Feb 23 layout 1

Daily on www.customsbulletin.com

Find us on

pAkIStAN’S fIrSt INDEptH NEwSpApEr oN cUStoMS

Daily

ABC Certified

Karachi, Thu February 23, 2017

KARACHI

MUBEEN HUSSAIN

www.customsbulletin.com

T

he Pakistan Customs has recovered huge quantity of heroin from the possession of a passenger after a raid executed on a bus at Mochko.

In a drive launched against the men-

ace of narcotics transportation/smuggling, the staff of the Anti-Smuggling Organization (ASO), Model Customs Collectorate of Preventive, posted at Custom-point as RCD Highway, seized 11 kg of contraband narcotics (heroin) valued Rs 110 million in the international market. The action was taken after a tip-off received.

The said heroin was recovered from a passenger named Muhammad Naeem S/o Abdurehman travelling in a

passenger bus Al-Yousaf Coach with registration No.BSB-353 en-route from Quetta to Karachi.

The contraband item was recovered from 11 polyethylene bags, each containing one kilogram heroin, from the luggage of the said passenger.

Accused Muhammad Naeem, Driver Muhammad Usman and Conductor Salal Ahmed have been arrested and one more absconding accused was also identiTied during investigation.

Vol 2, Issue No. 88

Price Rs. 14.00

It was informed that some passengers, carrying contraband heroin, would get on the bus running from Quetta to Karachi. It was further informed that the accused passengers would get off the bus prior to custom-point and use other transport to enter Karachi. Efforts are on to arrest other members of the group involved in the sinister offence. An FIR No: ASO-21/2017 has been lodged in the court of law.

Peshawar Customs foils attempts to smuggle urea, narcotics from Pakistan

Senate Commerce Committee recommends 35pc import duty on fruits

Sales tax refund claims mount to Rs110b in July-Jan

Customs I&I detects mega duty tax evasion on poultry medicines

Multan Customs collects Rs4.32b customs duty till 15th Feb of FY2016-17

ThecustomoďŹƒcialsfoiledabidtosmuggle 300 bags of fertilizer loaded on trucks | SEE pAgE 02 |

DC Customs Asma Hameed declares seizure of mobile phones as legal | SEE pAgE 03 |

STrefundsclaimsfrombusinessesmounted to Rs110 b during the first seven months | SEE pAgE 04 |

Customs I&I has unearthed a mega scam of import of poultry medicines | SEE pAgE 14 |

The Model of Customs Collectorate Multan collected Rs4.32 billion customs duty | SEE pAgE 16 |

2

www.customsbulletin.com

Customs Court grants interim bail to suspect involved in tax evasion Thursday, February 23, 2017

National

KARACHI: Customs Taxation and Anti-Smuggling Court Judge Syed Faiz Rasool Rashdi has granted interim pre-arrest bail to Muhammad Waseem, allegedly involved in duty and taxes evasion of Rs 9.34 million, and adjourned the hearing for the first week of March 2017.

During the hearing, the suspect appeared before the court along with his counsel and filed an application for pre-arrest bail. The counsel for the suspect argued that his client is innocent and has falsely been implicated in this case, and that he is also ready to face trail. Therefore, he said, the court may grant him bail till final disposal of this case.

peshawar customs foils attempt to smuggle urea, narcotics

FAISALABAD

PESHAWAR

NAEEM SHEIkH

NADIr kHAN

www.customsbulletin.com

www.customsbulletin.com

he Customs Anti Smuggling Organisation (ASO) has foiled a smuggling attempt and confiscated non-duty paid ceramic tiles worth Rs1.5 millions involving duty and taxes of Rs1,77,187 and impounded the offending Mazda truck worth Rs1 million. Additional Collector Muhammad Saeed Asad received credible information regarding transportation of smuggled items. He immediately formed a special team comprising Superintendent Chaudhary Sardar Muhammad, Inspector Bashir Hussain, Bashir Ahmed, Sepoys Muhammad Mansha, Hafiz Naseer Ahmed, Muhammad Imran and Muhammad Iqbal to foil the smuggling attempt. The ASO team started checking vehicles near Bhalwal Road district Sargodha. During checking the ASO team intercepted a Mazda mini truck loaded with foreign origin ceramic tiles. The team asked the driver to show the legal documents regarding possession and transportation of the ceramic tiles. The driver, who was later identified as Falik Shair son of Muhammad Shair resident of Multan, remained failed to provide any required document.

T

T

he custom ofTicials foiled a bid to smuggle 300 bags of fertilizer loaded on trucks to Afghanistan and arrested two smugglers. According to the details, the custom ofTicials found 300 bags of urea (50kg each bag) being illegally carried by two trucks at Torkham border in Khyber Agency. Two smugglers were arrested during the action. The custom ofTicials conTiscated the fertilizer and started the investigations after arresting two suspects. Talking to Customs Today, sources said that the fertilizer and the vehicle were shifted to Custom House Peshawar.

Meanwhile, Anti-Narcotics Force (ANF) arrested two suspects and recovered 1,410 gram heroin and hashish from their possession on Tuesday. OfTicials said that in the Tirst crackdown at Peshawar Airport, the ANF arrested a passenger identiTied as Iftikhar Khan who confessed to swallowing 92 heroin Tilled capsules containing 500 gram heroin each.

During the search of his luggage, the ANF also found 410 gram Amphetamine concealed in his hand bag. He was boarding for UAE by Air Arabia Flight No. G9-825.

In another operation, the force arrested Mir Gul, a resident of Khyber Agency, while he was travelling in a

Sargodha ASo seizes non duty paid ceramic tiles worth rs1.5m

passenger van near Motorway Toll Plaza, Peshawar and recovered 500 gram hashish from his possession. It is to mention here that it was the second incident the ANF recovered heroin from the possession of the smugglers.

Earlier to this, a similar case was reported at Bacha Khan International Airport in the Tlight of the same airline. Meanwhile, The Model Customs Collectorate (MCC) Peshawar collected

Rs555.86 million customs duty during the month of January FY2016-17. The revenue was collected from different stations of MCC Peshawar like Kohat, Khapakh, International Mail OfTice (IMO), Assessment Cell, State Warehouse, Auction Cell, Treasury Branch, Torkham, Hazara, Gadoon, Bacha Khan International Airport, Bounded Ware House (BWH) and Dry Port Peshawar.

According to details told by sources of

the MCC Peshawar that during above said period, the MCC Peshawar Dry Port generated Rs232.67million CD whereas the BWH earned Rs94.82million CD during January FY16-17. The sources said that during said period, the BKI airport received Rs4.18million CD while the Gadoon Customs Station got Rs0.01million and the Customs Station Hazara collected Rs22.47million CD.

govt releases rs428.578b under pSDp T

ISLAMABAD

cUStoMS BULLEtIN rEport www.customsbulletin.com

he federal government has released over Rs428.578 billion for different social sector developmental projects under Public Sector Development Programme (PSDP) 2016-17 as against the total allocations of Rs 800 billion.

The data released by ministry of Planning revealed that the government released Rs 17.251 billion till

February 17 for Pakistan Atomic Energy Commission (PAEC) against its total allocations of Rs. 27.690 billion. The government also released Rs 111.4124 billion for infrastructure and development projects under National Highway Authority (NHA) against its total allocation of Rs 188 billion for FY 2016-17.

In addition, Rs 94.7 billion have been released for Water and Power Development Authority (Power Sector) and other power sector projects as against the total allocation of

Rs 130 billion for current Tiscal year to overcome the shortage of energy in the country. Meanwhile, a sum of Rs 9.063 billion has been released for Water and Power Division (Water sector) projects for building the mega water reservoirs as compared to total allocations of Rs 31.716 billion in federal PSDP 2016-17.

About Rs 8.5487 billion have been released for Higher Education Commission as compared to its total allocation of Rs 21.486 billion for the year 2016-17. Similarly an amount of Rs

4.203 billion has been provided to Housing and Works Division against the allocations of Rs 7.687 billion while an amount of Rs 2.4439 billion has been released for Finance Division out of total Rs 9.4337 billion. According to the data, the government released Rs 9.43 billion for Interior Division against its total allocations of Rs 11.568 billion while an amount of Rs 9.7596 billion has been released for National Health Services, Regulations and Coordination Division out of its total allocations of Rs 24.951

billion. The government has released Rs 51.403 billion for Special Federal Development Programme for Temporary Displaced Persons (TDPs) and Security Enhancement under current year’s development programme for the rehabilitations of TDPs. The government also released Rs 12.5838 billion for Azad Jammu and Kashmir (Block and other projects), Rs 4.74 billion for Gilgit-Baltistan (Block and Other Projects) and Rs 15.1458 billion for SAFRON/FATA (Block and Other projects).

3

www.customsbulletin.com

Sialkot Customs reshuffles eights inspectors SIALKOT: Deputy Collector of Model Customs Collectorate (MCC) Sialkot Muhammad Hanif has assigned additional duties to eight inspectors with immediate effect.

According to details, Inspector Ali Hassan has been assigned the duty of Anti-Smuggling Organization’s additional charge of export and attachment Inspector of recovery while Inspector Asad Ullah assigned the duty to the Sialkot International Airport Limited (SIAL).

Inspector Arshad Maqbool has been transferred to Anti-Smuggling Organization’s Recovery and Imports. Inspector Amjad Mayo has been assigned the duty to Export and Import Department.

Thursday February 23, 2017

National

Asst collector Asfand reviews output of rebate refund officials

Senate commerce committee suggests 35pc import duty on fruits

SIALKOT

SALEEM AwAN SHEIkHU www.customsbulletin.com

ssistant Collector of Model Customs Collectorate (MCC) Sialkot Asfand Yaar Khan visited the Rebate Refund Department at camp office Sialkot and reviewed the performance of the officials on the other day. Asfand Yaar told Customs Today that the department receives 50 to 70 claims of rebate refund in a week by the exporters. He said the Sialkot Customs is receiving the claims of rebate refund at its camp office to facilitate the exporters of the region. The refund claims on exports are filed by exporters when their consignments reached the destinations through Sialkot Dry Port Trust (SDPT) and Sialkot International Airport Limited (SIAL), he informed.

A

Hundred tola gold & currency seized from lady smuggler MULTAN

IMrAN ALI

www.customsbulletin.com

he Customs Intelligence and Investigation Multan seized 100 tola of gold and $20,000 currency notes from a lady passenger at the Multan International Airport. According to details, Customs Intelligence and Investigation’s Anti-Money Laundering Unit has received a tip-off from an informer that smuggling attempt of gold and currency notes could be possible from Multan International Airport. Deputy Director Customs Intelligence Abdul Mueed Kanjoo deployed a special staff to thwart the smuggling. The customs staff thoroughly examined the baggage of all the passengers. The Customs Intelligence and Investigation Multan Range Office found 100 tola gold and US dollar currency notes in the luggage of a lady passenger at scanning who was travelling to Dubai.

T

ISLAMABAD

M ArSHAD

www.customsbulletin.com

T

he Senate Standing Committee on Commerce has recommended that the Federal Board of Revenue (FBR) and Interior Ministry must ensure strict anti-smuggling measures at all border points of the country, especially the entry points at Taftan and Torkhum.

Minister for Ports and Shipping Mir Hasil Bazinjo had raised an issue in the Senate that different rates of import duty on the vegetables and fruits from Iran and Afghanistan were badly affecting the farmers and fruit growers in Balochistan.

The chairman Senate had referred the matter to the commerce committee for further deliberations and report back to the House. In a report recently compiled and laid before the Senate, the Committee recommended that the existing import duty differential on apples at various borders in Pakistan should be removed and a single import duty rate on the same be applied across Pakistan at the rate of 35 percent regardless of what order point it is imported from.

The committee recommended that Ministry of Commerce (MoC) should take quality certification mandatory for all goods being imported from Iran, especially apples to ensure that only non-hazardous

goods are imported, quality is maintained and the local farmers of Balochistan are protected against unfair competition.

The committee directed that quarantine conditions should be strictly followed.

The committee recommended that Ministry of Commerce (MoC) should adopt a trade reciprocation policy with Iran so that fruit, vegetables and grain from Pakistan are exported to Iran in exchange for

the committee recommended that existing import duty differential on apples at various borders in pakistan should be removed

SHc dismisses plea filed by M/s Diamond Metals

T

KARACHI

M BILAL

www.customsbulletin.com he Sindh High Court (SHC) has dismissed a constitutional petition as not pressed with pending applications Tiled by M/s Diamond Metals, seeking adjustment certiTicate under sub-rule (26) of rule 58 H of special procedure for payment of sales tax.

A two-member bench, comprising Justice Aqeel Ahmed Abbasi and Justice Muhammad Arshad Khan,

was hearing the petition.

During the hearing, Syed Irshadur Rahman advocate, counsel for the petitioner, appeared before the court and stated that, under instructions, does not press this petition as according to him the purpose of Tilling of the petition has been served and adjustment certiTicate has already been issued by the concerned commissioner in favor of the petitioner. After hearing, court passed order with observation that, “such position is not controversial

by the learned counsel for the respondent, accordingly, instant petition stands dismissed as not press along with the pending applications”. Earlier, counsel for the petitioner stated in its petition that petitioner is running a business of steel melting and re-rolling unit and engaged in the business of manufacturing of iron bars, angles and Tbars, he submitted that petitioner approached the tax authorities seeking adjustment certiTicate for payment of sales tax.

fruit and vegetables from Iran.

The committee examined different aspects of the issue like different duty rates at various entry points of the border timing of importing fruits and vegetables from Iran, issue of regular documented and smuggled inflow of these items. The committee discussed the deteriorating conditions of farmers in Balochistan especially due to scarcity of water and energy resources.

SBp files complaint with fIA over email scam he State Bank of Pakistan (SBP) has lodged a complaint with the authorities of Federal Investigation Agency (FIA) against unscrupulous elements over email scam created in the name of SBP’s governor, a statement said. The central bank said email scam from a fake email address created in the name of the SBP governor Ashraf Wathra was in circulation.

T

4

www.customsbulletin.com

Railway tracks to be upgraded countrywide under CPEC ISLAMABAD: The Ministry of Railways will upgrade its existing tracks besides installing new railway tracks from Gwadar-Quetta-Jacobabad via Besima Tehsil in Balochistan, under China-Pak-Economic Corridor (CPEC).

Under the project, a total 560 kilometres track from Bostan-Kotla Jam on the main line-II via Zhob and Dera Ismail Khan and another 682 kilometres track from Havelian to Khunjerab will be laid, a source in the Ministry of Railways said. The upgradation of 1,872 kilometres track from Karachi to Peshawar via Kotri, Multan, Lahore and Rawalpindi (including TaxilaHavelian) – along with dualization of the track from Shahdara to Peshawar.

Thursday February 23, 2017

Business

Sales tax refund claims mount to rs110b KARACHI

cUStoMS BULLEtIN rEport www.customsbulletin.com

S

ales tax refunds claims from businesses mounted to Rs110 billion during the Tirst seven months of the current Tiscal year of 2016/17 – almost equal to the last Tiscal year – despite zerorating facility for Tive export sectors.

Sales tax refunds of up to Rs22 billion were settled in August 2016, followed by another settlement of Rs21 billion for the period between June 1, 2015 and June 30, 2016 in November 2016.

“It has been three months now since the last payments against refund claims were made, whereas such

Mobile phones market expanding in pakistan ISLAMABAD

cUStoMS BULLEtIN rEport www.customsbulletin.com

obile phones market has been expanding ever further in Pakistan giving the economy a much needed boost. According to a private news channel report, the users flock to the markets to buy new mobile phones due to the ever-changing designs and features. Pakistan is considered one of the biggest cellular markets in the world. With mobile phones being imported worth around 750 million dollars every year, the nation is rightly called a cell phone crazy nation.

M

claims have been escalating every day, triggering anxiety among many taxpayers,” Shamim Firpo, president of the Karachi Chamber of Commerce and Industry said. “Small exporters

are facing severe liquidity crunch due to the stuck sales tax refunds.” Firpo said refund claims of the last seven months of the current Tiscal year have not been cleared. He advised the tax

authorities to devise an automated system to ensure release of pending refunds on monthly or quarterly basis, which would enable industrialists and exporters to efTiciently devise their future business expansion strategies.

The government allowed zero sales tax rate for Tive export sectors on the condition of ‘no payment – no refund’. A delegation of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) will hold a meeting with the chairman of the Federal Board of Revenue (FBR) next week to resolve the issue of refund claims and fake invoices. Shakil Dhingra, who heads FPCCI standing committee on FBR Affairs, said the FBR and business community will jointly remove the menace of Tlying or fake invoices to plug billions of rupees leakages in sales tax.

kinnow export targets may not be achieved: Ahmad Jawad A

ISLAMABAD

cUStoMS BULLEtIN rEport www.customsbulletin.com

hmad Jawad, a senior horticulturist and harvest trading director here on Tuesday apprehended decline in the country’s kinnow export target for the current year. “Kinnow export target was set at 3,50,000 tons for this year but due to sudden hail storms crop has been affected at quite a large level turning both the growers and exporters unable to meet the demand,” he said.

Ahmad Jawad warned that the situation could worsen if appropriate preemptive measures were not taken and suggested installation of anti-hail detection and radar system. Emphasizing importance of technology for local agro-based businesses, Jawad said updated technology in the country could be procured through public private partnership equity. “We can deTinitely save our products from hailstorm and other climate change induced threats, especially for our kinnow and mango crops,” said Ahmad also the former chairman of

FPCCI’s regional committee on horticulture exports.

Reminding that the whole world is being affected due to climate change, he said country’s agriculture sector was exposed to serious risks consequent to season related disturbance and decline in water levels. Ahmed Jawad said impacts linked to climate change have strong material and economic pertinence for Pakistan, estimated to cut billions of dollars from its total GDP by 2050. “I strongly believe Climate Change as one of biggest threat for our country,” he said.

govt assures allocation of rs390m to ptDc ISLAMABAD

cUStoMS BULLEtIN rEport www.customsbulletin.com

overnment has assured provision of fund Rs390 million to Pakistan Tourism Development Corporation (PTDC) for development of tourism in the country. This was stated

by Abdul Ghafoor, Managing Director PTDC, he told that as per vision of Prime Minister, 2017 has been declared as Tourism year and we are upgrading all PTDC Motels with modern facilities for tourists. He added that all the pending dues of PTDC employees will be cleared in current financial year.

This year April, UNWTO is going to hold it conference here in which Secretary General and delegates from 150 UNWTO member countries will participate, which will also help us to project a soft tourist friendly image of Pakistan. City Tour Bus service of Islamabad will be started soon which can cater the needs of students and families intend to see Islamabad. He told that Chakwal has been declared as Model Tourism District and we are meeting with heads of all country’s Chambers of Commerce and Industry to attract investment in tourism sector.

He said role of PTDC in development of tourism sector is commendable. There is need to do a lot more so that Pakistan’s tourism industry may flourish and it is known as a unique brand over the tourism world.

G

Senators attend pAc meeting to review audit report of 2013-14 ISLAMABAD

T

cUStoMS BULLEtIN rEport www.customsbulletin.com

he Public Accounts Committee (PAC) held its maiden meeting after inclusion of six Senators in the country’s top accountability body. Representing Upper House of the Parliament, Senators including Sherry Rehman, Hidayat Ullah, Mushahid Hussain Syed, Chaudhry Tanveer Khan and Azam Khan Swati

attended the committee meeting.

Earlier, PAC had its members only from the National Assembly.

Now, the PAC has become a body of the Parliament, chaired by Syed Khursheed Ahmed Shah. The senators were welcomed by the chairman and members at committee room at the Parliament.

During the meeting, the committee reviewed the audit report of year 2013-14 of the Ministry of InterProvincial Coordination. The audit

ofTicials informed the committee that Inter Board Committee of Chairmen (IBCC), a sub-ordinate department of the Ministry, had not submitted Rs 273 million in the ofTicial account rather deposited in the commercial banks against the rules.

Sherry Rehman questioned that who had taken the decision to deposit the money of IBCC in private banks. The PAC directed the ministry to open the account of IBCC in

the National Bank of Pakistan and investigate the matter within 20 days. The ofTicials informed the body that investigation in this regard was underway and a report would be furnished within 15 days.

The committee expressed dismay over the cut in the scholarship budget for year 2012-13 for the students of Indian Occupied Kashmir (IOK). The Ministry of Inter-Provincial Coordination’s ofTicials informed that as many as 800 stu-

dents from IOK had been studying in Pakistan. The PAC sought report on the budget cut from the Ministry.

Azam Swati expressed anger over the appointment of Dr. Riaz-ud-Din in Pakistan Institute of Medical Sciences (PIMS) who was allegedly involved in misapproriation of Rs 980 million during the tenure of previous government. The committee sought a report from the Ministry of Science and Technology on the matter within one week.

www.customsbulletin.com

ADVERTISEMENT

5

6

www.customsbulletin.com

www.customsbulletin.com

ISLAMABAD

tArIQ DErYA

www.customstoday.com

t

he Customs Staff of the Benazir Bhutto International Airport (BBIA) Islamabad needs access to the FIA data for effective proTiling mechanism to bring down percentage of baggage examination without compromising controls. The customs staff deputed at the BBIA airport needs Body X-ray equipment for detecting body concealments. The airport customs staffers also require residential accommodation at the new Islamabad airport to easily manage 24/7 operations.

This was stated by Neghma-e-Tehenat, Deputy Collector BBIA Islamabad, while giving an exclusive interview to Customs Today. She said only one scanner at arrival for checking of taxable goods/contrabands creates congestion problems at the time of multiple Tlights. She said at new airport, scanners are being placed outside the conveyor belt in line with the international best practices for Tive belts. Five scanners will be required at new airport. The VHF radio communication system and web based CCTV coverage shall also be required considering long distances within the airport and increased volume of passengers.

During current Financial Year FY2016-17, the

Thursday, February 23, 2017

customs staff disputed at the BBIA seized 2,247 numbers of mobile phones valued Rs32.89million whereas the Islamabad customs airport staff seized 2,997 numbers of mobile phones during the above said period of corresponding FY2015-16 priced Rs63.20million. She informed Customs Today that all the above said seizures were intercepted at the passengers’ baggage terminal.

Answering

a query, the DC airport said the BBIA undertook major initiatives as it set up Canine Section for better performance while the BBIA established a currency counter for online data feeding. The BBIA has been provided with an effective monitoring of staff through online CCTV coverage, she added.

The Model Customs Collectorate has established body search counters at the BBIA for detection of body concealments and it has also set up 24/7 passenger facilitation desk at airport to provide best quality services to the passengers. Responding to a query about the comparison between collections and assigned targets for FY2015-16 and FY2016-17, she said that during FY 16-17, the Customs Station BBIA received revenue of Rs17.27million against the allocated revenue of Rs15.47million.

During said period, the BBIA achieved 112% taxes against the earmarked target. m ste y s During the corresponding Fin o nicati l l u nancial Year 2015-16, the a m h s m age o co r i BBIA earned revenue of e d v a r o c Hf cctV long Rs7.56million against the asd g th e V e n s i r a bb side e signed target of Rs12.57miln w o d c d an or t an u i re d lion. The additional incomes p q r e i r a e e in th ers earned were due to new inialso b sseng s with a e c p tiatives taken by Collector f n a o e m dist lu MCC Islamabad Dr. Arslan, she sed vo remarked. i n c re a

7

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

problem of fiscal deficit

p

akistan’s exports have experienced a free fall during the first half of the current fiscal year, belying the government’s claim that it has maintained fiscal stability. The fiscal deficit have reached 2.4 percent of the gross domestic product during the period in review, revealing a hard fact that the government has failed to control the situation. Since the completion of a three-year extended facility programme of the International Monetary Fund in September last year, the government seemed to have relaxed its fiscal discipline. But problem originates from trade and industry which could not produce export surplus. Experts believe the deficit would reach eight percent of the GDP at the yearend as the government is also facing circular debt of Rs 480 billion. The circular debt is a new phenomenon appearing on the economic scene in recent years. In the budget for 2016-17, the government wanted to contain fiscal deficit to certain limit and it is yet to be seen which way the situation moves. The full year deficit reached 4.6 percent during 2014-15,at least 5.3 percent in 2014-15 and 5.5 percent in 2013-14.The deficit have crossed Rs799 billion in monetary terms during the first six months of the current fiscal year from Rs515 billion a year ago. According to experts, the government will have to take some hard steps to maintain fiscal discipline and increase exports. The situation is not normal and all is not well on the economic front. The opposition parties, regardless to their political agenda, should also support the government to come out of economic mess. Currently, the opposition groups are creating troubles even in the way of development projects and this is something which needs to be taken into account seriously. On the government’s part, it needs a fulltime finance minister which should maintain and monitor fiscal stability. The past performance shows the government has failed to control its expenditures which have increased by 5.6 percent of the GDP from 6.5 percent a year ago. There is no concept of austerity drive and the hard earned funds are mostly used on non-productive sectors. Apart from the circular debt, the fiscal deficit are on the rise and the government seemed unable to increase exports despite announcing a huge package for the export sector. On another note, the Finance Ministry has revealed a discrepancy of Rs58billion in the government funds during its six month accounts.

Matter of economic cooperation with china A

LAHORE

Dr AftAB AfZAL

www.customstoday.com

s Beijing is expanding its economic cooperation with various countries in the region, including Pakistan, the time has come the government should make every effort to attract the private sector of China to invest in the country. China has already signed over $20 billion investment package with Bangladesh and is shifting its small industry there. The Pakistani government and private sector should also persuade the Chinese government to establish light and heavy industrial parks, electricity generation plants and joint ventures in Pakistan which is emerging as a

potential destination for business and investment in the region.

There is a need to establish business-to-business contacts apart from close liaison between the two governments. The Chinese investors can avail opportunities in agriculture, food processing, textile, real estate and construction sectors of Pakistan. There are also huge investment potentials in the Tields of garments exports, manufacturing of medicines and electronic goods as well as oil and gas exploration sector. The China Pakistan Economic Corridor should not only be a road project, but also a highway for economic and industrial cooperation. It is good omen that the two countries have already been in negotiating process to establish industrial

zones along the corridor.

In this era of economic development, no country can economically survive all alone and has to cooperate with other nations.

China has already bought 40 percent shares of the Pakistan Stock Exchange and its Shanghai Electric Power has invested around $1.8 billion in K-Electric. The local business organizations are also keen to collaborate with Chinese investors to launch joint ventures, including a $2 billion K-Electric expansion plan in the coming years. China’s Baosteel Group, a steel giant, is interested in staterun Pakistan Steel Mills to regulate it on a 30-year lease. The foreign direct investment reached $1.9 billion during the last Tiscal year According to newspaper reports,

the foreign direct investment in Pakistan increased to $1.16 billion in the Tirst seven months of the current Tiscal year as compared to $1.06 billion in the same period of the previous year. Pakistan has recorded low level of foreign investment in recent years and the government will have to revisit its policies as to why foreign countries readily invest in Vietnam and Malaysia instead of Pakistan. It is the failure of the foreign missions which could not present the soft image of Pakistan and a land of opportunities for foreign investors. Many foreign investors, especially from western countries, had earlier winded up their businesses due to persistent energy crisis, poor governance and security challenges.

9

www.customsbulletin.com

Dubai gold price slips down to Dh149.50 DUBAI: Gold fell on Friday on a firmer dollar after US President Donald Trump promised a major tax announcement and as economic data boosted expectations of a US rate hike. Spot gold was down 0.4 percent at $1,225.42 per ounce by 0326 GMT. On Wednesday, it touched its highest since Nov. 11 at $1,244.67. US gold futures dropped as much as over 1 percent to $1,223.30 an ounce.

“The reversal (in prices) was almost entirely due to the surge in the dollar that took place after President Trump revealed he had a ‘phenomenal’ tax plan ready for unveiling in a few weeks? time,” said INTL FCStone analyst Edward Meir. Trump plans to announce the most ambitious tax reform plan since the Reagan era in the next few weeks, the White House said on Thursday, sending stock prices and the dollar higher on hopes for a cut in corporate tax rates.

pak perception needs to be transforming potential into success story KARACHI

cUStoMS BULLEtIN rEport www.customsbulletin.com

onsul General of Switzerland Philippe Crevoisier has said that although potential exists but efforts must be made to improve the perception and image of Pakistan in order to transform this potential into success story. Exchanging views with KCCI Office Bearers during his visit to the Karachi Chamber of Commerce & Industry, the Swiss Consul General said, “In order to attract more Swiss businesses and investment in Karachi, we will have to concentrate on improving the perception about the secu-

C

rity situation of Karachi and the overall image of Pakistan which is of big importance.” President KCCI Shamim Ahmed Firpo, Senior Vice President KCCI Asif Nisar, Vice President KCCI Muhammad Younus Soomro and KCCI Managing Committee members were also present at the meeting. Philippe Crevoisier pointed out that Switzerland has been in Pakistan since its existence and many Swiss companies were successfully doing business here in Karachi. “We are being represented not only in Islamabad but also in Karachi which is a very good sign as not so many European countries were not present here. This clearly indicates that we actually see the potential and I am trying to understand how to transform this potential into success story”, he added. He said that although the existing investment and trade figures between the two countries were very nice but still low which have to be improved but this is not going to be an easy task. Philippe Crevoisier informed that Switzerland’s industry comprises of 80 percent SMEs which were well-organized to quickly react to numerous markets.

Thursday February 23, 2017

Chambers

LccI urges govt to develop cottage small & medium enterprises A

LAHORE

cUStoMS BULLEtIN rEport www.customsbulletin.com

cting President of the Lahore Chamber of Commerce & Industry Muhammad Nasir Hameed Khan has urged the government to develop cottage and small & medium enterprises through strategic approach.

He was speaking at the oath taking ceremony of Lahore Sewing Machines Association here at the Lahore Chamber of Commerce & Industry. Convener Standing Committee on Cottage industry Ghulam Sarwar Malik, Chaudhry Javed Iqbal, Tausif Mirza, Sheikh Muhammad ShaTiq, Umer Afzal Mughal, Tahir Mahmood Mughal and Mian Muhammad Naeem also spoke on the occasion.

Muhammad Nasir Hameed Khan said that that the economic revival of the country would remain a dream until and unless the government redesigns its policies and divert resources towards cottage industry. He said that early establishment of a well equipped cottage city on the pattern of industrial zones in the country should be made part of the

economic agenda of the government.

He cited the example of China, Korea and United States where an equal importance is being given to the small business. They are treated at par with Large Scale Manufacturing sector. He said that despite having all the resources, the economic downturn being witnessed by the country is an eye-opener for the peo-

ple sitting at the helm of the affairs.

He called for a two-pronged strategy to cope with economic meltdown. He suggested to the government to evolve short-term sector-speciTic policies to break the economic logjam as it has proved that the longer term policies generally fall prey to political uncertainties. Secondly, he said that govern-

Dubai chamber hopes everyone’s game for ‘Dubai-opoly’ DUBAI

cUStoMS BULLEtIN rEport www.customsbulletin.com

DUBAI: The Dubai Chamber of Commerce believes its latest business and trade promotion will appeal across the board — the game board, that is. The chamber recently announced the launch of “DubaiOpoly,” a recreational game modeled after the famous Monopoly board game that will be sold in stores throughout the United Arab Emirates and the Gulf Cooperation Council region.

The Dubai version of the board game features various landmarks and attractions from the emirate.

Hamad Buamim, president and CEO of the Dubai chamber, said the board game offers an innovative approach

to promoting the nation. “By launching this unique initiative, we will promote Dubai’s brand and boost its international proTile,” he said.

“Last year, the chamber received over 600 international delegations and participated in more than 70 events abroad. Dubai-Opoly offers an ideal platform to showcase what Dubai has to offer businesses and tourists, while it also merges these two concepts together in a fun and interactive way.”

Meanwhile, Dubai Chamber of Commerce and Industry announced that it has launched “Dubai-Opoly”, a new recreational game as part of its efforts to promote Dubai as a global hub for business and trade. Modelled after the world-famous “Monopoly” board game, Dubai-Opoly will soon hit store shelves in the UAE and GCC

region, and feature some of the emirate’s most prominent landmarks and attractions. The new game complements the Dubai Chamber’s efforts to strengthen the emirate’s reputation as a thriving centre of commerce and a leading tourist destination. Hamad Buamim, President and CEO, Dubai Chamber, explained that the Chamber adopted an innovative and creative approach when it comes to developing the board game. “By launching this unique initiative, we will promote Dubai’s brand and boost its international proTile. Last year, the Chamber received over 600 international delegations and participated in more than 70 events abroad. Dubai-Opoly offers an ideal platform to showcase what Dubai has to offer businesses and tourists.

ment should expedite process of consultation with private sector as the business community is the real stakeholders and no policy should be announced without due consultation with the businessmen. Earlier, Muhammad Nasir Hameed Khan taken oath from the newly elected ofTice-bearers of Lahore Sewing Machines Association.

Singapore’s wilmar net profit rises 70% in Q4 ingapore’s Wilmar International Ltd, the world’s largest palm oil processor, said its fourth-quarter net profit rose 70%, particularly its tropical oils and sugar segments. Wilmar, one of the biggest soybean buyers, reported a net profit of US$560.8mil (RM2.5bil) for the three months ended December, compared with a net profit of US$330.2mil (RM1.47bil) a year earlier. Fourth-quarter core net profit, which excludes non-operating items, rose 70% to US$589.5mil (RM2.63bil). Revenue at Wilmar, which counts US agricultural products trader Archer Daniels Midland Co among its shareholders, was up 26.7%. However, Wilmar’s 2016 annual net profit fell 5% to US$972.2mil (RM4.33bil), its smallest in nine years, due to untimely purchases of soybeans which led to a loss in the second quarter. –CB Report

S

10

www.customsbulletin.com

Drug smuggler held with 2.5 kg heroin at Lahore Airport Thursday February 23, 2017

National faisalabad fIA captures human trafficker from Samundri FAISALABAD

NAEEM SHEIkH

www.customsbulletin.com

LAHORE: The Airport Security Force (ASF) seized a drug smuggler who was trying to smuggle 2.5 kg heroin into Saudi Arabia.

The man was held at Lahore’s Allama Iqbal International Airport.

The accused was identified as Naeem Maseeh.

The Airport Security Force handed over the accused with the recovered material to the Anti-Narcotics Force (ANF).

Further investigation is underway.

ASo foils bid to smuggle rs10m items throgh Afghan transit trade C

LAHORE

M HAYAt

www.customsbulletin.com

he Federal Investigation Agency (FIA) arrested a human trafficker from Samundri city during an action. According to details, Deputy Director FIA Syed Imam Zaidi and Sub-Inspector Muhammad Sohail Awan raided his residential place of Chak No: 139 G.B Sumandri and captured a human trafficker identified as Muhammad Shafiq. The accused was running an illegal business of sending innocent people abroad after gulling big amounts from them. Sources told Customs Today that Muhammad Shafiq was involved in several cases of defrauding innocent people and sending them abroad by using illegal and inhuman means. The FIA team recovered five Pakistani passports, fake stamp visas and two tickets on the spot. The accused gulled Rs167930 from complainant Ghulam Hussain, a resident of 463-G.B, Sumandri, Faisalabad, for overseas employment in Saudi Arabia but he failed.

T

ANf recovers 19.6 ton drugs from various cities in a day he Anti-Narcotics Force (ANF) has recovered 19.6 tons of different forms of drugs worth billions of rupees and arrested 19 drug pushers and smugglers in 20 raids during a nationwide campaign According to details, sources informed Customs Today that informers shared some vital information with the Anti-Narcotics Force. Acting on the information, raids were carried out against the smugglers in Karachi, Rawalpindi, Peshawar, Quetta, Lahore, Faisalabad and some other cities. The forms of drugs recovered include 14.4 ton hashish, 3.2 ton heroin and 2 ton Afetamin, sources informed. –Mubeen Hussain

T

ustoms Preventive AntiSmuggling Organization Saturday seized historical Rs10 million Afghan Transit Trade illegally imported gas cylanders, Panasonic irons, water motors, blades, Vatika hair oil, locks, almunium sheets and other miscellaneous items from a Road near Kala Shah Kaku.

Official sources told Customs Today that on the ASO team intercepted a truck fully loaded with the item including 180 Panasonic irons, 130 water motors, 150 gas cylinders, 190 cartons of Vatika hail oil, 7 sacks of herbal weeks, 25 carton of locks and different goods and articles. The sources said that the ASO that the articles were be-

longing to the Transit Trade agreement at once impounded the truck number 306 PUC and took the

goods and article in custody.

The sources said that the goods and articles were to be supplied

in various market places including Shah Alam market, Hall Road and Temple Road in Lahore while the truck was coming from Peshawar.

The sources said that the truck was transporting the goods under the supervision of one Noor Khan.

The operation was conducted on the information of Collector of Customs Zulfiqar Younas under the supervision of Assistant collector Asim Awan led by Superintendent Mumtaz Ajmal Mian while inspectors including Shah Jehan, Khalid Butt and others inspectors were also part of the team.

Sources said that currently, a number of valuable cases have been registered against the smugglers and the elements involved has created a sever deterrence against smuggling under the limits of Customs Lahore Preventive.

customs, police seizes smuggled Iranian diesel T

KARACHI

S r kHAN

www.customsbulletin.com

he Anti-Smuggling Organization of Customs Preventive with the collaboration of Mochko Police has foiled a bid of smuggling Irani diesel in the area of Mochko. According to details, the ASO team received an information that huge quantity of Iranian diesel is being smuggled from National Highway to the city and then move to other parts of the country.

On a tip-off, a team of ASO with the support of area police has Tield their ofTicers at Mochko CheckPost and during the checking, the authorities signalled a truck to stop and upon its checking it was found that it contains smuggled Irani diesel concealing into the hidden cavities of the truck.

The Customs authorities informed Customs Today that 1000 liters of Irani diesel has been found from the hidden cavities of the truck, adding that the truck driver namely Dad Muhammad has been arrested from the spot.

The sources further informed Customs Today that the investigation is being continued with the

arrested driver in order to reach to the real culprits of smuggled Irani diesel. The authorities fur-

ther said that the seized diesel has millions of rupees cost in international market.

11

www.customsbulletin.com

FIA arrests notorious human trafficker from Jaranwala FAISALABAD: The Federal Investigation Agency (FIA), has arrested a human trafficker namely Umer Daraz son of Khushi Muhammad during an action.

The suspect is a resident of tehsil Jaranwala , district Faisalabad.

Sources told Customs Today that FIA Deputy Director Syed Imam Zaidi and Sub-inspectors Taimoor Haider and Abbas Bajwa conducted a raid on the whereabouts of the accused person who was running an illegal business of sending innocent people abroad after extorting amounts from them.

The accused also extorted Rs3,30,000 from complainant Amjid Abbas for sending him to Malaysia .

Delay in issuance of DD back claims effects exports SIALKOT

ZAfAr MALIk

www.customsbulletin.com

he inordinate delay in the issuance of duty draw back claims to the Sialkot based gloves manufacturers and exporters has been resulted into as many as 12 percent visible decline in the exports of gloves from Sialkot , due to which the gloves exporters have been suffering from great financial crisis. In Sialkot, the gloves manufacturers and exporters have expressed grave concern over this critical condition. They said that the down fall of the gloves industry in Sialkot began after the massive reduction in duty draw back ratio to only 1.54 percent by the government; while, the concerned

T

departments were still adopting the inordinate delay in the issuance of the duty draw back to the gloves exporters.

They urged the government to increase the duty draw back ratio from 1.54 percent to 12 percent like the China and India, as both of these countries were fully supporting their gloves manufacturers and exporters by giving them the maximum trade and export related incentives as well. Sialkot based leading gloves exporter Muhammad Anwar Butt (former Chairman of Pakistan Gloves Manufacturers and Exporters Association-PGMEA) said that the gloves industry was badly hit by the electricity and gas outages, which proved a “cut throat” for the gloves industry in Sialkot. Muhammad Anwar Butt added that the gloves manufacturers and exporters have been getting the raw leather material on very high rates in Pakistan as compared to China and India, due to which the Sialkot exporters were producing the leather gloves very costly as compared to China and India.

National

Deputy collector Asma issues notice to owner of smuggled generators T

FAISALABAD

IQrA SHEHZADI

www.customsbulletin.com

he Customs Adjudication Deputy Collector Asma Hameed has issued a show cause notice to owners of non-duty paid generators .

Sources told Customs Today that Anti-Smuggling Organization (ASO) intercepted a vehicle near Gutt Wala Toll Plaza and recovered foreign used generators during the searching of the vehicles. The ASO team asked the owner of the goods who was identiTied as Muhammad RaTique and the second person named as Ghulam Mustafa to show documents regarding legal import of used and foreign generators but they failed to produce any legal documents regarding possession of the above said items. Therefore, the ASo team seized the generators under customs laws and forwarded the case to Customs Adjudication for further legal action.

Now, Deputy Collector Asma Hameed issued notice 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 Cus-

toms Act, 1969 and served him a show cause notice as to why the seized item should not be conTiscated under aforementioned provisions of the law. However, the adjudication has directed the accused person to Tile reply on next date of hearing. The seizing agency has also been directed to Tile reply in the re-

Thursday February 23, 2017

spective 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.

Sc summons chairman fBr in tax matters case ISLAMABAD

cUStoMS BULLEtIN rEport www.customsbulletin.com

he Supreme Court summoned Chairman Federal Board of Revenue (FBR) in person in tax matters case. A three-member bench of the apex court headed by Chief Justice Mian Saqib Nisar heard the case regarding Commissioner Income Tax Land Revenue RTO, Rawalpindi. The bench after reviewing documents of the case remarked that high court announced an important decision regarding land revenue which was missing in the documents. The FBR counsel informed the court that the hearing of case was pending since long and it was mistake of former counsel to not include the high court’s decision in documents. He said that the high court verdict would be submitted to include in documents. On this, the chief justice asked the counsel to inform the court about some important points of the case so that it could proceed further. The FBR counsel pleaded the court to grant some time for preparation of the case as he was recently attached with the case. The court also summoned Chairman FBR and adjourned hearing of the case.

T

customs Valuation revises value of chemicals

T

KARACHI

cUStoMS BULLEtIN rEport www.customsbulletin.com

he Directorate General of Customs Valuation has revised the Customs value of chemicals, Boric acid, Aluminium Oxide, Chromic Acid, Barium Chloride, Sodium Meta Bi Sulphite, Sodium Hexa Meta Phosphate, Borax Decahydrate, Brown Aluminium Oxide, Sodium Acid Pyrophosphate, Dependence, Chloroform, Stearic Acid (single & triple pressed), Mono & Di Ethylene Glycol and Perchloro Ethylene through Valuation Ruling No 1040/2017 under Section

25A of the Customs Act, 1969.

The Custom values of ’ the subject Chemicals were earlier determined vide Valuation Ruling No 938/2016 dated 26.9.2016. There were several representations from different traders and trade bodies i.e. Pakistan Chemicals and Dyes Merchants Association (PCDMA), for determination of customs value of the chemicals a fresh. More over the importers have claimed that the prices of subject chemicals are showing down ward trend in the International market hence existing valuation ruling, which is over four months old is required to be revised in the

light of honorable High Court of Sind, at Karachi’s orders dated 10.11.2015 in Constitutional Petition No. D- 6918/2015. Since 90 days have passed and a number of representations were received from commercial importers and Pakistan Chemicals and Dyes Merchants Association regarding values determined in the valuation ruling dated 26.9.2016, hence an exercise was initiated to re-determine the values of subject items.

Meeting with all the stakeholders including importers, trade bodies i.e. Pakistan Chemicals and Dyes Merchants Association (PCDMA) and representa-

tives from clearance Col lectorates. was held on 07.02.2017 to discuss the current international prices of the subject chemicals. The view point of all participants was heard in detail and considered to arrive at Customs value for subject Chemicals.

Method adopted to determine Customs values: Valuation methods provided in Section 25 of the Customs Act, 1969 were duly applied in their regular sequential order to address the particular valuation issue at hand. The transaction value method as provided in Sub-Section (1) of Section 25, found inapplicable in light of the wide variety

12

www.customsbulletin.com

Philippine groups call for rise in tobacco tax Thursday February 23, 2017

World

MANILA: Civil society groups in the Philippines called for significant increase in tobacco tax every year starting 2018 to discourage the Filipino youth from smoking. The HealthJustice Philippines, National Anti-Poverty Commission’s Youth and Student Sectoral Council, Philippine Cancer Society, Center for Empowerment and Development of the Elderly and Seniors (CEDES), National Anti-Poverty Commission’s Senior Citizen’s Sectoral Council, EcoWaste Coalition, ANG NARS, New Vois Association of the Philippines, and ONE for Nursing Empowerment seek a P1 per cigarette stick or P20 per pack increase in tobacco taxes. “The tobacco tax is primarily a health measure. Increasing the tobacco tax is recognized by the World Health Organization (WHO) as one of the most effective ways of preventing the youth from starting to smoke,” the groups said in a statement.

chinese customs action on waste imports anticipated

S Africa-Nigeria trade drop about $4.1b in 2016 JOHANNESBURG

cUStoMS BULLEtIN rEport www.customsbulletin.com

BEIJING

cUStoMS BULLEtIN rEport www.customsbulletin.com

T

C

hinese customs authorities look set to place a renewed focus on imported scrap materials, as part of an initiative dubbed ‘National Sword 2017’ – which has vowed to target ‘foreign garbage smuggling’. The scope of the ‘National Sword’ initiative has yet to be fully detailed, but a translation of a news post on the Chinese Government’s website suggests that the focus will be on ‘industrial waste, ewaste, plastics and other solid waste smuggling illegal activities’.

As well as scrap materials, the National Sword will also encompass agricultural materials, resource products including coal, and a crackdown on drug-related smuggling activities, according to the Chinese Government website. The news post states: “The “national sword 2017”

joint special action will focus on Tive areas of smuggling of the implementation of special combat and focus on remediation: First, crack down on “foreign garbage” smuggling, focusing on industrial waste, e-waste, Plastics and other solid waste smuggling illegal activities, and actively take the initiative to cooperate with environmental protection departments. The “foreign

garbage” to intercept outside the country [sic], and earnestly safeguard the national ecological and environmental security and the health of the people.”

Commenting on the announcement, Simon Ellin, chief executive of the Recycling Association, said: “The focus seems to be at the blatantly illegal end of the market which we know still exists.

russia log exports up in volume and tax accounts for 45% of the average in value in Jan-Dec 2016 inal results of 2016 show that that is 3.21% more than during the energy bill the Russian roundwood trade respective period of the previous ax is currently the biggest component of domestic energy bills in the Netherlands and is set to increase even more within the next three years, according to comparison website pricewise.nl.

The website says Dutch households currently pay an average of €60 in a special tax to fund sustainable energy development. However, by 2020, the ODA levy will have gone up to over €200 a year, the website said. Introduced in 2013, the levy is used to subsidise offshore wind farms and other sources of green energy.

Pricewise said the annual levy was below €10 four years ago. Pricewise says just 35% of domestic energy bills is due to the actual cost of gas and electricity. Some 45% of the average bill is tax and 20% goes to energy transport companies. –CB Report

T

F

on the foreign markets is still getting more active. This conclusion can be made on grounds of the foreign trade statistics published by the Russian Federal Customs Service.

Thus, in January-December 2016, Russian enterprises expanded roundwood exports both in volume and value terms. During the indicated period, the Russian log export reached 20.065 million m3,

year when these figures came up to almost 19.44 million m3. The total value of the Russian exported logs during all twelve months of the last year grew year-on-year by 0.93%. In January-December 2016, the Russian log export reached just under US$1.352 billion, while during the respective period of the previous year it came up to US$1.339 billion. –CB Report

rade volumes between Nigeria and South Africa fell to about N1.3 trillion ($4.1billion) in 2016 from N1.5trillion ($4.8billion) in 2015, South African Ambassador to Nigeria, Lulu AaronMnguni, revealed.

Aaron-Mnguni who disclosed this in Abuja on Thursday said that bilateral relations between the two countries were excellent but could still be improved.

According to the envoy, trade increased steadily from N488 billion ($1.5billion) in 2010 to N1.5 trillion in 2015. This increase was as a result of Nigeria’s demand for automotive parts, South Africa’s export cars, uncoated paper and paperboard. He added that South Africa wants to learn from Nigeria which is good in the Tield of oil and gas, in or-

P

der to boost its economy.

Meanwhile, The government is facing a showdown with the UN and the World Trade Organisation (WTO) over SA’s attempts to bend the rules of the recently instituted Trade Facility Agreement. The agreement mainly targets developing countries as a means of boosting trade, wealth creation and job opportunities by expediting freight movement, cutting red tape and harmonising customs.

Broadly speaking, it provides technical assistance and capacity-building and promises money and time-saving through a more streamlined movement of trade goods. Africa’s reaction to the agreement is lukewarm at best, with only 17 of the WTO’s 40 African member states signing on. The organisation’s global membership is 164.

The South African government is worried about the insistence by the agreement’s sponsors, the UN Conference on Trade and Development and the WTO, that member governments are obliged to participate on a joint committee with the private sector.

philippines invites Qatari investors hilippine Economic Zone Authority (PEZA) presented range of investment opportunities to prospective Qatari investors during a conference yesterday at The Ritz-Carlton Doha which marked the conclusion of its weeklong Middle East Roadshow.

The three-country roadshow held in preparation for the visit of President Rodrigo R Duterte which will likely be in April, took the Philippine delegation headed by PEZA Director General Charito Plaza to Dubai, Riyadh before its final leg in Doha. At yesterday’s investment conference, Plaza dis-

cussed before prospective Qatari investors the wide array of investment opportunities in various Special Economic Zones (SEZs) to be built across the country. They include agro-industrial, agroforestry, aqua-marine, tourism, retirement homes and wellness villages, mineral processing, defense industrial complex, renewable energy eco-industrial park, Halal hubs and production zone and free trade zone in international air/sea ports, among others.

The PEZA chief explained why the Philippines is an ideal foreign investment spot. –CB Report

Mines ruling to cost gov’t p654 million in taxes

O MANILA

cUStoMS BULLEtIN rEport www.customsbulletin.com

regone local and national tax revenues from communities hosting mines ordered shuttered by the Department of Environment and Natural Resources were estimated to reach P653.6 million a year, Finance Secretary Carlos

G. Dominguez III said. As for DENR Secretary Gina Lopez’s “solution” of generating ecotourism jobs to compensate for job losses due to mine closures, Dominguez said this might not be viable as the country still lacked infrastructure to bolster tourism growth. At the same time, large-scale nickel mines are carrying on with their operations despite verbal orders from Environment

Secretary Gina Lopez that they should shut down their projects even as the Chamber of Mines of the Philippines (COMP) looks to an interagency body to break the impasse. The Philippine Nickel Industry Association (PNIA) said its members would continue operating since they have not received any written order for them to shut down. “How can we act when there

is no basis on which to act?” PNIA president Clarence Pimentel Jr. said in an interview. Pimentel said Lopez’s announcement last week of new results from a mine audit lacked due process, particularly with the environment chief’s refusal to make the results public. During the induction of the Economic Journalists Association of the Philippines’ ofTicers for 2017.

13

www.customsbulletin.com

Brazil’s Localiza posts 1.4% fall in Q4 net profit

World Customs

BRASÍLIA: Brazilian car rental firm Localiza (RENT3.SA) on Sunday said fourth-quarter net profit fell 1.4 percent from the previous year to 104.4 million reais ($33.49 million).

Localiza posted a full-year 2016 net profit of 409.3 million reais, up 1.7 percent on 2015, the company said in a statement on its website.

The company said the fourth-quarter fall in profit was partly due to a net rise in financial expenses resulting from increased debt from a bigger fleet and an increase in booked depreciation compared with the final quarter of 2015.

Earnings before interest, tax, depreciation and amortization (EBITDA) in the fourth quarter rose 18.8 percent to 270.9 million reais.

Brazilian iron ore exports to china swell in Jan xports of Brazilian iron ore to China during the first month of the year increased 36.5% yearon-year to 16.2Mt as revenue jumped some 244% to US$874mn, foreign trade department Secex reported. Manganese ore shipments to the Asian giant rose 53.2% to 107,259t in the period and revenue soared 705% to US$30.4mn, Secex said. Meanwhile, revenue from ferro-niobium exports to China surged 173% to US$44.3mn as volumes increased 192% to 2,245t.

Copper cathode sales brought in US$11.6mn, down 76.2% year-onyear, with volumes slumping to 2,009t from 10,711t in January 2016. Bauxite shipments increased 83.7% to 351,380t, and rose 68.5% in terms of revenue to US$8.72mn.

Ferronickel exports to China dropped 45.9% to US$9.48mn and decreased 52.4% in volume to 3,544t, the Secex figures show. The chart below shows Brazil’s overall iron ore exports. –CB Report

E

India’s agriculture exports plunge 6% ndia’s agriculture exports declined by almost 6 per cent from $10.81 billion during April to November 2015-16 to $ 10.20 billion for the same period this fiscal, according to the Agricultural and Processed Food Products Export Development Authority data. Experts cited demonetisation, along with high Indian export prices and government’s removal of export incentives, as some of the major causes for the dip. Export of 16 key agricultural products from the country including fresh vegetables and seeds, pulses, wheat, milled products, Basmati rice, cereals registered negative growth between April to November 2016-17. This is the second fiscal of de-growth in agri exports for India. India’s farm exports, which were growing consistently during past years. –CB Report

I

Saudi Arabia airline staff held for smuggling gold

BANKOK

cUStoMS BULLEtIN rEport www.customsbulletin.com

I

n the first case of the year involving an insider in gold smuggling, an airline’s ground staff was arrested for smuggling gold at the Mumbai airport. Goya Ahmad Siraj A, who landed in Mumbai aboard Saudi Arabia airline’s SV 772, was carrying three gold bars weighing 2.1 kilogram worth Rs 64 lakhs. Based on profiling, the Air Intelligence Unit (AIU) officers intercepted the Saudi Arabian national who had arrived from Jeddah. His personal search resulted in the recovery of two gold bars of one kilograms each and one

gold bar of 100 gram. These gold bars are valued at Rs 63, 71,400.

The passenger had concealed the gold bars in black coloured pouches kept in pockets of trouser worn by him. They were recovered and seized under the provisions of the Customs Act, 1962.

Custom ofTicials said that the passenger in his statement (recorded under the sec. 108 of the Customs Act, 1962) admitted to the knowledge, possession, carriage, concealment and recovery of the said gold bars. These were being smuggled into India without payment of customs duty and in contravention of provisions of the Customs Act, 1962.

“The passenger who is employed in Saudi Arabian Airlines Ground Services, in his statement has further admitted that out of the above 2.1 kilo-

grams of the seized gold bars, two kilograms of gold belongs to him and 100 gram belongs to his cousin Mr Fahid Ali, who too is a citizen of Saudi Arabia. Hence he was arrested,” said an AIU official. However, a Facebook post went viral on Friday stating that the two kg, 100 gram gold was recovered from the wife of an IPS officer, Mr Sada Date.

However, the AIU denied the same.

Meanwhile, Saudi Arabia is considering two options for the shape of Saudi Aramco when it sells shares in the national oil giant next year: a global industrial conglomerate, and a specialised international oil company, industry and banking sources said. The listing of Aramco expected to be the world’s biggest initial public offer and raise tens of billions of dollars.

Thursday February 23, 2017

korea logs trade surplus for 60 straight months orea posted a trade surplus for the 60th straight month in January at $2.8 billion, the customs agency said Wednesday. According to the Korea Customs Service (KCS), the country’s exports stood at $40.3 billion, while imports came to $37.5 billion. With the $2.8 billion trade surplus, the country has remained in positive territory since Feb. 2012.

January’s exports and imports each grew 11.2 percent and 19.7 percent from the same month last year. The KCS said this is the first time for exports to chalk up double-digit growth January 2013. Breaking exports down, semiconductors and petroleum products grew 41.5 percent and 66.3 percent, respectively. The KCS attributed the growth in semiconductors to growing demand for integrated circuits and memory chips in Hong Kong and China. Petroleum products also gained ground in China, Australia and Japan. In imports, energy products and semiconductor manufacturing devices showed a steep rise, while machinery and cars declined. However, January’s surplus showed a sharp decrease from $6.77 billion in December because of a drop in exports. Outbound shipments plunged 10.6 percent in January from a month ago while imports slightly declined by 2.1 percent during the same period of time. A KCS official said January’s slump stemmed from the week-long Lunar New Year holiday and exporters’ tendency to push out inventory in December. –CB Report

K

pBIr expects p15b revenue from cigarettes

T

MANILA

cUStoMS BULLEtIN rEport www.customsbulletin.com

he Bureau of Internal Revenue (BIR) expects to generate up to P15billion revenue from cigarette tax stamps to meet its P1.82 trillion target for the current Tiscal year. “We are estimating it at P10P15 billion and, with proper enforcement, maybe we can increase the collection, especially when we have to meet the demands of the P1.8 trillion target,” BIR Deputy

Commissioner Jesus Clint Aranas told reporters on the sidelines of the bureau’s tax campaign started in Manila. BIR data showed that excise tax collections on tobacco products in 2016 declined by 8 percent from a year earlier, largely as a result of the graphic health warning and proliferation of fake stamps and cigarettes. Total excise collections on tobacco last year dropped to P91.6 billion from P99.5 billion in 2015.

The BIR said it was looking to tap a third-party to monitor the proliferation of fake stamps and ciga-

rettes after the joint operatives of the Bureau of Customs-Intelligence and Investigation Service (BOCCIIS) and the Philippine National Police (PNP) simultaneously raided warehouses of raw materials for cigarettes in Bulacan and Pangasinan.

Criminal charges were also Tiled against the owners of an illicit depot in Davao, where P50 million worth of fake cigarettes were seized.

The raw materials were used for making fake cigarette products like Marvels, Mighty, La Reyna Mascada, Marlboro, Philip Morris, Jackpot

and Skag Fortune, which are originally produced by Philip Morris-Fortune Tobacco Corp. (PMFTC).

The proliferation of fake cigarettes as well as fake stamps led the BIR to issue letters of authority (LOA) to Tobacco Industries of the Philippines, Wongchuling Holdings Inc., La Campana Fabrica de Tabacos Inc., Mighty International and Mighty Corp. The BIR also said it would issue LOAs to other tobacco players in the country as a way of expanding its investigation into the use of fake tax stamps.

14

www.customsbulletin.com

IHC seeks record from FIA in Hajj corruption case Thursday February 23, 2017

Lahore

ISLAMABAD: The Islamabad High Court (IHC) sought complete relevant record from the Federal Investigation Agency (FIA) in an appeal moved by Hamid Saeed Kazmi challenging sentence awarded to him in Hajj corruption case.

A single judge bench of Justice Mohsan Akhtar Kyani issued directions while hearing an appeal moved by the former federal minister for religious affairs, Hamid Saeed Kazmi through Senior Advocate, Latif Khosa. Latif Khosa pleaded the case before the bench stating that all allegations levelled against Kazmi was baseless as his client was innocent. Meanwhile, representative of the FIA sought time from the bench for filing reply which was granted by the court.

NAB decides to file reference against khalid Humayun

customs I&I detects mega duty tax evasion on poultry medicines

LAHORE

www.customsbulletin.com

M IMrAN MEHAr

www.customsbulletin.com

L

ahore Executive Board Meeting (EBM) of NAB was held under the supervision of of Chairman NAB at Headquarter.

The Executive Board decided to Tile a corruption reference against Khalid Humayun Langov, Ex-Advisor Finance, Govt of Balochistan along with his Tive co-accused involved in corruption and embezzlement of Government funds in the Balochistan Province. The funds embezzled in this case are to the tune of Rs2.2 billion.

Meanwhile, Chairman National Accountability Bureau Qamar Zaman Chaudhry, chaired a meeting to review progress on the basis of feedback regarding Training of Trainers

Lawyers observing black day akistanis Tuesday mourned the victims of a suicide bomb in Lahore, as the death toll rose to 15. The Punjab chief minister Shahbaz Sharif declared a mourn day after Monday´s blast on Lahore´s Mall Road, one of the city´s main arteries, at rush hour during a busy protest. At least 15 people were killed, emergency including six police officers, while up to 87 were injured. On Tuesday lawyers across Pakistan including lawyers of Customs Court, Lahore boycotted the proceedings. Custom lawyers offered fatiha for victims of the suicide attack. The attack underscored the challenges faced by Pakistan in its push to stamp out militancy, even as security dramatically improved in 2015 and 2016. Lahore residents vented their fury at the militants and the government at the blast site early Tuesday. –M Imran Mehar

P

(TOT), Refresher and Capacity Building courses conducted for NAB Investigation OfTicers/Prosecutors in 2016 and training planned for the year 2017 at NAB Headquarter.

During the meeting, DG Training and Research (T&R) informed that a Training of Trainers (TOT) Course of 5 days duration was conducted at NAB HQ and 18 officers from BS18-19 attended the course. He informed that 4 refresher courses of two week duration for IOs/COs were conducted in 2016 in which 529 Investigation Officers/Case Officers attended. He informed that two refresher courses for Prosecutors were conducted of two week duration in 2016 in which 67 Prosecutors attended. He informed that three Inter-Regional Trainings were planned during 2016 of one week duration in which 87 officers/IOs/COs attended the training.

LAHORE

M HAYAt

D

irectorate of Customs Intelligence and InvestigationFBR has unearthed a mega scam of import of poultry medicines, vaccines on bogus documents.

According to the details, the Directorate Customs I&I also seized huge quantity of poultry medicines and vaccines, besides taking the import company’s record into its custody. Deputy Director Anti-Smuggling Ali Zeb Khan along with Superintendent Anti-Smuggling Waqar Ahmed Cheema disclosed this in a media brieTing held here at the Customs I&I Directorate on Sunday. They told media persons that in pursuance of credible information by the Director Zeba Haye, they said that they along with other staff of the Directorate raided godown and

LHc to conduct day-to-day hearing of chaudhary Sugar Mill case from 20th

T

he Lahore High Court adjourned the hearing of Chudhary Sugar Mills till 20th of February. The LHC also issued an order that learned counsels for the parties are in agreement, so instead of taking up the stay applications, main appeals be heard on a day-today basis from 20th of February 2017. It is also agreed between the parties that the august order for the respondents submits that restraining order dated 09.02.2017 passed by the august Supreme

Court of Pakistan in civil petitions.

Appellant mills namely M/s Chaudhry Sugar Mills Ltd (R.Y. Khan), Ittefaq Sugar Mills (Bahawalpur) and Haseeb Waqas Sugar Mills (Muzaffargarh) are still operational and carrying out production activities. They submitted that media is also reporting the same. Before proceeding further, we want to be fully satisTied that the order of the august Supreme Court of Pakistan is being implemented in letter and spirit. –Sajid Nawaz

Head OfTice of M/s Marush International at Kot Lakhpat and Model Town respectively.

The importer had been dealing in poultry vaccine, medicine and Premixes imported from USA, Singapore and Spain, and clear the same by way of mis-declaration of value through under invoicing from Karachi, they

S

mentioned. They added that M/s Marush International was involved in tax evasion, under-invoicing at import stage, money laundering and forgery, causing massive loss to the national exchequer. The said company, they continued, had evaded taxes of millions of rupees by hoodwinking the customs authorities.

Sc disposes of drug smuggler bail

upreme Court (SC) of Pakistan has disposed of bail application of the complaint in drug smuggling case.

Two member bench under the supervision of Justice Manzoor Ahmed Malik heard bail application of accused Imteaz in drug smuggling case.

The counsel of appellant argued that the allegations on the appellant are baseless and court may accept the bail of accused Imteaz. Counsel argued in the favour of appellant for the bail.

On the other side the addi-

tional prosecutor general told the court that on the available information police stopped the accused on road and during the searching the Raiwind City police has found one kilogram and 250 gram heroine from him and registered case against him.

Added more, the Libratory report also becomes a part of police file and court may reject the bail application of the accused.

After hearing the arguments from both parties, honourable judges of Supreme Court have rejected the bail application of the accused. –Sajid Nawaz

customs Appellate tribunal hears 12 important cases

T

LAHORE

SAJID NAwAZ

www.customsbulletin.com

he Customs Appellate Tribunal bench-II, comprising Judicial Member Omer Arshad Hakeem and Technical Member Imran Tariq, heard 12 cases on Tuesday and adjourned all of them until the next hearing.

The cases heard include Customs Faisalabad versus Kamal Textile, Customs Faisalabad versus sweety Textile, Customs Lahore versus Maxi Inch, Abid Shah versus Faisalabad and Javid Khan versus Customs Faisalabad. On Tuesday, Customs Appellate Tribunal heard cases including Abdul Razaq versus Directorate of Intelligence and Investigation Gujrat, Muhammad Eziz Sohail

versus Directorate of Intelligence and Investigation Gujrat.

Furthermore, the tribunal heard the cases of Kashif Malik versus Customs Multan, Customs Lahore versus A.I Corporation, Shaukat Soap versus Post clearance Audit (PCA) Lahore, Abdul Rehman Junaid versus Customs Sambrial and Awais Kamboh versus Collector Sambrial.

In all the cases, counsels for ap-

pellants appeared before the court and presented arguments. After hearing the arguments from all the parties, the tribunal member reserved verdict in two cases of Shaukat Soap versus PCA Lahore and Muhammad Eziz Sohail versus Directorate of Intelligence and Investigation Gujrat. All other cases’ hearings were adjourned for next dates.

15

www.customsbulletin.com

Port Houston official recognized as advocate for seafarers WASHINGTON: The Houston International Seafarers’ Center will give Roger Guenther, executive director of Port Houston, its 2017 Bronze Anchor Award during a banquet in May, the Seafarers’ Center announced Wednesday. The award recognizes an individual, company or organization that has served as a leader and advocate for the welfare of seafarers. According to the news release, Guenther has assisted chaplains and the Seafarers’ Center staff in navigating the regulatory and bureaucratic landscape associated with a working port. He also has supported the center’s efforts to deliver humanitarian services to seafarers at the Port of Houston. Most recently, Guenther was “instrumental” in relocating the Seafarers’ Center to a newer, more efficient facility.

port of Seattle denies wrongdoing in bonus payouts n a special meeting on Tuesday, the Port of Seattle’s commission denied that there was anything wrong with a seven percent bonus paid out to the port’s employees in 2015. A state auditor believes that the payments may have violated the state constitution as they were not directly tied to performance. The $4.7 million “one-time retention bonus” was approved in December 2015. Commission president Tom Albro said Tuesday that while it might have been done differently, it was clear at the time of the payout that “what we were doing was beyond question.” Port CEO Ted Fick resigned last week after a two-week period of administrative leave, and while his resignation coincided closely with the publication of the audit results, the commission says

Nigerian ports berth 19,833 vessels in 3 years

I

that the two events are not related.

642 port employees received the payout, including Fick, and port records suggest that he proposed the bonus but did not immediately inform the commission that he would receive a payment himself. In a written statement submitted to the Seattle Times, Fick denied that the bonus was his idea, and said that he had told the commissioners about his own payment when they inquired. The bonuses are not Fick’s first controversy during his two-year tenure at the port. He was pulled over last year for driving 79 mph in a 50 mph zone and tested over the limit for driving under the influence.

He has been charged, but he told the port commission that he hopes to avoid a trial. –CB Report

Ports & Shipping

WASHINGTON

cUStoMS BULLEtIN rEport www.customsbulletin.com

T

he National Bureau of Statistics (NBS) says the trafTic statistics at Nigerian ports recorded 19,833 vessels berthed at the various ports between 2013 and 2016. The statistics is contained in a report on “Shipping and Port Activities 2013 to 2016’’ released by NBS

on Wednesday in Abuja. Similarly, the report stated that 544 million tonnages were registered within the period under review. The report said that 2014 recorded the highest number of vessels berthed as well as tonnages registered while the least were in 2016.

“Tin Can Island Port handled the most ships accounting for 33 per cent of total number of ships that berthed in all ports and 32 per cent of total tonnage registered in all ports. “It is closely followed by

Apapa port which accounted for 28 per cent of ships that berthed and 25 per cent of total tonnage registered. “Onne port accounted for 15 per cent of ships that berthed and 30 per cent of total tonnage registered. “Also, cargo trafTic statistics revealed a total of 312 million tonnes, 185, 808 cargo trafTic was recorded at all Nigerian ports between 2013 and 2016. “63 per cent or 196,851,236 of the cargo trafTic were inwards while 115, 334572 or 37 per cent were outward.’’

In addition, the report stated that Apapa port handled the most number of inward cargoes accounting for 39 per cent of total inward cargoes. It stated that the Apapa data was closely followed by Tin Can Island and Delta ports accounting for 31 per cent and 11 per cent respectively. “Calabar port accounts for 4.29 per cent to record the least. Similarly, Onne ports handled the most number of outward cargoes. “Onne ports accounts for 80 per cent of total outward cargoes and closely followed by Delta and Apapa ports, accounting for 10.63 per cent and 3.52 per cent respectively.

Thursday February 23, 2017

ports of Jersey reveals “compelling” world Duty free proposal orts of Jersey has revealed how a “compelling” offer from longstanding incumbent Dufryowned World Duty Free (WDF) led to the recent award of a new 10-year contract following a competitive duty-free tender process. The new agreement, which begins on March 1, will see WDF operate a 750sq m airside duty-free departures store, expanding its retail coverage by a further 260sq m. The space extension will allow for the introduction of new products, more local products and a redevelopment of the retail layout, as previously reported which is due to start at the end of the summer.

DFNIonline understands the speciality and convenience retail concession winners have been decided and that announcements are imminent. The food and beverage contract was awarded to Casual Dining Group. The various tenders and contact awards are part of the new masterplan process for the airport. –CB Report

P

Labor Dispute Intensifies at Spanish ports S

WASHINGTON

cUStoMS BULLEtIN rEport www.customsbulletin.com

pain’s minister of public works has announced sweeping plans for liberalization of hiring at the nation’s ports, which could lead to the loss of 6,500 unionized jobs over the next three years. On Thursday, the nation’s longshore unions protested the move and threatened a series of labor actions if the government does not withdraw the plan.

Under current Spanish rules, port operators have to hire stevedores from one local stafTing company, known as a SAGEP (Sociedad Anónima de Gestión de Estibadores Portuarios). In 2014, the European Court of Justice ruled that this arrangement was a violation of EU laws on freedom of establishment, and ordered Spain to open up the system to competition. The Spanish government says that the nation

pays a penalty exceeding $25,000 for every day that it does not comply with the court order – and the Tines are set to quadruple. Faced with the elimination of the traditional system, Spain’s longshore unions have responded with outrage. “The Spanish Government threatens the growth of the Spanish economy and seeks to make the dockworker profession disappear from national ports,” said Jordi Aragunde, general coordinator of the International Dockworkers Council (IDC). “The Ministry of Public Works intends to act on a decree that prevents the country’s economic recovery.”

The International Transport Federation also voiced strong opposition to the decree. “The Spanish government is tearing up the rule book with a callous disregard for Spanish jobs, Spanish prestige and international conventions. Their plans go beyond belief,” said ITF president

Paddy Crumlin. Crumlin pointed out that the Spanish dockers had just reached a new labor agreement with the port employers’ association in mid-January.

Meanwhile, The Port of IndianaBurns Harbor handled close to 2.6 million tons of cargo in 2016, marking its third highest tonnage in 10 years and completing the best three-year total in its history, port ofTicials said. More than 8.6 million tons have been handled at the Burns Harbor port since 2014, ofTicials said.”Fourth quarter shipments were especially strong for us and included two export ships of Indiana grain, raw materials for the steel industry as well as several large-dimensional cargoes,” Port director Rick Heimann said. Major cargoes included steel, limestone, carbon products, grain and iron ore.

Grain shipments were up 57 percent from 2015 while coal was up

11 percent. Mineral and oil shipments increased 19 percent.

Port officials were reluctant to judge how President Donald Trump’s proposed trade policies, including tariffs on imported goods, would affect the port. Rich Allen, its director of communications, said the consensus was, “It’s too early in the Trump Administration to tell. “We’re taking a wait and see stance,” Allen said. Other highlights of 2016 at the port included an $8 million expansion of Ratner Steel, a significant spike in large cargoes and nearly $2.5 million in port improvements.”Watching the Ratner Steel expansion take shape is especially encouraging because it further demonstrates that by using the port’s strategic location and multimodal capabilities, a company can gain a competitive advantage and grow its business,” Heimann said.

16

www.customsbulletin.com

Dry port receives Rs644.24m revenue during January under various heads ISLAMABAD: The Dry Port Peshawar collected revenue of Rs644.24million from Customs Duty (CD), Miscellaneous Surcharges, Redemption Duty Imports (RDI), Sales Tax (ST), Additional Income Tax (AIT) and Federal Excise Duty Imports (FEDI) during January of Financial Year FY2016-17.

According to details told by Fazle Samad, Additional Collector Peshawar, that performance of the department has been satisfactory during the month of January FY16-1. He added that during said month, the Dry Port Peshawar generated handsome amount from all duty taxes.

Thursday, February 23, 2017

CUSTOMS BULLETIN

Multan customs collects rs4.32b customs duty till 15th feb of fY2016-17 MULTAN IMrAN ALI

www.customsbulletin.com

T

he Model of Customs Collectorate Multan collected Rs4.32 billion customs duty against the assigned target of Rs4.75 billion up to 15th February of current Financial Year 2016-17.

Sources told Customs Today that the Collectorate of the Multan Customs has attained 91% customs duty revenue target under the supervision of Collector Sarfraz Ahmad Warraich during the Tirst seven and half months of the current Tiscal year 2016-17.

Multan Customs has collected Rs13.11 billion sales tax up to 15th February. Sources said that sales tax collection has been reduced in the Multan collectorate due to dropping import clearances at Multan Dry Port in the last few months of the existing economic year 2016-17. The sale taxes collection depends upon the clearances of High Speed Diesel consignments. As Import of the Multan Customs comprises of 97% import clearances of High Speed Diesel and sale taxes collection has been witnessing decline in the collection due to less clearances of High Speed Diesel in the current Tiscal year.

The Federal Board of Revenue has also decreased the tariff rate on the import clearances of High Speed Diesel during the current Tiscal year and quantity of the import clearances at Multan Dry Port is also de-

creasing due to international prices of High Speed Diesel.

Collectorate of Multan Customs has collected Rs7415.553 million petroleum development levy from clearance of High Speed Diesel dur-

ing the current Tiscal year so far.

Multan Customs has collected Rs121.939 million under the head of federal excise duty (FED) against the set target of Rs108.867 million during the Tiscal year 2016-17 so far.

Similarly, Model of Customs Collectorate Multan has collected Rs138.309 million against the set target of Rs423 million under the head of withholding tax (WHT) during the economic year 2016-17 so far.

Dg Valuation revises customs values of different chemicals KARACHI

wAQAr AHMED ANSArI www.customsbulletin.com

T

he Directorate General of Customs Valuation revised the customs value of chemicals, methylene chloride, propylene glycol, sodium-B1-carbonate, mono sodium glutamate, calcium acetate and calcium propionate through Valuation Ruling No: 1044/2017 under Section 25A

of the Customs Act, 1969.

According to details, consequent upon in the back drop of the Director General Customs Valuation orders vide Order-1n- Revision No. 271/2016 dated 14.12.2016, regarding revision of Valuation Ruling No. 948/2016 dated 06.10.2016, with reference to customs value of propylene glycol Thailand origin.

Sources said that an exercise was undertaken to re-determine the customs values of subject chemicals, in terms of Section 25-A of the Customs Act 1969.

There were also several representations from different importers/ traders and trade bodies i.e. Pakistan Chemicals and Dyes Merchants Association (PCDMA), for determination of customs value of the subject chemicals.

The importers have claimed that the prices of subject chemicals are showing down ward trend in the International market hence existing valuation ruling, which is over 90 days old is required to be revised in the light of honorable High Court of Sind, at Karachi’s orders dated

10.11.2015 in Constitutional Petition No. D- 6918/2015. Since 90 days have passed and a number of representations were received from commercial importers and trade Associations regarding values determined in afore mentioned valuation ruling, hence an exercise was initiated to re-determine the values of subject chemicals.

Stakeholders’ participation in determination of Customs values: Meeting with all the stakeholders including importers, trade bodies i.e. Pakistan Chemicals and Dyes Merchants Associ-

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

ation (PCDMA) and representatives from clearance Collectorates, was held on 11.01.2017 and 09.02.2017 to discuss the current international prices of the subject chemicals. The view point of all participants was heard in detail and considered to arrive at Customs value for subject Chemicals.

The transaction value method as provided in Sub-Section (1) of Section 25, found inapplicable in light of the wide variety of invoices submitted at import stage the veracity of which could not be ascertained fully.