Feb 11 layout 1

Daily on www.customsbulletin.com

Find us on

pAkiSTAn’S firST inDepTH newSpAper on cuSToMS

Daily

ABC Certified

Karachi, Sat February 11, 2017

LAHORE

M HAYAT

www.customsbulletin.com

C

ollectorate of Customs Apprasiment has collected Rs 36,651 million against the revenue collection target of Rs 33,779 million for the Vinancial year 201617 (July to January).

The Collectorate of Appraisement is being headed by Collector

Muhammad Sadiq and the collectorate is responsible for collecting all the duty and taxes on goods and articles cleared in Lahore.

As per details the Collectorate of Customs Appraisement has collected Rs 13,501 million on account of customs duty against a target of Rs 11,581 million from all the dry ports while the Collectorate collected Rs 3,749 million withholding tax (WHT) from all the ports against the tar-

Vol 2, Issue No. 81

Price Rs. 14.00

get of Rs 3,765 million for the period. On the other hand the Collectorate has collected Rs 19,315 million under the head of sales tax against Rs 1,8351million target of sales tax collection for the Vinancial year 2016-17. Similarly, the Collectorate collected Rs40 million federal excise duty (FED) against the proposed target of Rs 100 million collected during the seven months of the Vinancial year 2016-17.

Port Qasim Collector Mukarram Jah transfers 4 principal appraisers

Peshawar ASO seizes drugs worth Rs51.40m in seven months of FY2016-17

Pak globally acknowledged as attractive destiny for business, investment

Customs Central Region collects Rs75.056b duty, taxes

DG Valuation issues reference values of Gentamycin Injection, PVC toilet

PQ Customs Collector Mukarram Jah has transferredandposted4principalappraisers | See pAge 02 |

TheCustomsASO,Peshawar,seizednarcotics including hashish, opium and heroin | See pAge 03 |

Dar said Pak was being acknowledged globally by the international media | See pAge 04 |

Customs Central Region has collected Rs75.056 billion all duty and taxes | See pAge 14 |

TheDGofCustomsValuationhasissuedthe referencevaluesofGentamycinInjection | See pAge 16 |

2

www.customsbulletin.com

Customs Appraisement collects Rs10.58b in January 2017 Saturday, February 11, 2017

National

KARACHI: The Customs Appraisement west collected Rs10.58 billion in the month of January 2017 against the assigned target of Rs9.18 billion. The appraisement exceeded the assigned target by Rs1.403 billion. The customs preventive collected Rs10 billon in head of duty and taxes.

According to details, the customs appraisement collected Rs10.58 billion in head of customs duty whereas collected Rs14.99 billion in head of sales tax, Rs4.92 billion in head of income tax and Rs0.16 billion in head of federal excise duty during the above said period.

collector port Qasim Mukarram Jah transfers four principal appraisers

SIALKOT

KARACHI

SALeeM AwAn SHeikHu

cuSToMS BuLLeTin reporT

www.customsbulletin.com

www.customsbulletin.com

he Collector Customs of Model Customs Collectorate (MCC), Sialkot, Ahmad Reza Khan has circulated an office order to observe the punctuality and do not leave the offices of the collectorate and the R&D when they are working. The order noted that it was being observed that punctuality, discipline and order in the respective sections of the office are not being maintained which is adversely affecting the performance. Principal Appraiser R&D, Principal Appraiser Securities, ASO, Recovery, Admin, CHO, Transport Officer and officers and officials of other departments have been advised to arrive at 09: 30 am. An official said officials could not be bound to stay at office after business hours and after this order they have to stay at office till late. It may be mentioned here that the Pakistan Customs observes six days a week as officials are not given offs on Saturday besides they have to stay in office till late due to shortage of staff and are not paid any overtime or other incentive. Another official said the government has announced officially five working days but the employees of the MCC, Sialkot.

T

P

ort Qasim Customs Collector Mukarram Jah has transferred and posted four principal appraisers in his collectorate.

Mohammad Ashraf Bhatti has been transferred and tasked to look after Group-II, Import Section and Refund. Asad Aleem has been transferred from Group-V, Pre-refund audit and Customs Lab and posted at Group-I & Group-V, Pre-refund audit and Customs Lab. Khalid Umer has been transferred from Group-II, Group-III, Refund and Bank Guarantee Cell to Group-III, One Customs and Bank Guarantee Cell. Tariq Aziz has been transferred from Group-VI, Law, Revenue Monitoring and Periodic Statements and posted at Group-VI, Bulk, Law, Revenue Monitoring and Periodic Statements.

Meanwhile, The Custom Preventive impounded three non-duty paid vehicles and registered FIRs against three accused persons.

According to details, the customs preventive received credible information that three different vehicles, including a Mercedes Benz, a Toyota Mark-II and a Toyota Prado, are under use in the city.

The customs preventive staff traced all three vehicles and recovered Mercedes Benz without registration plate from M/s Qadeer Auto

Sialkot customs orders officials to observe punctuality

Mobile Engineers Workshop in the possession of Saeed Khan and its estimated value is Rs2.97 million. Toyota Mark-II car valuing Rs2.08 million was recovered from Defense Phase-VIII in the possession of Zark Khan, son of Khan Muhammad Khan. Whereas, Toyota Prado valuing Rs2.16 million was recovered

from M/s Umer Auto Workshop and it was in the possession of Aurungzeb mechanic. Detailed veriVication and scrutiny of the vehicles found that Toyota Mark-II Saloon was registered by the Motor Registration Authority Karachi on the basis of fake, forged and fabricated documents. Therefore the vehicle

was impounded and an FIR was registered against the accused accordingly. Aurungzeb and Saeed Khan, the mechanics, were directed to contact the owners of the other two vehicles and tell them to appear before the authorities with legal documents to provide the lawful import and possession of these vehicles.

Dc Asma Hameed declares seizure of liquor as legal D

FAISALABAD

iQrA SHeHZADi

www.customsbulletin.com

eputy Collector Customs Adjudication Asma Hameed has issued Order-inOriginal (ONO) in favour of the Customs Intelligence and Investigations (I&I) while declaring the seizure of foreign liquor bottles as legal. As per details, the Customs Air Flight Unit (AFU) recovered foreign origin ten foreign liquor

bottles of different brands from a suspect, Abdul Rauf .

Custom AFU staff during the course of checking of passengers for Flydubai international flight scheduled to be arrived at Faisalabad from Dubai.

A hand carried black bag owned by passenger namely Abdul Rauf checked by the customs staff . The bag was having doubtful status and was opened in the presence of witness which led to recovery of the foreign liquor bot-

tles of different brands.

The customs staff forwarded the case to Customs Adjudication for further proceedings taking stance that the seized foreign liquor bottles were prohibited and brought into country without payment of duty and taxes.

In the light of facts it is clear that the seized goods foreign liquor bottles are restricted ones and brought into the country illegally, thus the same are liable to confiscation in favour of Customs

Adjudication under the relevant customs law.

Further more, during the hearing of the case, no one appeared to defend the case on behalf of respondents nor was any written reply was submitted despite giving many opportunities.

During proceedings Inspector Khalid Mehmood appeared from the prosecution side and asserted that the seized liquor bottles falls under the ambit of Section 2(s) of the Customs Act, 1969 read with

current import policy order.

It is therefore, established that the respondent have nothing to defend against the allegation framed in the show cause notice.

After hearing the arguments, Deputy Collector Asma Hameed decided case on the basis of facts and material available on the file and issued ONO and declared the seizure of cell phones as legal under Section 156(1)89 of the Customs Act, 1969 read with Import Policy Order, 2013.

3

www.customsbulletin.com

Tax evasion: Custom Court grants interim pre-arrest bail to suspect KARACHI: Custom Court Judge Syed Faiz Rasool Rashdi has granted interim pre-arrest bail to a suspect, Sharafatullah son of Attaullah. The suspect was booked in a duty and taxes evasion case. During the hearing, counsel for the suspect filed an application for interim pre-arrest bail and argued that the accused is innocent and was falsely implicated in this case, and that he is also ready to face trail. Therefore, the court may grant him bail till the final disposal of this case.

After the arguments, the court granted ad-interim bail to the suspect against surety bonds of Rs 200,000.

fBr serves notices on 115 politicians including imran, Ayaz

Saturday February 11, 2017

National

peshawar ASo seizes drugs worth rs51.40m in 7 months of fY2016-17

ISLAMABAD

cuSToMS BuLLeTin reporT www.customsbulletin.com

he Federal Board of Revenue (FBR) has issued notices to over 115 politicians picked up for audit. According to the details gathered through their National Tax Numbers (NTN) available in the FBR’s tax directories, these politicians include PTI chief Imran Khan, National Assembly Speaker Ayaz Sadiq, Deputy Speaker Murtaza Javed Abbasi, Defence Minister Khawaja Asif, Law Minister Zahid Hamid and the MQM’s Dr Farooq Sattar. Sources said that there is a big difference between Imran Khan’s declared income/ assets and the amount of money paid in taxes.

T

faisalabad fiA arrests human trafficker from Jhang FAISALABAD

nAeeM SHeikH

www.customsbulletin.com

he Federal Investigation Agency (FIA) arrested a human trafficker from Jhang during an action. Sources told Customs Today that Deputy Director FIA Syed Imam Zaidi and Sub Inspector Taimoor Haider conducted raid at his residential place along with FIA team and arrested a human trafficker who was identified as Muhammad Shouqat Hayat son of Muhammad Ali who is a resident of Jhang. As per details, the accused was running an illegal business of sending innocent people abroad after extorting huge amounts from them after showing golden dreams of their lucid future abroad. Muhammad Shouqat was involved in several cases of fraud, money extortion and sending people abroad by using illegal and inhuman means.

T

ISLAMABAD

TAriQ DerYA

www.customsbulletin.com

T

he Customs Anti-Smuggling Organization (ASO), Peshawar, seized narcotics including hashish, opium and heroin worth Rs51.40million during Virst seven months (July to January) of Financial Year (FY) 2016-17.

Additional Collector Peshawar Fazal-e-Samad told Customs Today that, following the border management’s steps under the National Action Plan, the ASO has intensiVied anti-smuggling operations in Khyber Pakhtun Khawa.

Fazal said that during Virst 7 months the ASO seized 144.05 kilogram hashish valued Rs14.05 million out of which 4.6 kilogram hashish priced Rs0.23million was seized during the month of January.

He told Customs Today that from July to January the ASO seized 38.7 kilogram opium worth Rs7.35 million out of which 32 kilogram valued Rs6.40million was seized in the month of January adding the ASO seized 12 kilogram heroin worth Rs30million during the month of January.

Fazal-e-Samad said that during the month of January the ASO seized 48.6 kilogram narcotics worth Rs36.63 million whereas the total narcotics seized during first 7 months was 1947.05 kilogram which valued Rs51.40 million in the international market.

Fazal-e-Samad added that the ASO is utilizing its maximum capacity to curb smuggling attempts across and inside the border. He expressed the hope that the ASO will continue its extraordinary performance to break the smuggling chain and contribute a handsome amount to revenue.

Meanwhile, The Model Customs Collectorate of Peshawar’s performance has shown decline due to levy of one percent Infrastruc-

ASo seized 38.7 kilogram opium worth rs7.35 million out of which 32 kilogram valued rs6.40million was seized in the month of January adding the ASo seized 12 kilogram heroin worth rs30million during the month of January

SHc summons tax officals on 22nd March

T

KARACHI

M BiLAL

www.customsbulletin.com he Sindh High Court (SHC) has directed that if nobody appears on behalf of the Customs Department on the next hearing, instant reference application may be dismissed for non-prosecution. The court observed this on a reference application Vile by Commissioner Inland Revenue Zone-01, Large Taxpayer Unit against impugned order of the appellate tribunal for recov-

ery of Rs 363,647 from M/s Wali Oil Mills (Private) Limited.

A two-member bench, headed by Justice Aqeel Ahmed Abbasi, was hearing the application. During the hearing no one was present on behalf of the Custom Department, therefore, the court adjourned the hearing for March, 22, 21017 with its observation that: “No one was present on behalf of the Custom Department in spite of service of court’s notice on Chief Commissioner Zone-01, LTU Karachi, as an indulgence and last

chance the matter is being adjourned for March 22, 2017, as requested by the counsel for the respondent. However, with caution that if nobody appears on behalf of the applicant on the next date of hearing, instant reference application may be dismissed for non-prosecution”. Earlier, counsel for the applicant stated that a recovery notice of Rs 363, 647 on account of input tax adjustment on suppliers/ purchases made for blocked/ black listed suppliers to the respondent (M/S Wali Oil Mills (Private) Limited.

ture Development Cess on imported items but this matter will be resolved soon between the Chamber of Commerce and the KP government.

The business of Peshawar dry port suffers due to Infrastructure Development Cess, and the business community is demanding that the said cess is already collected by the Sindh government and levy of the same tax by the KP government means double taxation.

rs370 million approved for 71 schemes he District Development committee (DDC) approved funds Rs370 million for 71 development schemes in the district. This was decided in a meeting of DDC here on Thursday presided over by Deputy Commissioner Liaquat Ali Chattah. In the meeting he said that that Rs370 would be spent on construction work of sewerage system, drainage, repair and construction of roads.

T

4

www.customsbulletin.com

SAF expresses desire to enhance cooperation with PAF Saturday February 11, 2017

Business

ISLAMABAD: Senegal Air Force (SAF) on Thursday expressed the desire to enhance bilateral relations with Pakistan Air Force (PAF).

The desire was expressed by the visiting Chief of Air Staff Senegal Air Force Brigadier General Birame Diop here on Thursday while meeting with Chief of Air Staff Air Chief Marshal Suhail Aman at his office. On his arrival at the Air Headquarters, the distinguished guest was received by Chief of Air Staff Air Chief Marshal Sohail Aman.

Sources said that the visiting guest called on the Pakistan Air Chief in his office.

world considers pakistan as destiny for investment PESHAWAR

cuSToMS BuLLeTin reporT www.customsbulletin.com

F

inance Minister Mohammad Ishaq Dar said Pakistan was being acknowledged globally by the international media and financial community as an attractive destination for business and investment.

Extending warm welcome to a group of corporate and business leaders from around the world, currently on a visit to Pakistan to explore business and investment opportunities, he highlighted the report recently published by PricewaterhouseCoopers (PwC) which had projected Pakistan to

cotton price steady KARACHI

cuSToMS BuLLeTin reporT www.customsbulletin.com

he cotton market maintained its last two days’ posture with prices remained on the higher side and trading activity staying fairly brisk.

This was in line with global trend where leading cotton markets are currently holding high ground and only moving in a narrow frame. Prices on the New York cotton market were hovering between a seasonal high of 75 and 77.21 US cents per lb. Similarly, Indian cotton prices have risen to Rs42,000 per candy 356 kilograms.

T

become the 20th largest economy by 2030 and the 16th largest economy by 2050.

The Vinance minister also high-

lighted the report published earlier this week by Barron’s which had described Pakistan as the ‘next big thing’ and ‘the Vlag bearer of the pos-

itive changes taking place in the South Asian nations.’

He said as a result of the investor friendly policies of the present government, and the economic turnaround achieved in the last three years, various reputable international investors and companies, including Renault, Arcelik and FrieslandCampina, had been frequently visiting Pakistan and interacting regularly with both the private sector and public ofVicials in Pakistan to explore business and investment opportunities. He said the group’s visit to Pakistan was very timely and urged the members of the visiting group to also beneVit from the business and investment opportunities available in the country extending the government’s full cooperation in this regard.

'pakistan has potential in many sectors to increase growth rate’ P

ISLAMABAD

cuSToMS BuLLeTin reporT www.customsbulletin.com

arliamentary Secretary for Finance Rana Muhammad Afzal Thursday said Pakistan had potential in many sectors to increase growth rate.

He said continuity of democratic and political system would help to strengthen economy of the country.

He said there was need to engage development oriented parties to achieve progress in every sector. He said tax collection system had been

improved to achieve the target. Rana Afzal said development work in the provinces had also been increased due to better tax collection system.

He said dynamic policies of the present government would help to generate employment, besides improve the health and education sectors. Parliamentary Secretary was of the view that modern technology could also help the farmers to enhance the productivity of crops.

“Utilizing advance technology in the agriculture Vield, Pakistan would be in a position to export the products in an appropriate manner, “ he said.

To a question, he said international institutions had also been giving positive reports about rapid progress in Pakistan. He said progressive indicators would enhance conVidence of the foreign investors to invest in Pakistan. Meanwhile, Pakistan has decided to borrow $600 million from China to boost its dwindling foreign currency reserves that have depleted by $1.7 billion since expiry of the International Monetary Fund programme. It is the second time in the last three years that the Pakistan Muslim LeagueNawaz government.

no import of poultry feed from any country LAHORE

cuSToMS BuLLeTin reporT www.customsbulletin.com

akistan Poultry Association (NZ) Chairman Dr Abdul Karim said on Thursday neither poultry feed nor any ingredient used in it was imported from any country. Addressing a press conference at the Lahore Press Club (LPC), the PPA chairman and other representatives dispelled an impression that pork meat was used in ingredients of poultry feed.

They said every ingredient of the poultry feed, including maize,rice and fish besides other particles were available in bulk quantity in the country and there was no need of import of any ingredient from any country.

They refuted allegations of using illegitimate fat or any other untested item in poultry feed. They said about 1.5 million people in the country were associated with the poultry sector and white meat was the only source of cheap protein to a common man. They added Rs750 billion had been invested in the sector in which 85 per cent feed and 100 per cent poultry processing plants had been established in Punjab. They demanded the government to investigate the matter of spreading baseless and fake news item regarding the use of pork meat in poultry feed so that trust of farmers could be restored in poultry feed prepared in the country.

P

Trade deficit widens 29 percent ISLAMABAD

P

cuSToMS BuLLeTin reporT www.customsbulletin.com

akistan’s trade deVicit in merchandise rose nearly 29 per cent year-on-year to $17.428 billion in the Virst seven months of the current Viscal year because of falling exports and increase in imports. The deVicit stood at $2.957bn in January, a rise of 75pc compared to $1.688bn a year ago, the Pakistan

Bureau of Statistics said on Thursday. The drop in export proceeds, along with fall in remittances, has contributed to the rising current account deVicit this Viscal year.

In July-January, the overall import bill rose 13.7pc year-on-year to $29.113bn. In January alone, it increased 37.1pc to $4.737bn. Machinery imports are on the rise because of increase in infrastructure investment, especially construction of roads.

Export proceeds during the seven-month period fell 3.2pc to $11.685bn. In January, however, export proceeds grew 0.74pc, mainly because of increase in exports of textile and clothing. The marginal increase shows that exports of the garments sector, along with other value-added sectors, to Europe have started picking up under the GSP+ preferential tariff scheme.

Under a three-year strategic trade policy unveiled last year, the govern-

ment set an annual exports target of $35bn by 2018. However, the policy, announced in April 2016, has yet to be implemented. Contrary to this, the prime minister has announced Rs180bn subsidy package for the textile, clothing and four other sectors, namely sports, surgical, leather and carpets. The package will be applicable until June 30, 2018. The commerce ministry has yet to receive funds to implement the trade policy to stem the decline in exports. The Vi-

nance ministry has also withheld Rs30bn collected as export development surcharge meant to be used for facilitating exporters and has allegedly been using those funds for other purposes. According to a World Bank report titled ‘South Asia’s Turn: Policies to Boost Competitiveness and Create the Next Export Powerhouse’, Pakistan needs to implement a set of policy actions aimed at improving the business environment, connecting to global value chains.

www.customsbulletin.com

ADVERTISEMENT

5

6

www.customsbulletin.com

T

T

www.customsbulletin.com

ISLAMABAD

M ArSHAD

www.customstoday.com he Federal Board of Revenue (FBR) does not charge double taxation on income as levies sales tax on goods whereas provinces levy sales tax on services. Thus there is no double taxation in respect of levy of sales tax.

Double taxation is a taxation principle referring to income taxes paid twice on the same source of earned income. It can occur when income is taxed at both the corporate level and personal level. Double taxation also occurs in international trade when the same income is taxed in two different countries.

A well placed ofVicial source at FBR explained Customs Today that income tax was a tax on person’s income and was leviable on taxable income. Similarly sales tax is a tax on sales of goods. Both these taxes are leviable under the existing provision of Income Tax Ordinance, 2001, and Sales Tax Act, 1990, respectively.

However, the source said that the double taxation on income (income tax) and transaction (sales tax) arose when it was levied twice

7

Saturday, February 11, 2017

on same income or transaction by the same jurisdiction or the tax on same income or transaction was levied by two jurisdictions simultaneously.

In respect of double taxation on income by two jurisdictions the source observed that again foreign tax credit could be claimed under section 103 of Income Tax Ordinance, 2001, which eliminated double taxation.

In Pakistan, the source added that the sales tax rate was a tax charged to consumers based on the purchase price of certain goods and services. The benchmark for the sales tax rate refers to the highest rate. Revenues from the sales tax rate are an important source of income for the government.

“Sales tax is chargeable on all locally produced and imported goods except computer software, poultry feeds, medicines and unprocessed agricultural produce of Pakistan and other goods speciVied in Sixth Schedule to The Sales Tax Act, 1990” the source maintained.

The source recalled that sales tax was a provincial subject at the time of partition. It was being administered in the provinces of Punjab and Sindh as provincial levy. Sales tax was declared a federal subject in 1948 through the enact-

ment of General Sales Tax Act, 1948 and in 1952, this levy was transferred permanently to the Central Government.

Sales tax was levied at the standard rate of 6 pies per rupee at every stage whenever a sale was effected. The trading community protested against this system, and this resulted in the enactment of Sales Tax Act 1951.

Br ce at f e r u o s cial com ed offi hat in c t a l y p a l d s To e and A wel ustom ncom i c ’s d n e o in pers me. expla e inco tax on l a b a s x a of ta tax w sales le on n b o a x i v a le sat was le leviab s tax i e e l r a a s s y rl taxe ome Simila of inc these n h t o i o s i B v . ct, goods ng pro Sales Tax A i t s i x nd the e 001, a 2 under , e c ely n rdina pectiv s e r , Tax o 1990

8

www.customsbulletin.com

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

fear of real estate bubble

A

National Assembly committee has expressed the apprehensions that a huge amount of black money is being injected into the property market and possibility of another real estate bubble cannot be ruled out. It happened in Lahore a decade ago when prices of lands were disproportionately increased but soon the bubble burst and recession griped the real estate sector for the coming years. The sector is allegedly in trouble since the current government introduced withholding tax on sale and purchase of land as well as binding the buyers to reveal their sources of income. Earlier, the real estate agents from major cities of the country, including Lahore and Karachi,portrayed very grim picture of the property sector following the imposition of withholding tax. According to a report issued

by Real Estate Investment Forum, the real estate business suered after the government involved the Federal Board of Revenue to evaluate the property prices to calculate the amount of taxes during sale and purchase.

The government decision backfired in practical terms as the investors, including those having black money, preferred to invest in Dubai and Kuala Lumpur. In Dubai, Pakistani investors are among the top countries, including Britain and Saudi Arabia, who heavily invested in the property market.

Imposition of taxes at home has sharply pulled down the investment graph in the sector. As a natter if fact at least 42 industries are directly and 40 are indirectly associated with the business.

Finance Minister Ishaq Dar is proud of his tax measures, saying there is a huge collection of revenues under the head of the withholding tax. There is no doubt he is true to his words, but the industries which were associated with the real estate sector had started incurring losses. Recession in the industry means low tax collections. Mr Dar has implemented a right decision at a wrong time. Now the National Assembly committee is ready to assess the report to ascertain the claims made by property dealers that the property sector was heading toward a collapse. A major portion of the economy of Pakistan is undocumented and some of the businessmen are habitual tax evaders, but the matter needs a careful handling.

new infrastructure finance policy A

LAHORE

Dr AfTAB AfZAL

www.customstoday.com

ccording to newspaper reports, the government has approved a summary on Infrastructure Finance Policy 2017 through a premier federal government institution and a consultative forum, the Economic Coordination Committee of the Cabinet.The policy envisages a long-term infrastructure Vinance framework to attract foreign direct investment and mobilise private Vinancing within the country for infrastructure projects. The policy will also cover demand and supply sides of Vinance in the wake of the economic reforms agenda launched by the current

government. The government claims it has achieved macroeconomic stability in the Virst three years tenure in the ofVice and is now focusing on attaining higher sustainable and inclusive growth.

The government also claims that Pakistan has achieved the highest growth of 4.7 percent in eight years and there is a need to carry on the growth momentum. The development and expansion of infrastructure is necessary and inclusion of the private sector to invest and Vinance projects is imperative to cater to the needs of the growing economy. According to the ofVicial circles, the public sector investment is not sufVicient to support the expansion of development projects and private sector involvement is encouraged

in the present situation.

The government has consulted key stakeholders to Vinancethe infrastructure projects in line with the policy framework. It also seeks diversiVication of Vinancing sources and strengthening of key institutions to attract private investment in the sector. Under the policy, an action plan will be launched to meet the Vinancing requirements for a long time through an efVicient policy, good practices for infrastructure projects, support investment and encourage the development of Vinance framework. The government will also look into increasing the quantum of infrastructure Vinancing from the private sector.The sectors covered under the policy include ports, terminals, airports, railways, waterways,and renewable power infra-

structure. The China Pakistan Economic Corridor is the best example of foreign investment and there is no dearth of funds at the local level if business community is persuaded to participate in the development process. Through the new policy, it is hoped that the government will be able to increase infrastructure investment through internal and external resources. The policy will also facilitate and increase the role of the private sector in the nation building programme. The government should take the steps by involving the opposition parties into conVidence. As parliament is intact, bills should be passed by the assembly to launch the development projects, leaving little room for the next government to create any hindrance in the development process.

9

www.customsbulletin.com

UAE, Turkey eye increased trade ties at key talks DUBAI: The UAE Economy Minister Engineer Sultan bin Saeed Al Mansoori will lead a top-level economic delegation to Turkey for the Joint Economic Committee (JEC) meeting between the two countries. The meetings will be held in the Turkish capital of Ankara on February 6 and 7 and will be chaired by Al Mansoori and Deputy Prime Minister of Turkey Mehmet Şimşek. Engineer Mohammed Ahmed bin Abdul Aziz Al Shehhi, the UAE Ministry of Economy’s Undersecretary for Economic Affairs, and Husnu Dilemre, the Acting Deputy Undersecretary of Turkey’s Ministry of Economy, will lead the technical and preparatory meeting prior to the JEC ministerial meeting in the presence of Khalifa Shaheen Al Marar, UAE Ambassador to the Republic of Turkey, along with a number of senior officials and government representatives of both countries.

cpec project not to affect local industry says rafique rajwana ISLAMABAD

cuSToMS BuLLeTin reporT www.customsbulletin.com

Chambers

iMc assures to resolve businessmen issues through consultations C

ISLAMABAD

cuSToMS BuLLeTin reporT www.customsbulletin.com

alik Muhammad Rafique Rajwana, Governor Punjab has said that CPEC project was a game changer for Pakistan and would not affect the local industry. He said Chinese authorities have assured they were interested in joint ventures with Pakistan in CPEC projects and this arrangement would enable local industry to flourish. He said this while addressing business community at Islamabad Chamber of Commerce and Industry. He said there was a need to provide vocational trainings and skills development of youth to produce

apt ® Shahbaz Nadeem, Director Municipal Administration, Islamabad Metropolitan Corporation (IMC) along with Zafar Iqbal Additional Director and Khalid Hussain Abbasi Assistant Director visited Islamabad Chamber of Commerce and Industry to discuss VireVighting requirements for businesses & industry, board tax and trade license issues. Representatives of various markets were also present at the occasion.

Capt. ® Shahbaz Nadeem said that to save the businesses and industrial units from incidents, IMC wanted to bring their VireVighting requirements at par with international standards as it was in their own interest. He said this issue will be resolved in consultation with stakeholders and no coercive measures would be taken for compliance.

Talking about board tax and trade license issues, he said that local government in Islamabad needed revenue to run its affairs. He said the annual expenditure of IMC was Rs.15 billion while its total tax

skilled labor for CPEC projects and reduce unemployment.

He said business community was the backbone of the economy and government would take measures to create conducive environment for business activities. He said all economic indicators were showing positive trend that have been recognized at international forums. He said Prime Minister Nawaz Sharif has offered Kissan package and incentive package for exporters and added that government wanted to take further initiatives to facilitate the growth of business activities. He said ICCI should send a written proposal and he would take up it with relevant authorities for the establishment of a new industrial estate in Islamabad Region. He said FBR should take measures to minimize the trust deficit between tax collectors and taxpayers.

Dubai chamber launches second edition of Dubai Smartpreneur competition

M

Saturday February 11, 2017

T DUBAI

cuSToMS BuLLeTin reporT www.customsbulletin.com

he competition is held in line with the vision of HH Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice-President and Prime Minister and Ruler of Dubai, to transform Dubai into smart city.

The competition gives entrepreneurs the opportunity to become part of Dubai’s transformation into a global benchmark smart city. It is open to all UAE-based entrepreneurs whose entries will be critiqued by a judging panel. Participants are required to submit their business ideas in line with the Smart Dubai dimensions that include smart economy, smart living, smart mobility, smart governance, smart

collection was only Rs.1 billion and urged that business community should cooperate with IMC in improving revenue generation. However, he assured that board tax and trade license issues would also be resolved through consultation.

Speaking at the occasion, Khalid Iqbal Malik, President, Islamabad Chamber of Commerce and Industry said that business premises and industrial units were receiving notices for compliance of VireVighting requirements but meeting these re-

environment, and smart people.

Participants who qualify will attend two full-day workshops on sector-speciVic training, mentorship, building relationships, and developing a full business plan. The Virst three winners will get a cash prize and the opportunity to join Tejar Dubai entrepreneurship development programme for a year which will help them turn their business ideas into reality. “The beneVits of this competition go far beyond Vinancial rewards. Participants also get a unique chance to network with industry inVluencers, interact with mentors, and gain valuable feedback needed to improve and grow their businesses,” said HE Hisham Al Shirawi, 2nd Vice-Chairman, Dubai Chamber. HE Dr. Aisha bin Bishr, Director Gen-

quirements was not feasible due to very high cost. He stressed that IMC should Vinalize these requirements as per need of different sectors of businesses and industries. He said IMC should ensure availability of Vire Vighting vehicles in industrial areas and markets to cope with any incident promptly. He said CDA few years ago had agreed to charge Rs.60/sq yds as board tax from shops which was not implemented. He stressed that the already agreed rate should be implemented as traders were ready to pay

eral of the Smart Dubai OfVice, added that the entrepreneurs are essential to the success of the government’s smart city ambitions.

The second cycle of Smartpreneur competition will be an opportunity to discover the best products and services to improve city experiences. A panel discussion was held during the event, focusing on the progress achieved by the UAE government on smart city and innovation-focused initiatives, as well as the initiatives and engines are expected to drive sustainable growth in the future. Last year, Dubai Chamber received 350 ideas during the Virst cycle of the Dubai Smartpreneur Competition. The competition this year will take place under the umbrella of Dubai Start Up Hub, the ofVicial online hub of the Dubai.

this tax. He said trade license fee in Islamabad was quite high as compared to Rawalpindi and stressed that IMC should revise high trade license fee. It was agreed that representatives of ICCI and IMC would hold further meetings to sort out these three issues amicably. Khalid Malik Senior Vice President, Tahir Ayub Vice President ICCI, Tariq Sadiq, Ajmal Baloch, Khalid Chaudhry, Muhammad Hussain and representatives of various markets also highlighted their issues for the attention of IMC.

Saffron exports up by 37 percent n official said the volume of Iran’s saffron exports rose by 37 per cent in the first eight months of Iranian calendar year (began March 21, 2016) as compared with the corresponding period a year ago.

Deputy Head of Iran’s Union of Sellers and Exporters of Saffron Gholamreza Miri described saffron market conditions as stagnant saying “exports of the product are being carried out as usual though Iran Customs Administration (IRICA) has not yet announced relevant statistics for the past two months.” He went on to state that in the eight-month period nearly 78 tons of saffron were deployed to destination markets, a figure which indicates a 37% rise in comparison with the similar period last year.

Miri also reported that saffron prices had dropped by one or two per cent saying “the price for each kilogram of the one type has declined by about 30 per cent. –CB Report

A

10

www.customsbulletin.com

Faisalabad Appraisement generates Rs1425m surplus collection Saturday February 11, 2017

National faisalabad fiA arrests human trafficker from Jhang FAISALABAD

nAeeM SHeikH

www.customsbulletin.com

FAISALABAD: The Model Customs Collectorate, Appraisement, surpassed the allocated revenue target set for the first seven months (July-January) of the Fiscal Year2016-17 as it collected Rs6304.37million against the set target of Rs4879.56million. So the surplus collection is Rs1425million.

As per details, the custom appraisement was assigned Rs3842million target in the wake of sales tax and it surpassed the target by121 percent since it collected Rs4664.23million during said period. Under the head of customs duty, it collected Rs1567.29million against the target of Rs842million.

corruption needs to be put down with iron hand: chairman nAB Q LAHORE

M iMrAn MeHAr

www.customsbulletin.com

he Federal Investigation Agency (FIA) arrested a human trafficker from Jhang during an action.

Sources told Customs Today that Deputy Director FIA Syed Imam Zaidi and Sub Inspector Taimoor Haider conducted raid at his residential place along with FIA team and arrested a human trafficker who was identified as Muhammad Shouqat Hayat son of Muhammad Ali who is a resident of Jhang. As per details, the accused was running an illegal business of sending innocent people abroad after extorting huge amounts from them after showing golden dreams of their lucid future abroad. Muhammad Shouqat was involved in several cases of fraud, money extortion and sending people abroad by using illegal and inhuman means. Accused extorted Rs8,00,000 from the complainant Taimoor Safdar son of Safdar Ali for overseas employment to UK.

T

Sialkot ASo seizes cumin seeds priced rs125000 nti-Smuggling Organization (ASO), Sialkot, has confiscated the smuggled Indian origin cumin seeds worth Rs125000 under the Kashmir Transit Trade on Sambrial Road on the other day. Under the directions of Assistant Collector and Incharge ASO Ali Mohtashim Minhas, Superintendent, ASO, Sardar Manzoor constituted a team under the supervision of Inspector Arshad Maqbool to check the vehicles on Sambrial Road.

The said inspector intercepted a van with registration No: MR-3212 (AJK) and recovered the smuggled Indian origin cumin seeds from the secret boxes of van.

The team asked Driver Rashid about the payment of customs duty of the recovered cumin seeds but he failed to prove the legal status of the goods. –CB Report

A

amar Zaman Chaudhry, Chairman, NAB, said corruption is a curse. That really is a poison.

We must put down it with an iron hand. NAB is committed to eradicating corruption by adopting Zero Tolerance Policy across the board for corruption-free Pakistan. He said this while chairing a meeting to review the NAB’s performance at the NAB Headquarters on Friday.

He said the NAB is essentially a complaint driven organization established to eradicate corruption and recover looted money from corrupt. The NAB has chalked out a very comprehensive operational methodology for proceeding of cases, complaint veriVication, inquiry and investigation. The NAB’s investigation

ofVicers strictly follow the Code of Conduct and zero tolerance policy

on the basis of evidence as per law.

The year 2014 can be called a year of

reinvigoration of NAB, he said. He said the concept of a “Combined Investigation Team” (CIT) has been introduced where two investigation ofVicers and a legal consultant are working as a team for a fair, transparent and unbiased inquiry/ investigation. He said the NAB has recovered Rs285billion which all has been deposited into the national exchequer which is a record achievement.

He said the NAB has received 321,318 complaints which were all disposed of according to the law. The NAB has authorized 7124 inquiries, 3616 investigation and Viled 2610 cases in the respective accountability courts to proceed against alleged corrupt people since its inception.

In a short span of 16 years, NAB’s performance is a record achievement which is better than any investigation agency of the world.

Appraisement east collects rs 30,674m taxes T

KARACHI

AfTAB cHAnnA

www.customsbulletin.com

he Model Customs Collectorate Appraisement East has collected Rs 30,674 million taxes and duties under the heads of customs duty, sales tax, income tax and federal excise duty during January 2017.

According to sources, the Customs Appraisement East collected Rs 30,674 million taxes and duties, including Rs 10,583 million customs duty, Rs 14,994 million sales tax, Rs 4,929 million income tax and Rs 168 million federal excise duty during the month.

While showing its extra ordinary performance, the Appraisement East Collectorate collected Rs 2,264 million on the last working day i.e. January 31, 2017 that include Rs 809 million customs duty, Rs 1,106 million sales tax, Rs 342 million income tax and Rs 8 million federal excise duty. So far, the sources said that Customs Ap-

praisement East has collected Rs 175,479 million taxes and duties from July 1 to January 31,

2017 that included Rs 61,247 million under the head of customs duty, Rs 84,034 million

sales tax, Rs 29,394 million income tax and Rs 804 million under head of federal excise duty.

11

www.customsbulletin.com

Excise, narcotics collects Rs24110m tax: Chawla KARACHI: Sindh Minister for Excise and Taxation and Narcotics Control Mukesh Kumar Chawla has directed officers concerned to boost-up their efforts for achieving the assigned targets in all heads for the remaining of current fiscal year.

This he said while presiding over a meeting of all Regional Directors ET&NC here in his office Wednesday.

Director General Excise and Taxation and Narcotics Control Shoaib Ahmed Siddiqui, while briefing the meeting said that so far ET& NC Department had collected Rs24110.098 millions and the target for whole financial year 2016-17 was Rs52610 millions and most probably we would achieve the target before the fiscal year ends.

Deputy collector Asma issues notice to owner of non-duty paid vehicle FAISALABAD

cuSToMS BuLLeTin reporT www.customsbulletin.com

he Customs Adjudication Deputy Collector Asma Hameed has issued a show cause notice to owners of non-duty paid Corolla Car. Sources told Customs Today that Anti Smuggling Organization (ASO) intercepted a Corolla Car bearing registration number VRF.76.The ASO team asked the owners of the vehicle who was identified as Sultan Mahmood to show documents regarding legal import of the vehicle but he failed to produce any legal documents. Therefore, the ASo team impounded the vehicle under Customs laws and forwarded

T

the case to Customs Adjudication for further legal action.

Now, Deputy Collector Asma Hameed issued notices to the accused person on the violation of Section 10-A. 89(1) and 156(1) of the Customs Act, 1969 punishable under Section 156(1)89 of the Customs Act, 1969 and served him a show cause notice as to why the seized vehicle should not be confiscated under aforementioned provisions of the law.

However, the adjudication has directed the accused person to file reply on next date of hearing. The seizing agency has also been directed to file reply in the respective case. The adjudication authority also directed Deputy Collector Muhammad Rizwan to attend the hearing on schedule date along with relevant record. It is necessary to mention here that Customs Adjudication authorities expedited their efforts to conclude hearing of pending cases on priority basis.

National

Mamnoon rejects Master Tiles appeal filed against fTo decision T

LAHORE

SAJiD nAwAZ

www.customsbulletin.com

he President of Pakistan has rejected the appeal Viled by the Master Tiles against the decision of the Federal Tax Ombudsman.

According to details, Master Tiles had Viled a complaint before the Federal Tax Ombudsman (FTO) on the grounds that Intelligence and Investigation (I&I) wing of the Federal Board of Revenue (FBR) had issued a show case notice to appellant against the discrimination of tax returns of Rs673.60million in wealth statement and Rs10 billion under the head of sales.

He said in the appeal that the FBR sent the show case notice during the period of time when one related SRO was suspended and other was not issued yet. In-between the time period, the FBR was not authorized to send the show case notice. The appellant also mentioned that the ofVicers of the FBR also leaked the secrecy of the company to the press and damaged the reputation of the appellant company. The counsel for appellant prayed that the FTO may cancel the show case notice issued to appellant company.

On the other side, the FBR representative argued before the FTO that no SRO was suspended and allegations by the appellant are baseless.

After hearing the arguments from both sides, FTO Member Muhammad Munir Qurashi has rejected the complaint of the Master Tiles and remarked that appellant failed to produce evidences before the FTO. The FTO member also remarked that on the point of damage of goodwill, defamation laws exist and appellant should appeal on the

Saturday February 11, 2017

relevant judicial forum. The FTO learned that goodwill damages were not done deliberately.

In the Vinal decision, the FTO directed the chairman FBR to interfere in the case personally on any quarry. After that decision on 21st of January 2016, both FBR and Master Tiles Viled a review petition before the FTO. The Master Tiles mentioned in the review the name of the FBR ofVicer and claimed that the said ofVicer leaked secret information to the press.

fBr collects rs1,690b in seven months with 9pc growth ISLAMABAD

M fAiZAn

www.customsbulletin.com

ederal Board of Revenue has continued growth in revenue collection and its Customs Department is showing tremendous performance by standing on top with 21 per cent growth. FBR has totally collected Rs1,690 billion tax revenue in seven months (July 1, 2016 to January 31, 2017) of current financial year with 9 per cent growth as the Board collected Rs1,584 billion during the same period of previous financial year (July 2015 to January 2016). This is very healthy sign for achieving revenue target of Rs3,621 billion set for the ongoing financial year.

FBR Chairman Dr Muhammad Irshad has also decided to further speed up the efforts for revenue collection. According to the provisional data till January 31available with Customs Today, The FBR has collected Rs680 billion under the head of income tax, while the last year in same period FBR had collected Rs624 billon. There is 9% growth in income tax revenue. FBR’s Customs wing collected Rs257 billion custom duties with 21% growth during the corresponding period while it collected Rs213 billion during the same period last year.

F

fBr seeks online vehicle registration data

T

KARACHI

cuSToMS BuLLeTin reporT www.customsbulletin.com

ax authorities are in talks with the provincial motor registration authorities to retrieve online data of vehicles buying and selling in an attempt to net the untaxed money and increase number of Vilers, ofVicials said on Wednesday.

OfVicials said the FBR planned a ‘massive’ drive against the black money involved in the purchase of motor vehicles. “We are negotiating with the provincial authorities to access data of registration and transfer of motor vehicles,” said an ofVicial. An ofVicial at the Regional Tax

OfVice Karachi said the FBR is initially creating link with the database of Sindh Excise and Taxation Department for accessing the motor vehicles data on real-time basis.

OfVicials in the Sindh Excise department also conVirmed that the discussions with the FBR are underway. FBR chairman Muhammad Irshad, at a meeting, said the revenue body is engaged in discussions with the departments of all the four provinces to access the motor vehicle data. Tax ofVicials said the purpose of obtaining data is to identify the sources of payments made by individuals as well as increase the number of income tax return Vilers.

The ofVicials said huge undocu-

mented money is involved in the transactions of motor vehicles’ purchases. Various estimates said the undocumented economy in Pakistan is almost equal to the formal one.

Auto sales were recorded at 122,347 units during the Virst half of the current Viscal year, according to the Pakistan Automotive Manufacturers Association. Industry experts said the total annual sales are expected to increase to 0.5 million in the next Vive years.

FBR sources said the data obtained from provincial revenue authorities would include registration of both locally-manufactured automobiles and imported motor vehicles. The FBR, through broadening

of tax base drive, collected data of 975,771 transactions of the past three years from motor vehicle registration authorities of all the provinces. The sources said the data provided by the registration authorities is not accurate, making it difVicult for tax departments to take action. The ofVicial said the real-time data sharing would lead to the collection of advance tax by the provincial tax authorities. The FBR, through Finance Act 2015, introduced higher rate of withholding tax for non-Vilers of income tax returns at the time of registration or transfer of motor vehicles. Number of tax return Vilers is still on the lower side despite increase in car sales.

12

www.customsbulletin.com

Thailand delays launch of $2.9b infrastructure fund to Q2 Saturday February 11, 2017

World

BANGKOK: Thailand plans to launch a 100-billion baht ($2.85 billion) infrastructure fund in May or June this year, the finance minister said on Wednesday (08/02), as the military government seeks to fund investment projects to boost a sluggish economy.

Last month, a ministry official said the fund would go public in the first quarter. The “Thailand Future Fund” will initially sell units worth 40 billion baht to 50 billion baht to Thai and foreign investors, Apisak Tantivorawong told reporters.

“The fund will also be an alternative for people because its return will be higher than deposit rates, likely at 7 percent to 8 percent,” he said.

Man allegedly tried to smuggle people to nZ

cigarettes worth rs10m seized at Mundra port AHMEDABAD

cuSToMS BuLLeTin reporT www.customsbulletin.com

WELLINGTON

cuSToMS BuLLeTin reporT www.customsbulletin.com

A

A

n alleged kingpin of Indonesia’s people smuggling network has faced court over organising a boat on which Australian ofVicials allegedly paid crew more than $US30,000 ($NZ41,380) to turn back from New Zealand.

Captain Bram’s involvement with the boat at the centre of the cash for turn-back scandal began when he met the alleged “mastermind” of the failed journey in 2014, prosecutors told Rote Ndao Court on Wednesday.

By early 2015, Mr Kugan, also known as Vishvanathan Thineshkumar, asked Bram to Vind a boat, crew and captain which would be used to transport people to New Zealand. Mr Bram, whose real name is Abraham Louhenapessy, was allegedly given 1.5 billion rupiah ($NZ154,395) to carry out the directions.

iMf calls on Turkey to tighten its budget MF executive directors also emphasised that the Turkish central bank should move to protect the depreciated lira amid “high and rising inflation” and “intensifying external pressures”. Turkey’s economy took a downturn following the attempted coup in July 2016, which also further weighed on tourism revenues that were already falling after terrorist attacks in the country. In addition, Turkey continues to contend with insecurity and conflicts within and beyond its borders, and the influx of refugees from neighbouring Syria. According to the World Bank, these saw the country’s GDP plunge by 2.7% in the third quarter of last year, compared to 6.1% in 2015, following the attempted coup and its aftermath its largest drop since 2009. –CB Report

I

He recruited others, who linked him up with a boat, captain and crew. Those willing to make the journey were told they would make up to 150million rupiah ($NZ15,439) if they were successful in getting to New Zealand. While Mr Bram was busy organising the boat, prosecutors say Mr Kugan was rounding up the people to go into it. Sixty-Vive

people from Sri Lanka, Bangladesh and Myanmar paid around $US6000 each, court documents state. The boat left Central Java on April 30, 2015 and were stopped twice by Australian ofVicials. The Virst time they were warned with a brochure written “You cannot enter Australia if you do not have a visa or complete document”.

china’s oil demand growth at three-year low in 2016

C

hina’s 2016 oil demand grew at the slowest pace in at least three years, Reuters’ calculations based on ofVicial data showed, the latest indication that demand from the world’s largest energy consumer has diminished.

China’s implied oil demand growth eased to 2.5 percent in 2016, down from 3.1 percent in 2015 and 3.8 percent in 2014, Reuters’ data showed, led by a sharp drop in diesel consumption and as gasoline usage eased from dou-

ble-digit growth. The slowing occurred as the economy expanded by only 6.7 percent in 2016, the slowest pace in 26 years. “Inventory-adjusted diesel posted the Virst annual drop in 2016,” Harry Liu, associate director of oil markets with IHS Energy said. “Diesel consumption has been hit by an extended period of Vlood in the second quarter and less demand from the logistic sector as efViciency continue to improve” Gasoline consumption was 3.6 percent higher than 2015. –CB Report

DRI team seized Indonesian cigarettes worth Rs1 crore from a container coming from Dubai at Mundra Port. The agency seized a container comprising baby footwear behind which the cigarettes were concealed.

Meanwhile, Customs department at the Foreign Post OfVice in Delhi seized 1,810 grams of narcotics, concealed in 20 separate DVD writers bound for Australia. OfVicials suspect the drugs to be party drugs with valuation worth crores in the international market.

The seizure was made after weeks of scanning parcels bound for foreign countries after a tip-off was received by the Customs department. “We got suspicious when we found a Victitious name on the list of parcels bound for Australia, after

R

russia lost $26b on oil, gas exports ussia is making less money on oil and gas exports, according to the data published today by the Federal Customs Service. In 2016, the revenues from oil and gas exports declined by 17.7% (compared to 2015) and amounted to $73.676 billion. Gazprom’s revenues from gas exports declined by 25% and amounted to $31.28 billion. The service also noted that the oil export increased by 4.2% to 254.767 million tons. The oil export to the CIS countries amounted to 236.195 million tons against 221.603 million tons in 2015, showing an increase of 6.58%. In terms of money, the exports declined to

iran, Hungary eye better trade ties

V

TEHRAN

cuSToMS BuLLeTin reporT www.customsbulletin.com

iktor Orbán, the Prime Minister of Hungary received, on Wednesday, Iran’s Economy Minister Ali Tayyebnia who is visiting Budapest. “Iran plays a very important role in preserving peace and stability in the Persian Gulf,” said

Viktor Orbán, the Prime Minister of Hungary, on Wednesday, while meeting with Ali Tayyebnia, Iranian Finance and Economic Affairs Minister, on Wednesday in Budapest.

The Hungarian premier stressed on bilateral ties between Tehran and Budapest, especially in areas of economy and Energy. He also called for expansion of joint economic cooperation between the two countries.

which we scanned all parcels thoroughly,” said a Customs ofVicial.

The drugs were concealed inside the boxes in small packets. “OfVicers had been receiving inputs about fraudsters trying to export narcotics and psychotropic substances through FPO. Accordingly, we remained vigilant for weeks and on basis of suspicion detected the said consignment. Further investigation is in progress and the drugs have been sent for testing,” said commissioner (Customs) S R Baruah. Preliminary reports suspect the drug to be ketamine a date rape-drug.

“This may have been part of a larger racket. We are keeping an eye on parcels at the Foreign Post OfVice,” said a senior ofVicer.

Customs department at the Foreign Post OfVice in Delhi seized 1,810 grams of narcotics, concealed in 20 separate DVD writers bound for Australia. OfVicials suspect the drugs to be party drugs with valuation worth crores in the international market.

Both sides in this meeting underlined the importance of banking relations between the two countries and the removal of barriers ahead of expansion of economic ties. Allocating banking lines of credit was believed by both ofVicials to contribute to strong economic activities, Vlexibility in importing and exporting goods, and increase in the volume of trade between the two countries. During

$69.616 billion from $83.955 billion in 2016 (by 17%), TASS reports. In addition, the Federal Customs Service said that last year, Gazprom increased its gas exports by 6.5% to 198.7 billion cubic meters. The volume of natural gas exports to the non-CIS countries amounted to 164.7 billion cubic meters in 2016, to the CIS – 34 billion cubic meters. A leading analyst of the National Energy Security Fund, a lecturer at the Financial University under the Government of the Russian Federation, Igor Yushkov, speaking to Vestnik Kavkaza, noted that, despite such a signiVicant loss of revenue, Russia’s budget for 2017. –CB Report

the meeting which was also attended

by Péter Szijjártó, Hungarian Minister of Foreign Affairs and Trade, both the Iranian and Hungarian sides voiced their satisfaction with successful run of the joint economic commission of the two countries and the MoUs signed afterward. The two sides called for more efforts to put into practice the agreements signed between the two countries.

13

www.customsbulletin.com

US 2017 coking coal export growth hinges on H2 volumes WASHINGTON: The US market is expecting coking coal export volumes may grow in 2017 to recover from a recent contraction, but the jury is still out on any return to the “good old days” of 2011-2012. The exports a source of increasing debate and interest helping determine overall global balance of supply and pricing for mainstay US exporters.

Ahead of December US government trade data out this month, November 2016’s strong export volume for met coal is expected to be a precursor for a rise in volumes in a reaction to stronger global prices in Q4 2016, sources said at an industry event in Miami.

cat revenues shrink 30percent in two years aterpillar saw its global revenues nosedive 18% in 2016 and it made a loss for the year of $67m. Sales and revenues for the year were $38.5bn, compared to $47.0bn in 2015 and $55.2bn in 2014 – a fall of more than 30% in just two years. Caterpillar’s revenues peaked in 2012 at $65.9bn but have been falling since. In 2016 the company lost $0.11 per share, compared with a profit of $4.18 per share in 2015. For the past several years, Caterpillar has incurred substantial restructuring costs. During 2016 it incurred $1.019 bn of restructuring costs. And it expects to incur a further $500m of restructuring costs in 2017 as the process continues, not including planned closures at the Gosselies facility in Belgium and the factory in Aurora, Illinois, both of which are still under discussion. “We continue to execute in a challenging economic environment and are focused on improving operating margins, profitability and shareholder returns. –CB Report

C

uk television exports top £1.3 billion t has been an impressive year for UK television exports, according to the latest UK Television Exports Report, with sales to international markets in 2015/16 rising to £1.326 billion (€1.544bn), a 10 per cent increase from £1.205 billion in 2014/15. The report also shows a sizeable increase in activity in the Chinese market, which is up 40 per cent on 2014/15. A co-production treaty between the UK and China signed in December 2016 means that this figure could be set to rise even more in years to come. The USA remains the UK’s largest export market, and sales increased by 16 per cent in 2015/16 to £497 million. Australia is the second largest market, with sales of £106 million. Exports of finished television programming remained the largest source of revenue at £668 million, in line with 2014/15. –CB Report

I

World Customs

Three jailed in germany for huge beer smuggling

BERLIN

cuSToMS BuLLeTin reporT www.customsbulletin.com

F

or over a year, three men snuck beer into Britain while pretending to sell it in northern Bavaria. The problem? Nowhere on earth has as many breweries as northern Bavaria.

A court in Hof, Bavaria on Wednesday condemned the men to jail sentences ranging between two years, and three years and three months, broadcaster Bayerische Rundfunk reports. The smugglers’ ruse was simple. In Britain tax on beer is 13 times as

high as it is in Germany, so if they could pay German tax while selling the beer in Britain they stood to make a lot of money.

To do this they had around 80 trucks arrive at their shipping company headquarters in Bavaria each week, all loaded with foreign beer.

On the company books these beverages went down as imports from France and a German tax rate was paid accordingly.

In truth though the lorries were simply circulating the same bottles of beer between the shipping company and a storage facility 80 kilometres down the road. At the same time, they were buying beer in France, but the destination was not Germany, but the UK. Once

they smuggled it, into Britain they sold it off on the black market for a tidy profit.

But German customs became suspicious in 2014 as they simply couldn’t comprehend how 80 truck loads of foreign beer were being sold each week in northern Bavaria – as the judge pointed out during her ruling, there is no other place on earth that has such a concentration of breweries. In December last year, the authorities Vinally moved in, raiding the shipping company. All three men have sat in jail ever since.

Through this deceit, the smugglers were able to avoid €23 million in tax, the court found. The men had acted with “a high level of criminal energy,” the judge said.

Vietnam faces strange steel shortage

T HANOI

cuSToMS BuLLeTin reporT www.customsbulletin.com

hough Vietnam possesses huge amounts of iron ore, there is a serious shortage of steel for the mechanical engineering industry and defense industry, said Truong Thanh Hoai, Director of the Heavy Industry Department under the Ministry of Industry and Trade.

This is the paradox of Vietnam’s steel production, causing a trade deVicit and affecting the stability of

the macro economy.

Vietnam’s steel industry has great potential but the industry’s development is not synchronised.

For example, hot rolled coil (HRC) and alloy steel cannot be produced domestically, therefore, Vietnam still has to import a large quantity of these raw materials and semi-Vinished products, he said.

“The country’s ship-building industry is depending entirely on imported steel,” Hoai said, adding that Vietnam has spent billions of dollars to import steel annually, re-

Vlecting the huge domestic demand of a developing country requiring infrastructure and undergoing rapid urbanisation. By 2020, Vietnam will face a shortage of about 15 million tonnes of crude steel and up to 20 million tonnes by 2025, Hoai said, adding that the country must develop steel complex projects to produce all kinds of steel to serve the country’s mechanical industry.

According to the Vietnam Steel Association (VSA), steel imports in 2016 surpassed the country’s total steel production, reaching 17.5 mil-

Saturday February 11, 2017

Australia post ceo paid $5.6 million in 2016 USTRALIA Post’s chief executive was paid a total of $5.6 million in 2016, 10 times the salary of Prime Minister Malcolm Turnbull, it has been revealed. Ahmed Fahour’s salary of $4.4 million and bonus of $1.2 million were revealed by Liberal Senator James Paterson, who released documents provided by Australia Post in response to questions from a Senate committee. Another five executives earned between $1.8 million and $1.3 million. Mr Turnbull told reporters on Wednesday that Mr Fahour’s remuneration package was “too high” and that he had spoken to the Australia Post board chair. “This is not a decision of the government,” Mr Turnbull said. “I’ve spoken to the chairman today. I think that salary, that remuneration is too high. Now, it’s a matter for the board. I think it is too high. I know it is a big job. It is a big company. The company has been able to improve its position. “But in my view and I say this as someone who spent most of his life in the business world before I came into politics I think that is a very big salary for that job.” Australia Post chairman John Stanhope claimed there was “no intention to try and hide anything”. “We’ve reported it every year as required. It did change in 2015 when the requirement was to do it by individual,” Mr Stanhope told The Australian. –CB Report

A

lion tonnes, up 16.8 percent yearon-year, of which the amount of consumption reached 15.3 million tonnes, up 23.7 percent compared to 2015. VSA vice chairman Nguyen Van Sua warned that Vietnam risks being Vlooded by imported steel products, adding that strong rises in imports are hindering the growth of domestic producers. According to the General Department of Customs’ statistics, Vietnam spent 11 billion USD importing over 22 million tonnes of steel and iron products in 2016.

14

www.customsbulletin.com

FIA arrests two for selling spurious and expired medicines Saturday February 11, 2017

Lahore

LAHORE: The Federal Investigation Agency has arrested two accused and recovered spurious and expired medicines from three medical stores near Services Hospital.

According to FIA officials, a team of FIA led by Inspector Mian Anwar along with Drug Regulatory Authority of Pakistan (DRAP) officials raided the Services Hospital area and inspected three medical stores named Farhan Medical Store, Shaheen Pharmacy and Saghir Medical Store.

The FIA took into possession all the expired and spurious medicines besides a large quantity of drugs which were property of Services Hospital. The raiding team arrested Tariq Mahmood and Muhammad Asif Sharif on the spot.

customs court adjourns hearing of smuggling cell-phones worthrs05m LAHORE

M iMrAn MeHAr

www.customsbulletin.com

T

he Special Federal Court of the Customs Taxation and Anti-Smuggling Organization has adjourned the hearing of mobile-phone smuggling case.

Earlier, the court had approved of extension in judicial remand of an accused who was arrested by the customs authorities from the Allama Iqbal International Airport while making an attempt to smuggle cellphones from China to Lahore.

The investigation and prosecution team of Customs Lahore had presented accused Naveed Bhatti before the special court and asked for physical remand of Vive days to investigate him and other persons involved in his attempt of smug-

Anf nabs 6 smugglers, recovers 12kg hashish he Anti Narcotics Force recovered 12 kilogram hashish and one kilogram opium and arrested 6 accused, including a women, in three different operations. According to details, the ANF team was on its routine checkup when they intercepted a Toyota Corolla car near Mian Plaza, Johar Town and recovered 4 kilogram hashish from the car. The team arrested three drug smugglers who were identified as Rana Falak Sher and Muhammad Javed residents of Gujranwala and Atta Ullah Khan a resident of Peshawar. In another operation, ANF arrested Muhammad Faisal and Naseem Bibi resident of Lahore while trying to smuggle seven kilogram hashish near G1 Market, Johar Town. Meanwhile, in third operation, the ANF team arrested a drug peddler from Mankera, Bhakkar who was identified as Saleem Khan a resident of Bhakkar and recovered one kilogram hashish and one kilogram opium from his possession. –M Imran Mehar

T

gling. After the completion of physical remand, the court sent him to jail for judicial trial which is further extendable for 14 days.

As per sources of Customs Today, Naveed Bhatti was arrested by the Customs Preventive when they seized 170 android mobile phones from his luggage at Lahore airport.

As per sources, the customs authorities intercepted accused Naveed Bhatti while he was using green channel and was asked if he had anything illegal.

The mobile phones were hidden in the bottles of water which the passenger claimed he brought from Saudi Arabia, it was added. The sources said the total value of the mobile phones has been estimated Rs05million.

The customs authorities, conViscating the mobiles, have registered a case against him. Further investigation is underway.

customs central region collects rs75.056b duty, taxes

LAHORE

M HAYAT

www.customsbulletin.com

C

ustoms Central Region has collected Rs75.056 billion all duty and taxes during (July-

January) of current Vinancial year 2016-17. AS per details, Customs Appraisement collected Rs35691 million during the Virst seven months of the Vinancial year 201617 against the collection of Rs38816 million during the same period of last Vinancial year.

Similarly, the Collectorte of Preven-

T

tive Lahore collected Rs16654 million during the period under review against Rs17725 million collected during the same period of last Vinancial of 201516. On the other hand, the Collectorate of Customs Multan collected Rs 16456 million during the period under review against Rs28541 million collected in the same period last Vinancial year.

Correspondingly, the Collectorate of Faisalabad collected Rs6245 million during the seven months of Vinancial year 2016-17 against Rs 4851 million during the same period during the same period Vinancial year 2015-16.

Overall the Collectorate collected Rs75056 million during the period under review. Source told Customs Today that Chief Collector of Customs Central Region Samaira Nazir has directed all the collectors under the Central Region limits to speed up collection of the duty and taxes to achieve the Vinancial year’s targets besides lower staff have also been ordered to put their maximum efforts for the revenue collections.

customs court extends judicial remand LHc seeks reply from fBr he Lahore High Court issued a and mala fide. He pleaded that the of accused involved in smuggling notice to the chairman FBR on chairman FBR is accused of con-

T

he Special Court of Customs Taxation and Anti Smuggling has extended the judicial remand of an accused who was arrested from Sialkot International Airport.

According to details available to Customs Today an accused who was later identified as Muhammad Sarwar was arrived from South Africa to sialkot and was intercepted by the customs officials at Sialkot airport. Customs team during search of the luggage found 30

costly mobile phones hidden in baggage of Muhammad Sarwar.

Customs team arrested the accused and presented him before Customs Court for physical remand but customs judge denied the request of customs investigation team for physical remand and send him to jail for judicial trial.

It is necessary to mention here that Muhammad Sarwar also filed a petition for his post arrest bail and the same was rejected by the Court. –M Imran Mehar

a petition of contempt of court and ordered to Vile the answer within two weeks.

Reportedly, Justice Shahid Wahid heard the case Viled by Inland Revenue OfVicer Naeem Babar. The petitioner prayed that he had Viled a petition for his promotion on which the LHC decided the case in his favor. But instead of following the court’s judgment, the chairman FBR promoted junior ofVicers and did not promoted him.

The petitioner said that the act of the chairman FBR is impugned

tempt of court and must be held answerable for it.

Meanwhile, The Lahore High Court (LHC) has suspended the 2015-Audit Policy introduced by the Federal Board of Revenue (FBR).

The court also ordered the Federal Board of Revenue (FBR) to set new principals for the selection of taxpayers’ cases for audit. According to details, Justice Shahid Jameel Khan heard the case and issued the detailed judgment of 46 pages on the applications Viled by about 829 taxpayers in the LHC. –Sajid Nawaz

pcA detects tax evasion of rs 2,043,106 by grT Trading

D LAHORE

M HAYAT

www.customsbulletin.com

irectorate of Post Clarence Audit (PCA) has summoned M/s GRT Trading Company in duty and tax evasion of Rs2,043,106 on the import of tarpaulin.

According to the details, PCA Lahore observed that the import clear-

ances data against HS Code 6306.1210 effected from various Model Customs Collectorate during the calendar years. 2012 and 2013 revealed that inadmissible concession of Sales Tax and Value Added Sales Tax under the SRO 1125()/2011 dated 31.12.2011, wrongfully availed on the import of Tarpaulin i.e. sun shedding which is speciVically excluded from that ambit

of said SRO and hence was not entitled for such beneVit under the said SRO. It has been observed that importer had imported various consignments consisting of tarpaulin and got it cleared under PCT heading 6306.1210 with inadmissible concession under SRO 1125(I/201 1, dated 31.12.2011. Hence, it was said that the importers have short paid an amount Rs 2,043,106 sales tax, addi-

tional sales tax and income tax due to wrongful, concession under the SRO I 125(D/2011 dated 31.12.2011. The importer was asked to pay above mentioned short paid amount of duty/ taxes within 10 days of receipt of this letter positively. The importer was told in case they do not agree with the audit observation; they may provide the written clariVication along with supporting documents.

15

www.customsbulletin.com

Four ships take berth at Port Qasim KARACHI: Four ships Maerk Savannah, Al-Rakayyat, Bahara and Wlady Slaw Orkan carrying containers, LNG, diesel oil and project cargo were arranged berthing at Qasim International Container Terminal, Engro Elengy Terminal, FOTCO Oil Terminal and Multi Purpose Terminal respectively on Wednesday. Meanwhile four more ships with Containers, LPG, Phosphoric Acid and Furnace oil also arrived at outer anchorage of Port Qasim (PQ) during last 24 hours.

Berth occupancy was maintained at the port at 53% on Wednesday where a total of eight ships namely Maersk Savannah, MSC Albany, Teo, Wlady slaw Orkan, Thalassini, White Purl, Al-Rekayyat and Bahara are currently occupying berths to load/offload Containers, General Cargo, Slag, Canola Seeds, LPG and Furnace oil respectively during last 24 hours.

Southeastern ports adjust to expanded panama canal he Southeast’s top seaports and their surrounding industrial real estate markets have braced themselves for years for the larger post-Panamax vessels that can now pass through the newly expanded Panama Canal. The 102-year-old canal opened in late June 2016 following its $5.4 billion expansion, creating a shortcut for the larger ocean carriers coming from Asia.

The opening of Panama Canal’s expansion was delayed by two years, missing the 100-year anniversary of its 1914 debut. Shipping companies had their larger vessels in place, though, and decided to ship those vessels to the East Coast via the Suez Canal, according to Walter Kemmsies, managing director, economist and chief strategist of JLL’s U.S. Ports, Airports and Global Infrastructure Group.

T

Ports & Shipping

Saturday February 11, 2017

cg directs 100% of cargoes examination at ports

port of Alabama signs agreement with cuba that florida ports can’t

WASHINGTON

he seaport in Mobile and Cuba’s National Port Authority pledged to find ways to expand the business they do with each other the kind of deal that three ports in Florida had worked toward until Gov. Rick Scott last week scuttled them with a threat to pull their funding. Alabama State Port Authority CEO James Lyons said the timing was coincidental. The memorandum of understanding had been planned for at least three months. Tampa was convenient since both parties would be here. The occasion Thursday was an international conference called “Planning for Shifting Trade,” sponsored by the American Association of Port Authorities at the Tampa Marriott Waterside Hotel & Marina. Some U.S. exports to Cuba such as agricultural products and food already are allowed as exceptions to the trade embargo imposed more than 50 years ago after the late Cuban dictator Fidel Castro embraced communism. –CB Report

T

cuSToMS BuLLeTin reporT www.customsbulletin.com

C

omptroller General of Customs, Col Hameed Ali (rted), has ordered ofVicers of the Service to embarked actual 100 percent cargo examination to ensure that no offensive consignment gets out from the port. The Customs boss who gave the ordered in Lagos, said that actual 100 percent examination should been done on all imported goods even though it will affect 48 hours cargo clearance at the port.

According to him, “We have instructed our ofVicers that no matter what, even if it is only three containers they can examine in a day, they must make sure that any container that gets out of the port is properly screened. Ali said due to the poor conditions of the scanners, Customs ofVicers have resorted to physical examination of goods but admitted that this has made 48 hours cargo clearance of goods impossible as it does not help in facilitating trade. Customs CG, Hameed Ali He said that they

have problem with the scanners because most of them are not working.

He noted that after examining the scammers only two can be immediately repaired and put to use but the others will be repaired also. “With the ones we have now, we have done scrutiny on them and two of them can be repaired and put back but we need to replace most of them. “We have problems with the scanners because most of them are not working.

We are working diligently to replace them.By God’s grace by the end of

this Virst quarter, we will have scanners at our ports. “Paucity of fund has been part of our problem but we are working diligently to ensure that we get scanners into the ports and the borders. We are working on that,” he said. “Customs has pride itself on clearance of goods under 48 hours in the past but because of the unavailability of scanners, we have now propelled our ofVicers to ensure proper examination although it is not going to facilitate trade as we want it but for security of this country.

port of Seattle ceo Ted fick resigns “As the Panama Canal gets through the learning curve, we’re seeing the number of weekly transits increase, and we’re still in that phase and perhaps will be for the next six months,” says Kemmsies, who is currently engaged with three of the top five seaports in the United States on their master plans. “The ocean carriers are starting to scrap their smaller vessels and moving their services back from the Suez Canal to go through the Panama Canal. Right now the East Coast has done quite well and had a pick up in volumes.”The Port of Savannah and Port of Virginia in Norfolk both enjoyed record shipping volumes in October. The Port of Savannah moved 251,566 TEUs (20-foot equivalent units) in October, setting an all-time record for activity for the month. –CB Report

P

SEATTLE

cuSToMS BuLLeTin reporT www.customsbulletin.com

ort of Seattle Commissioners accepted the resignation of CEO Ted Fick Thursday. “We accept the resignation of Ted Fick, and acknowledge his desire to return to the private sector,” said Commission President Tom Albro in a released statement. “We are currently working through the details of his departure and will defer further comment until those details are resolved.” Albro shed little light on the sudden resignation. Chief Operating Officer Dave Soike will serve as interim CEO. The port announced last week that Fick was on paid leave to address a “personnel issue.” Fick had a contract which ran through September of 2017, so the action brings an abrupt end to his tenure.

The Tacoma native worked a

family-owned foundry, and Paccar, and Polar Corp. He was brought on during a tumultuous time for maritime operations and oversaw the merger with the Port of Tacoma to create the Northwest SeaPort Alliance. His initial salary was $350,000 a year. Fick replaced Tay Yoshitani, who had been criticized by commissioners and the public, for his role on the board of Expeditors International, which handles cargo logistics and a potential conVlict of interest.

Fick was considered a breath of fresh air. At the time of his hire in 2014, Port of Seattle Commissioner Courtney Gregoire hailed Fick as someone with proven success. She told the Tacoma News Tribune, he was successful in “guiding large organizations through changing competitive landscapes, expertise in manufacturing and logistics, understanding the pressures on those

companies, how to support them, how to grow them, how to help them export around the globe and how that supports family-wage jobs right here at home.” However, Fick was unable to avoid public errors. He was charged with a DUI in 2016 after attempting to drive home on State Route 520. Court documents indicate he had a blood alcohol content of .097, which is above the legal limit of .08. He has a court date in February.

Fick’s comments about the possible sale of Terminal 46 in 2016 to Seattle Business Magazine caused some consternation in labor circles and emails later showed he had been exploring the possible redevelopment of T-46, near Safeco Field. It was unneeded noise, for some, as the Port attempts to adjust to the changing world dynamics, and Vight off competition from places like Prince Rupert, BC. The

port has nearly 2,000 employees, ranging from Sea-Tac Airport to the waterfront, cruise ships, marinas, and real estate.

Meanwhile, With the aim of attracting Emirati talent aspiring to lead the dynamic operations of ports and industrial zones, Abu Dhabi Ports, is participating at Tawdheef 2017 which is being held between 30 January and 1 February at Abu Dhabi National Exhibition Centre (ADNEC). As part of its participation at Tawdheef, Abu Dhabi Ports will unveil tens of new job opportunities that are available for Emiratis within its operational and managerial departments in order to elevate the role of Emirati talent in managing and operating its ports. The company will also present its training and development programmes that target the Nation’s ambitious youth.

16

www.customsbulletin.com

DG Valuation revises customs values of raw plain decorative paper KARACHI: The Directorate General of Customs Valuation has revised the customs values of raw plain decorative paper ruler through Valuation Ruling No: 1025/2017 under Section-25A of the Customs Act, 1969.

According to details, The Customs values of raw plain decorative paper were circulated vide VDB letter No.111 on December 2, 2016. Certain importers have requested the directorate to convert the same in a valuation ruling. An exercise was conducted to determine customs values of raw plain decorative paper in line with current price trend in the international market.

Saturday, February 11, 2017

CUSTOMS BULLETIN

Dg Valuation issues reference values of gentamycin injection, pVc toilet seat cover KARACHI wAQAr AHMeD AnSAri www.customsbulletin.com

T

he Directorate General of Customs Valuation has issued the reference values of Gentamycin Injection and PVC toilet seat cover.

According to details, the Directorate General initiated an exercise to develop database values for different items wherein it has been observed that declarations are of wide range and do not correctly reVlect values of the items as traded in the international market.

During the scrutiny, it was observed that Gentamycin Injection 80MG 2ML falling under PCT headings 3004.2000 are being assessed at different values and certain transactions are on very low side.

The Directorate General, after carefully examining the clearance data, also conducted market inquiries to verify the authenticity of declarations. Online prices were also obtained to corroborate the Vindings of the market surveys. This ofVice, therefore, has found that the customs values of Gentamycin Injection 80MG 2 ML are Gentamycin Injection 80MG 2ML China origin $5.25 per kilogram.

Meanwhile, the Directorate General issued Valuation of the PVC toilet seat cover. The Directorate General initiated an exercise to develop

database values for different items wherein it has been observed that declarations are of wide range and do not correctly reVlect values of the

items as traded in the international market. During the scrutiny of previous clearance data, it was been observed that PVC toilet seat cover

falling under PCT headings 3922.2000 are being assessed at different values and certain transactions are on very low side.

energy crisis main reason behind decline in surgical exports SIALKOT

cuSToMS BuLLeTin reporT www.customsbulletin.com

T

he prolonged persisting energy crisis was stated to be the main reason behind the decline in surgical exports from Sialkot-Pakistan and further investment in surgical industry by the local exporters and investors, due to which more than a century old surgical industry of Sialkot now has been passing through its

very hard time as well.

According to the Sialkot based surgical instruments manufacturers and exporters, there were more than 3600 small and big sized surgical instruments manufactures and forging units, out of which more than 2200 units (scattered in and around the Sialkot city) have been badly affected by the power and suigas outages, due to which the new investment in Sialkot’s surgical industry has stopped and the exporters and investors were reluctant to do more investment in this industry here.

As these 2200 small sized sur-

gical manufacturing and forging units have been lying closed for the last six months, as they were battling for their survival in such unavoidable circumstances. Later, these unavoidable circumstances had beaten them badly and as a result of which they were forced to close these units to avert for Vinancial crisis.

The affected small manufacturers said that the lacked government patronage was also another main cause behind the closure of these 2200 small surgical instruments manufacturing and forging units in and around

the Sialkot city here.

There was also a visible decline in exports of surgical instruments in Sialkot from US$ 369 million to US$ 358 million.

The perturbed surgical exporters including Fazal Jillani, Jalil Bajwa, Sheikh Waqar , Bilal Ameen, Qaiser Baig and Ch. Muhammad Ikram were of the view that the surgical industry and its manufacturers, venders and exporters were in dire need of India and China like government patronage for their surgical sectors. They urged the Pakistan government to ensure the maximum trade, export

Published by M S Raza Off# 42, 3rd Flr Gull Plaza M.A Road Karachi, Printed by Dhoom Printing Building No RY/A, 11/6,11/7, Mashoor Mahal,off I.I. Chundrigar Road, Karachi

and research and development patronage for the surgical industry.

They said that surgical industry was more than a century old and was also in dire need of advanced manufacturing technology, besides; exploring the new international trade markets through the diversiVication of their traditional t nontraditional export products.

They also urged the surgical exporters to end their internal price war and focus on diversification of their traditional to nontraditional export products in a bid tap the untapped international trade markets ahead.