 1.9 percent in 2018 driven by an improvement in the growth rate of the nonoil sector, which is expected to strengthen to 2.3 percent compared to 1.1 percent in the previous year.

Growth is expected to pick up further over the medium-term as the reforms take hold and oil output increases. –CB Report

he Pigures show one percent decline as compared to the same period last year, but no difference in terms of weight.

Meanwhile, 12,786 tons of cement was imported in the same period, showing a considerable 106 percent growth as compared to the last year’s corresponding period.

IRICA also put the cement import value in the Pirst quarter of the current year (March 21-June 21) at $8.3 million, showing a 131 percent hike as compared to the same period last year. Other reports showed that over 55,192,200 tons of cement was produced in the country in the last Iranian calendar year.

Moreover, 58,110,200 tons of clinker was produced last year, showing one percent increase as compared to the last year’s corresponding period.

In total, 12,134,398 tons of cement and clinker were exported last year

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(ended March 20, 2018), registering 6.93 percent decline as compared to the same period in 2016.

Meanwhile, Iran replaced its central bank chief on Wednesday, local media reported, amid fallout over banking scandals and the crisis facing the country’s economy. Valiollah Seif, who had served as the bank’s governor since President Hassan Rouhani took power in August 2013, was replaced by Abdolnasser Hemati following a cabinet meeting, according to the ofPicial IRNA news agency. Hemati, 61, previously served as head of Central Insurance of Iran, as well as both Sina Bank and Bank Melli. He had been slated to become ambassador to China until he was recalled at the last minute. Seif has been criticized particularly over his handling of a currency crisis that has seen the rial lose more than half its value against the dollar in the past year. An attempt in April to enforce a Pixed rate for the rial sparked a boom in black market exchanges.

export of iron ore tops $5b in five years

tatistics show that over $1.1 billion worth of iron ore has been exported from the country annually on average.

According to the Islamic Republic of Iran Customs Administration (IRICA), it shows that $1,072,000,000 worth of iron ore was exported in the country in the past Iranian calendar year (ended March 20, 2018), showing more than 31.1 percent growth as compared to a year earlier. Another statistic shows that $1.115 billion and $522 million worth of iron ore were exported from the country in 2014 and 2015 respectively.

IRICA put the export value of iron ore in 2013 at more than $1.547 billion, showing a significant 69 percent growth as compared to a year earlier. Statistics show that Australia accounted for 52 percent share in the world in terms of iron ore export in 2017, standing in the first place in the worldwide. Brazil and South Africa stood at the 2nd and 3rd ranks respectively in this field. About $1.4 billion worth of iron ore was exported from the country in the past Iranian calendar year accounting for 1.5 percent share of total iron ore export. –CB Report

uS customs seizes counterfeit cartier jewellery

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WASHINGTON

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S Customs and Border Protection has seized 48 counterfeit Cartier Love Bracelets shipped from Hong Kong.

The CBP announced July 30 that it had seized the designer bracelets from the port of

Philadelphia earlier in the month.

Cartier has been offering its range of Love Bracelets since 1969, and the line now includes cufflinks, rings, earrings and necklaces. After inspecting the shipment for possible counterfeit items, CBP officers found 31 Cartier rose and yellow gold bracelets and 17 Cartier white gold bracelets, all encrusted in diamonds. The items

were detained for further evaluation due to their poor packaging and the low quality of the jewellery. Upon further investigation, it was found that a previous shipment of counterfeit Cartier bracelets from the consignee had also been seized. If they were authentic, the bracelets would have had an estimated collective retail price of more than $2 million. “For

these CBP officers, keeping their ‘eyes on the prize’ didn’t mean finding real gold, but instead Pinding fool’s gold,” said Joseph Martella, CBP port director for the port of Philadelphia. According to the agency, importing counterfeit goods can cause signiPicant revenue loss for brands, damage the US economy, and threaten the health and safety of US citizens.

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GAC taking steps to further simplify customs procedures for firms China:The General Administration of Customs is redoubling efforts to improve enterprise credit management, in a bid to further strengthen corporate integrity and simplify customs procedures. GAC has been, for the past decade, promoting and improving its Authorized Economic Operator classification system. Companies that are certified as an AEO are qualified for simplified customs procedures like clearance facilitation, while the discredited ones are subject to stricter customs controls. Chen Hongqin, a manager in charge of customs affairs at Guangzhou Fiedle Leather Bag Co, said the company has gained a lot from the AEO certification it obtained last November.

canada invests in port, rail projects at port of Vancouver he government of Canada, through the National Trade Corridors Fund, is granting CA$167 million (US$128.46 million) for three projects at the Port of Vancouver in British Columbia. The funding will be applied to three projects that Transport Canada says will help the country’s businesses compete globally by making improvements to port infrastructure and by increasing the capacity of the rail infrastructure that serves the south shore port area, ensuring goods move efficiently to market. The first two projects are led by the Vancouver Fraser Port Authority, with investment from Canadian National Railway and Canadian Pacific Railway and include: improving the existing Thornton Rail Tunnel ventilation system so that trains can pass through the tunnel more frequently; improving the rail corridor

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Ports & Shipping

china invests in 42 overseas ports under Belt and Road project C

CHINA

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hinese companies have participated in the construction and operation of a total of 42 ports in 34 countries under its Belt and Road initiative launched Pive years ago, according to China’s Ministry of Transport. These ports include Piraeus Port in Greece, Hambantota Port in Sri Lanka and Gwadar Port in Pakistan, Wu Chungeng, the ministry’s spokesperson, told a press briePing in Beijing.

Wu said China has also signed 38 bilateral and regional maritime agreements covering 47 countries along the Belt and Road trade routes. A signature foreign policy plan of Chinese President Xi Jinping, the Belt and Road initiative was proposed in 2013 to boost China’s trade with some 70 countries in Asia, Europe and Africa through massive investments in railroads, ports and power plants. It consists of a landbased Silk Road Economic Belt running from China’s western parts towards Europe and the Middle East, and the 21st Maritime Silk Road that

links China’s coastal parts to the South PaciPic and Australia and to Europe and Africa through the South China Sea and the Indian Ocean and the Arctic.

Beijing’s maritime ambitions rePlect the fact China is the world’s largest exporter and the second largest importer, and wants to secure access to infrastructure and resources that it considers critical to its economic development.

A large part of the overseas port investments has been carried out by state-owned companies, espe-

cially China Ocean Shipping Company (COSCO) and the China Merchants Group. COSCO owns and operates Greece’s Piraeus Port, among others, while ports managed by China Merchant Groups include the Hambantota Port, which Sri Lanka gave to China on a 99year lease last December after being not able to pay back loans to Chinese banks. But the port shopping spree by state-controlled Chinese companies has raised concerns in recipient countries, particularly in Asia and Europe.

Friday August 3, 2018

Real cost of port shortfalls in Australia mpediments to efficiency in Australia’s port network ultimately impact negatively on the cost of living for Australians and Australia’s competitiveness on the international stage, according to Ports Australia chief executive Mike Gallacher. He said that with a coastline in excess of 30,000 kilometres, with more than 85% of the population living within 50 kilometres of the coast, ports are central to the nation’s freight challenges. As the freight task continues to grow, the arrangement of ports along the coastline will be an opportunity for ports and the country to spread the burden of this increasing freight task, he says, while adding: “There are plenty of factors that impact the effectiveness of ports and their ability to move goods from the waterside to the market and vice versa.” A staunch advocate of more coastal shipping, Mr Gallacher says both the trucking and rail lobby are powerful in the eyes of government because they are so visual. “Shipping, on the other hand, is largely out of sight, out of mind for most. –CB Report

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Russia to build super-heavy cargo plane by 2027 by building 5.5 km (3.42 miles) of track adjacent to the existing double-tracked corridor; designing and raising Douglas Road so it crosses over the existing Canadian National railway l corridor; building the Centennial Road overpass, a 600 meterlong (1,968.5-foot), two-lane elevated viaduct structure; extending the existing two-lane Waterfront Road by 600 meters (1,968.5 feet); realigning 350 meters (1,148.3 feet) of Commissioner Street; and building 9.4 km (5.84 miles) of new siding track and reconfiguring train switching operations within the Canadian Pacific railway corridor, along the south shore of Burrard Inlet in the Cities of Vancouver and Burnaby. –CB Report

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he work on developing a super-heavy plane to replace the Antonov An-124 Ruslan cargo aircraft has been included in the state armament program through 2027, Russian Deputy Prime Minister Yuri Borisov said.

Russia’s biggest Arctic transport company expands its cargo Pleet “The R&D work on the plane is in the plans at the end of the state armament program,” Borisov said, replying to the corresponding question. The An-124 Ruslan is a Soviet and later a Ukrainian heavy longrange turbojet transport plane with a maximum lifting capacity of 120 tonnes. It develops a maximum speed of 865 km/h and has a Plight range of 4,800 km at full load. According to open sources, the Russian

Aerospace Force currently operates nine An-124 planes and 10 more Ruslan aircraft are used in Russia’s Volga-Dnepr airline.

In September 2015, Ukraine’s Antonov State Company withdrew from the United Aircraft Corporation – Antonov Russian-Ukrainian joint venture, which created serious difPiculties for the Volga-Dnepr airline with the extension of the cargo plane’s service life and its maintenance. As was reported earlier, the Ulyanovsk-based Aviastar-SP enterprise has launched preliminary work related to restarting the production of An-124 Ruslan planes in Russia.

Meanwhile, Russia:Russia is now in the midst of a grand restructuring of its seafood sector. From massive investments in infrastructure to overhauling Pisheries laws to efforts to boost domestic and overseas markets for its products, Russia’s government is pouring resources

into reviving and invigorating all aspects of its Pisheries economy.

SeafoodSource has undertaken an in-depth, two-part investigation of Russia’s efforts. Part one of this series, “Russia tackling ambitious modernization plan for its seafood sector,” was published. As part of a new national strategy adopted in late 2017, the Russian government called for an investment by state and private businesses of RUB 26.5 billion (USD 423.7 million, EUR 362.6 million) between 2017 and 2025, with the money focused on refurbishing and expanding the country’s Pishing terminals.

A central part of the strategy is attracting more Russian Pishing companies to use the country’s own Pishing terminals to land their catch and repair their vessels inside Russia. Due to aging Pishing port infrastructure, an increasing majority of Russian-Plagged ships are instead

spending money and selling Pish at ports abroad, primarily in South Korea, Japan, China, and Norway.

The problem is most severe in Russia’s Far East, where more than 700 Pishing vessels are deployed.

While 65 percent of them are technically maintained and repaired at Russian ports, that total consists mainly of ships of small range, 90 percent of which are served in Russia. Only half of medium- and longrange vessels operating in the Far East prefer national harbors. The other half pays for technical services in the South Korea, China and Japan, with most of this money going to the Korean port of Busan, which provides storage facilities for one million MT of Pish, as well as fast and efPicient handling and paperwork. While it’s more expensive to get maintenance abroad, the speed of services there is 40 higher than in Russia.

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YouTube issues list of most popular ads in Pakistan from January to June 2018 Friday August 3, 2018

Business

KARACHI: Google today released its YouTube Ads Leaderboard for Pakistan in the January-to-June time period. This list represents the top 10 ads and branded content people chose to watch on YouTube through a combination of popularity and promotion.

According to an Ipsos research, YouTube is the number one online video streaming platform among millennials in Pakistan with it reaching 80 percent of online millennials residing in metro cities in Pakistan. Globally, 1.9 billion people log into YouTube every single month.

nAB again summons Aleem, chaudhrys LAHORE

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he NAB has again summoned PTI leader Aleem Khan for August 8 in a case related to assets beyond known source of income.

It is pertinent to mention that Aleem Khan is a potential candidate for the slot of Punjab chief minister.

The Bureau has directed Aleem Khan to appear before the investigation team for August 8 at 11am.

The Bureau is investigating properties of Aleem Khan in the US and the UK. Aleem had appeared before the Bureau twice but was unable to satisfy the investigation team.

nAB deposits Rs2,200m in national kitty KARACHI

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According to nomination papers of Aleem Khan submitted for general elections, he owns assets worth over Rs900 million. Meanwhile, the Bureau has also summoned Pervaiz Elahi and Ch Shujaat Hussain for Au-

Rs35b money-laundering case: faryal talpur challenges fiA’s charge-sheet

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he National Accountability Bureau (NAB) has deposited Rs2200 million in the national exchequer after recovering the money from ‘corrupt elements’ during the last nine months.

According to the NAB, it has arrested 330 people in different cases. The antigraft body has filed more than 1,200 corruption references in respective accountability courts across different parts of the country. The bureau is also planning to file applications for early hearing of all the references under trial.

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gust 16 in a similar case related to assets beyond known source of income. The Bureau has asked the Chaudhry brothers to appear in person before the investigation ofPicer.

Meanwhile, National Accounta-

bility Bureau (NAB) Chairman Justice (retd) Javed Iqbal has directed the NAB to give priority to probe in mega corruption scandals.

“The NAB prefers investigating mega scandals instead of concentrating on minor cases of corruption so that big Pish could be nabbed as per law of the land,” he said chairing a high-level meeting here at the NAB headquarters, held to review the policy of arresting culprits allegedly involved in corruption.

He said the NAB does not have any pick and choose policy in apprehending the corruption accused.

He warned of strict action against NAB ofPicers on showing negligence in this regard. He said the NAB has the policy of arresting the culprits allegedly involved in corruption without any discrimination.

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KARACHI

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ormer president Pakistan Asif Ali Zardari’s sister and Pakistan Peoples Party’s (PPP) leader, Faryal Talpur , challenged the Federal Investigation Agency’s (FIA) interim chargesheet in the money-laundering case.

The FIA is investigating alleged ‘benami’ accounts from which money was laundered and has named PPP Co-Chairman Asif

Zardari and his sister, Talpur, among the 32 suspects.

Talpur did not appear before the FIA earlier as she sought more time. The PPP leader, who recently won from a provincial assembly seat, obtained pre-arrest bail until August 6 from a banking court in Karachi on July 28. She had earlier obtained a six-day protective bail from the SHC. In her application before the Sindh High Court today, Talpur stated that the FIA’s interim charge-sheet does not clearly mention the charges or her name. She

has requested the court to dismiss the FIA’s charges and issue a stay order on the action being taken on its basis. On July 12, while hearing the suo motu case on the FIA’s investigation, the Supreme Court had ruled that the agency should not summon Zardari and Talpur until the July 25 election. The FIA is investigating 32 people in relation to money-laundering from fictitious accounts, under which Zardari’s close aide and then-Pakistan Stock Exchange Chairman Hussain Lawai was arrested earlier this month.

Sc orders SBp to freeze ‘fake’ accounts under fiA probe ISLAMABAD

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hief Justice of Pakistan (CJP) Mian Saqib Nisar on Monday ordered the State Bank of Pakistan to freeze ‘fake’ bank accounts until the time the ongoing investigation by the Federal Investigation Agency (FIA) is complete.

The Supreme Court was hearing an application filed by lawyer Khalid Ranjha regarding the operation of the accounts under investigation.

The lawyer protested on the chief justice’s order, saying that freezing the bank accounts would result in the closure of his client’s company.

Justice Nisar, however, dismissed this concern, saying “let the company shut down”. The FIA is investigating 29 ‘benami’ accounts that were allegedly used to channel illicit funds. Former president Asif Ali Zardari and his sister Faryal Talpur are among those who are accused of being beneficiaries of the suspicious transactions, while his close aide Hussain Lawai is one of the people accused of facilitating the opening of the fake accounts. In a surprise move earlier this month, the FIA had arrested Lawai and two other bankers that are allegedly involved in a money laundering scam of more than Rs35 billion.

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S.Arabia announces Rs1b financial assistance for pakistan ISLAMABAD

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audi Arabia has announced Rs1b Pinancial assistance for the Islamic republic as the latter is facing a severe strain on the external Pinancing front.

The move, yet to be conPirmed by the country’s Finance Ministry and the State Bank of Pakistan, comes a week after the International Islamic

Trade Finance Corporation (ITFC), the Pinancing arm of the IDB for trade activities, rolled over a loan of $100 million. The Economic Affairs Division (EAD) secretary had signed the Letter of Amendment for the credit facility. The Pinancing will help Pakistan meet energy requirements for the period from 2018 to 2020. It will allow the country to Pinance vital imports of crude oil and rePined petroleum products.

The previous government of Pak-

istan Muslim League-Nawaz (PMLN) had sought $5 billion in aid from Riyadh, but it did not succeed. Now, it is expected that the new government of Pakistan Tehreek-e-Insaf (PTI) may get assistance of around $2 billion from the kingdom.

Saudi Arabia’s ambassador to Pakistan met with PTI Chairman Imran Khan at the latter’s residence China, which had also refused to bail out the PML-N government, has also agreed to give $2 billion in Pinancial

assistance. Of this, over $1 billion has been disbursed this week.

This helped Pakistani rupee surge by 4.3 percent to 122.24/123.86 per dollar on Monday. Monday brought the Pirst signiPicant strengthening in years for the rupee, which has weakened more than 20 percent since December after four separate devaluations by the central bank. The US dollar continues to weaken in the open market as it lost Rs4 on the Pirst trading day of the week to reach

Rs121. Stability in the Pakistani rupee is being observed after the General Elections 2018 ended all speculations of delay in polls and other government systems. In the interbank market, the dollar also shed over Rs5 and currently, it is being traded at Rs122.5, decreasing the burdens of Pakistani debts by Rs450 billion. End of political uncertainty following elections was attributed as the main factor in the signiPicant drop in the greenback’s price.

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Govt asked to withdraw cotton import duties KARACHI: The Karachi Cotton Association (KCA) has asked the government to withdraw duty and taxes on cotton imports because of expected short crop which will leave a huge gap of around four million bales between demand and supply.

The caretaker government had imposed a 3 per cent customs duty, 2pc additional customs duty, 5pc sales tax and 1pc income tax on import of cotton. In support of their demand, the KCA pointed out that after the payment of heavy duties and taxes, the cotton import would become costlier and push up prices of end products like value-added textile goods.

pakistan’s industrial sector requires 2 million skilled labour by 2022

Friday August 3, 2018

Chambers

cDA asked to address acute water shortage issue in i-10 Sector

ISLAMABAD

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akistan’s industrial sector would require over 2 million skilled work force by 2022 as there will be higher growth in employment in 201722 has been forecast due to swift changes in consumer preferences and penetration of organized furnishing services. The acute shortage of skilled workforce badly hampering the local export, particularly the furniture and furnishings products, said , said Pakistan Furniture Council (PFC) Chief Executive Mian Kashif Ashfaq. In a statement here on Saturday, he said there was a dire need to provide training to non-skilled and semi-skilled workers of this industry who are scat-

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tered in furniture hubs like Gujrat, Gojra, Peshawar and Chiniot to boost furniture exports to $5 billion in five years. He said that statistics show that out of 59 million potential workforce, 56.5 million is employed while 3.5 million (6 per cent) are unemployed. Over 90 per cent of the unemployed labor consists of unskilled people and most of the rest whereas remaining 10 per cent are those who are educated but without having any skill, he remarked. He said the market is moving rapidly towards organized segment and the share of organised employment will increase from 5% in 2017 to 13% by 2022 in Pakistan. PFC CEO said due to swift change in technology and innovation techniques, the furniture industry in Pakistan is in dire need of the skilled workers and professional designers, adding that furniture and space design must amalgamate aesthetics, culture, history, procedures, manifestation, material, purpose and visualization.

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ath taking ceremony of newly elected OfPice Bearers of Traders Welfare Association, Auto Market, I-10/3, Islamabad was held at Islamabad Chamber of Commerce & Industry. Sheikh Amir Waheed, President ICCI administered oath. Raja Musharraf Janjua took oath as President, Raja Naveed Senior Vice President, Malik Anwaar Awan Vice President, Slawar Khan Afridi General Secretary, Muhammad Nazeer Ahmed Awan Additional General Secretary, Rasheed Butt Deputy Secretary, Yasir Mehmood Finance Secretary, Dr. Saeed Press Secretary, Muqarar Iqbal Joint Secretary and Abdul Waheed as OfPice Secretary. Raja Jahangir Ahmed Patron-in-Chief, Muhammad Hussain Group Chairman and Haji ShaPiq Chairman Executive Committee were also present at the occasion.

Speaking at the occasion Sheikh Amir Waheed, President, Islamabad Chamber of Commerce & Industry said that auto market of I-10/3 was

playing useful role in providing jobs and promoting business activities, therefore, CDA should address its key issues on priority basis. He said that CDA should further expand auto market in I-10/3 by allotting more plots so that all auto workshops from Islamabad could be shifted to this market. He said people including business community were facing serious problem of acute water shortage in I-10 Sector and urged that CDA should address this issue on urgent basis. He called upon the new government to con-

sider giving representation to ICCI in CDA Board so that the issues of business community could be resolved smoothly.

Naveed Malik Senior Vice President, Nisar Mirza Vice President ICCI and Muhammad Ejaz Abbasi former President ICCI congratulated the newly elected ofPice bearers of TWA Auto Market I-10/3, Islamabad and said that efforts would be made with the new government to construct Plats for small traders on ownership basis in Islamabad in order to resolve their residential issues. They

turkish cos shows interest in healthcare sector ISLAMABAD

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delegation of Turkish company M/s. MediContinental led by its Managing Partner Ms. Zeynep Dayioglu visited Islamabad Chamber of Commerce & Industry and held a meeting with Sheikh Amir Waheed, President ICCI to explore opportunities in Pakistan’s healthcare sector. Murat C. Dayioglu and Zahid Hamid were in the delegation.

The delegation members said that MediContinental of Turkey was providing services in various Pields of healthcare including transplant surgery, cancer treatment, heart surgery, plastic, bariatric and spine surgeries, dental and eye treatment.

They said that they were interested in bringing these services to Pak-

istan to provide international standard health services to the Pakistani people. They said that they also intended to bring a team of doctors to work in far-Plung areas of Pakistan on voluntary basis so that people of such areas could avail quality health services. They sought the cooperation and support of ICCI in realizing these objectives. Addressing the delegation, Sheikh

Amir Waheed, President, Islamabad Chamber of Commerce & Industry said that Pakistan was a country of rising population which offered great potential for investment in healthcare sector. He said the current public sector health infrastructure in the country was not sufPicient to meet the growing health services needs of people and urged that Turkish investors should explore Pakistan for investment and joint ventures in health sector.

He appreciated the role of M/s.

MediContinental for providing high quality health services to the Turkish people and stressed that they should enhance their presence in Pakistan so that Pakistani people could also take benePit of their quality health services. He assured that ICCI would expend possible support in connecting the Turkish investors with right counterparts in Pakistan.

assured that ICCI would cooperate in resolving key issues of I-10/3 market. Speaking at the occasion, newly elected President, TWA Auto Market I-10/3, Islamabad Raja Musharraf Janjua highlighted the key issues of his market. He said that CDA had left carpeting of some roads incomplete in auto market and urged that CDA should complete its unPinished job in the market to facilitate business activities.

He said a bridge was urgently needed in the market to which CDA should pay urgent attention.

Leather industry seeks release of Rs450m tax refund large number of duty drawback claims of exporters are stuck with the Customs Collectorate for shipments of leather through the Lahore airport, which has not been cleared despite several meetings with the collector, said Pakistan Tanners Association (PTA) Export Committee Chairman Anjum Zafar in a statement. Unavailability of the cheque-signing authority at the collectorate caused delay in the release of leather exporters’ tax refunds, which had piled up to Rs450 million, he said. Zafar pointed out that the association’s members were facing difficulties in continuing their business smoothly in the wake of challenges caused by power and gas shortages, law and order concerns and rising prices of petroleum products.

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Peshawar Customs Intelligence seizes 26kg charas PESHAWAR: The officials of Directorate of Intelligence & Investigation, Peshawar have seized huge quantity of charas weighing 26kg worth Rs2.6 million near Charsadda Road.

The seizure carried out on a tipoff that narcotics would be smuggled from tribal area into the country through a Toyota Axio car. In pursuance of the information, the officials of Customs intelligence setup a picket near Charsadda Road, Peshawar.

Friday, August 3, 2018

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Quetta i&i foils bid to smuggle non-duty paid washing machines QUETTA wAQAR AHMeD AnSARi www.customsbulletin.com

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he Customs Collectorate foiled two smuggling attempts by seizing foreign origin non-duty paid washing machines and its accessories, besides arresting two accused persons. As per details, Collector Ashraf Ali received credible information that huge quantity of foreign origin smuggled washing machines will be supplied out of the city. The deputy collector formed a team comprising Inspector Imran Jan and Fakhir Siddiq and others to foil the smuggling attempt.

Following directions, the customs staff started checking of vehicles at exit points of the city where a truck was intercepted for checking that led to the recovery of more than 80 non duty paid washing machines and its accessories.

On demand, the driver and his assistant failed to produce documents regarding legal import of the items, therefore, the officials confiscated the machines worth Rs 2 million. The officials seized the goods after driver failed to show documents regarding legal import of the items.

Dc Adjudication Saima orders to release goods, vehicle FAISALABAD

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he Customs Adjudication Deputy Collector Saima Ayyaz on Friday ordered to release seized foreign origin power cable and computer systems after the payment of duty and taxes.

As per details, the Anti-Smuggling Organization Mainwali assistant collector received information

regarding smuggling of foreign origin power cables and computer systems 250 pieces worth Rs 4437500 involving duty and taxes Rs 1940785 from Attock through a Mazda mini truck.

To check the veracity of aforesaid information a raiding party established check post at M.M Alam Road Mianwali and intercepted the reported Mazda mini truck. A detailed search of the said vehicle led to the recovery of goods. Driver of the said vehicle and owner of the goods identiPied themselves as Fateh Khan. They were asked to show documents re-

garding legal import of item but they failed to produce the same.

Therefore, the recovered power cables and computer systems was

seized under Section 168 of the Customs Act 1969 after proper documentation on the spot and a notice was served under Section 171 of the Customs Act 1969 punishable under Section 156 (1)(89)(90) of the Act 1969 upon the said accused persons.

The case was sent to the Customs Adjudication where respondents appeared in persons and expressed willingness to pay duty and taxes. They also requested that his vehicle may release on reasonable fine. Deputy Collector Saima Ayyaz reviewed the record of the case and con-

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sidered verbal submissions put forth by the respondents and prosecution and came to conclusion that the respondent have failed to provide valid legal documents regarding lawful import of the aforementioned seized foreign origin items. He decided to seize the goods under the customs laws. He also granted an option to the rightful owners in terms of Section 181 of the Customs Act 1969 to redeem the same on payment of duty and taxes leviable thereon plus a redemption fine equivalent to 30 percent of the appraised value.