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ISLAMABAD

TARIQ DERYA

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he Model Customs Collectorate of Peshawar’s performance has shown decline due to levy of one percent Infrastructure 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.

This was stated by Chief Collector Sarwat Tahira Habib while giving an exclusive inter-

Vol 2, Issue No. 75

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view to Customs Today.

Talking on the assessment of the performance of the Customs Northern Region for January 2016-17, she said the Customs Northern Region has been able to achieve the overall revenue target of January FY-2016-17 as it collected Rs2744.89 million against the assigned target of Rs2737.20 million which is 13% higher than the corresponding month of January 2015-16.

'New check posts being established in Balochistan to thwart smuggling'

Airways’bills is a phenomenon for AFU: Addl Deputy Collector Kh Khurram

Ishaq Dar asks FBR to meet tax revenue target

WHT Zone of RTO-II focusing on increased strength of agents, tax-net

DG CustomValuationTanveer rejects revision petition of M/s Meerab Enterprises

Collector Dr Saeed has said that Custom Dept surpassed the target of Rs7.2 billion | SEE pAgE 02 |

Deduction of airways’ bills is a phenomenon for AFU, Islamabad | SEE pAgE 03 |

Dar, while appreciating the FBR efforts, urged the board to meet the tax revenue | SEE pAgE 04 |

The WHT Zone of RTO-I) is putting more focus on increased strength | SEE pAgE 11 |

DGCustomsValuationTanveerhasissues OrderinRevisionNo.293/2017undersection | SEE pAgE 16 |

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Multan Customs earns Rs16m through auction of seized goods Saturday, February 4, 2017

National

MULTAN: The Customs Intelligence and Investigation Multan Range has generated Rs15.93million through monthly auction of confiscated goods and vehicles lying in the state warehouse.

According to details, the said office held a public sale of confiscated goods and vehicles lying in the warehouse of Customs Intelligence and Investigation Multan Range. A number of participants have taken part in the bidding.

Customs Intelligence presented four impounded vehicles, including Toyota Corolla X, Mercedez Benz, Toyota Corolla and Suzuki APV, during an auction of January.

'new check posts being established in Balochistan to thwart smuggling'

ISLAMABAD

QUETTA

TARIQ DERYA

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irectorate of Customs Intelligence and Investigation Peshawar has collected revenue Rs 21.5 million from January 1 to 27 while 20 cases registered of smuggled goods, non-duty paid and offending vehicle. Director Muhammad Saleem told Customs Today that during said period the Anti-Smuggling Organization (ASO) and intelligence seized huge quantity of smuggled goods adding that, it collected revenue Rs10.5 million to seized miscellaneous goods. During above said period the Peshawar Customs Intelligence collected Rs5.2 million by impounded 07 vehicles involved in smuggling of goods (offending vehicles). He said that during above mentioned period the directorate collected Rs5.8 million by seizing 05 non- duty paid vehicle adding that, these vehicles has impounded from different location under jurisdiction of Peshawar Intelligence. Muhammad Saleem said that during 2nd half of FY16-17 (Oct to December) the directorate of intelligence collected revenue Rs77 million and registered 44 cases against smugglers of miscellaneous smuggled goods.

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ollector Dr Saeed Khan Jadoon has said that Custom Department surpassed the target of Rs7.2 billion set by Federal Board of Revenue (FBR) and submitted Rs14.2 billion revenue in the national exchequer.

While addressing the International Customs Day ceremony, Dr Saeed said the Custom Department is offering special relief and facilities on tax payment to defaulters aiming at to discourage illicit trade and smuggling. He said new check posts were being established to thwart illegal ways of trade in the province, adding that the department is determined to cross the targets set by Federal Board of Revenue this year too. Regarding establishment of gate on Taftan border, Dr Saeed said a number of challenges had been addressed through gate construction and efforts were underway to facilitate traders and civilians there. Later, he distributed shields and honorary certiQicates among Custom ofQicers and staff who displayed high performance in cases of drugs recovery and thwarting smuggling bids.

Meanwhile, Model Customs Collectorate Gawadar foiled smuggling attempts and conQiscated Qine quality narcotics and huge quantity of Iranian diesel in different operations.

peshawar customs Intelligence generates Rs21.5m till Jan 27

Customs arrested three accused in these operations. According to details, Collector Gawadar Customs Saeed Akram received credible information about transportation of narcotics in a vehicle. He immediately constituted a team of Customs Anti-smuggling Organization to counter the smuggling attempt.

The ASO team established a check post on the exit points of the city and

started searching vehicles. While searching, the ASO team intercepted a Suzuki vehicle bearing registration No: GA-5423. The team searched the vehicle and recovered 10 kilogram Qine quality weed inside the hidden boxes of vehicle. The ASO team conQiscated the weed and arrested the driver of the vehicle who was identiQied as Khan Muhammad.

Sources said that the ASO team

registered a case against the accused and sent him to bars whereas the conQiscated weed is said to be worth Rs1.2 million.

Meanwhile, in another operation, the ASO team seized 18,000 liter Iranian diesel from an oil tanker. The seized diesel is worth Rs1.1 million.

The ASO team impounded the offending oil tanker and registered a case against two accused.

ADc Beelam issues ono against owner of nDp Toyota premio

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FAISALABAD

IQRA ShEhZADI

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ustoms Adjudication Additional Collector Beelam-urRamzan has issued Order-inOriginal (ONO) against the accused person named as Fahid Yaqoob and ordered to seize the smuggled vehicle. As per the details, Anti-Smuggling Organization (ASO) team impounded a non-duty Toyota Premio motor car bearing registration num-

ber NW- 975 Islamabad. The team asked the driver identiQied himself as Fahid Yaqoob to produce legal customs-duty paid documents but he was failed to produce the same.

On this the Customs authorities impounded the vehicles.

The examination team of Faisalabad Customs along with representative of Faisalabad Dry Port Trust (FDPT) during examination observed that the condition as well good of the vehicle and smuggled one. It was suspected that high tar-

iff good have been replaced with low tariff good. It is necessary to mention here after impounded the vehicle neither importer nor his authorised person approached for clearance of their consignment.

Later, the case was sent to the adjudication for further legal action.

Superintendent Sardar Mohammad, Inspector Abdul Jabbar, Safdar Ali and Masood Saeed Chohan appeared before the authority, while no one appeared to defend the case from respondent’s side nor any

written reply was received from the respondent. Therefore, Customs Adjudication Additional Collector Beelam ur Ramzan ordered to impounded the vehicle under clause 14 of Section 156 (1), 157(1) and (2) of the Customs Act, 1969.

Meanwhile, Customs Adjudication Additional Collector Beelamur Ramzan has issued Order-inOriginal (ONO) against M/s W.A International & Forwarding Agency and ordered to seize the smuggled goods. According to details, customs

authorities intercepted a vehicle and recovered huge quantity of nonduty paid self adhesive stiker paper.

These goods were being transported through M/s W.A Forwarding Agency, while the consignment was booked from Lahore to Faisalabad. The examination team of Faisalabad Customs along with representative of Faisalabad Dry Port Trust (FDPT) during examination observed that the condition as well as packing of goods was quite shabby and not up to the mark.

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Faisalabad FIA arrests human trafficker from Kot Yousaf FAISALABAD: The Federal Investigation Agency (FIA) has arrested a human trafficker from tehsil Lalian during an action.

Sources told Customs Today that Deputy Director FIA Syed Imam Zaidi and Sub Inspector Muhammad Abid Gill conducted a raid at his resident in Kot Yousaf and arrested accused person who is identified as Muhammad Altaf son of Muhammad Khalil.

Sources said that accused was running an illegal business of sending innocent people abroad after extorting huge amounts from them and showing golden dreams of their lucid future abroad.

Saturday February 4, 2017

National

customs confiscates smuggled velvet cloths valued RS1m

Airways’ bills is a phenomenon for Afu: ADc kh khurram

ISLAMABAD

m fAIZAn

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irectorate General, Customs Intelligence and Investigation, Federal Board of Revenue, Rawalpindi, has seized 1840 kg nonduty paid imported ladies-velvet cloths worth Rs one million. The Customs I&I have lodged an FIR and arrested two accused named Hayat Ullah Khan and Khan Zada. According to sources, the directorate received a tip-off about a smuggling bid of the said cloths from Peshawar to Rawalpindi by Mazda Mini truck with registration No C-2671. A special team of anti-smuggling staff was constituted. The anti-smuggling staff near Chongi No 26 on G.T. Road, Islamabad, searched a vehicle.

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faisalabad ASo seizes smuggled items worth Rs5.1m FAISALABAD

nAEEm ShEIkh

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he Anti-Smuggling Organization (ASO) Faisalabad conducted various operations against smugglers and recovered goods worth Rs5.1million during third week of January 2017.

Sources told Customs Today that Deputy Collector Muhammad Rizwan Khan constituted a team to curb smuggling attempts. The ASO team consisted of Saeed Akhtar Joiya (Superintendent), Khalid Ashraf Noor, Ali Zahid, Khalid Mehmood Dogar (Inspectors), Muhammad Ashraf, Liaquat Ali, Israr Ahmad and Muhammad Abdullah (Sepoys).

The team seized two vehicles under Section (U/S 157) worth Rs.2million being used for smuggling transportation. Other goods, including tyres and tubes worth Rs325000, spare parts worth Rs75000 and other miscellaneous items weighed 38297 kg valued Rs 4193860, were also recovered.

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ISLAMABAD

TARIQ DERYA

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eduction of airways’ bills is a phenomenon for Air Freight Unit (AFU), Islamabad. The administration of AFU is seriously digging out this problem as the AFU has been lodging several FIRs against importers.

This was stated by Khawaja Khuram Naeem, Additional Deputy Collector (ADC), AFU, Islamabad, during an exclusive interview with Customs Today.

He said the AFU is optimistic about the plus revenue collection target of upcoming 3rd quarter of Financial Year (January to March 2016-17), adding “we are on target and will have to meet all the targets till date”. He said the AFU wants to enhance its efQiciency for the best performance in this regard. He emphasized that the AFU wants improvement through audit and facilitation which will ultimately beneQit the business community.

Answering a query regarding the customs duty collection during July to December FY16-17, he said the AFU composed satisfactory revenue collection during above said period, maintaining that during December FY16-17 the AFU collected revenue of Rs160.91million under head of the Customs Duty (CD).

He further said that during above said period the AFU collected revenue of Rs124.68million under head of CD.

During November FY16-17 the AFU collected revenue of Rs126.71million in October whereas the AFU collected revenue of Rs121.68million during September. The AFU collected revenue of Rs145.24million during August and collected revenue of Rs95.16million during July FY16-17 under head of Customs Duty (CD). Answering another question regarding the collection of Sales Tax, he said the AFU collected revenue of Rs363.76million under the said head

he further said that during above said period the Afu collected revenue of Rs124.68million under head of cD. During november fY16-17 the Afu collected revenue of Rs126.71million in october whereas the Afu collected revenue of Rs121.68million during September

Dg Valuation revises value of used jute bags

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KARACHI

wAQAR AhmED AnSARI

www.customsbulletin.com irectorate of Customs Valuation has revised the customs values of used jute bags vide Valuation Ruling No.1020/2017.

Pakistan Jute Mills Association and Port Muhammad Bin Qasim Collectorates have requested for determination of customs values of used jute bags imported from different origins. A meeting for determination of custom values of new and

used jute bags with stakeholders was conducted on 11.01.2017. A large number of importers as well as manufacturers participated in the meeting and issues connected with valuation of subject goods were discussed in detail. The importers insisted that the prices of used Jute bags cannot be compared with new-jute bags and that used bags prices are in-fact showing downwards trend in the international market. Importers further said that as they import second

hand bags according to their requirement on whole sale basis and these bags are used for packing of fruits, vegetables, and are not for use for packaging of exports consignments and that they are used for carrying goods within country mostly. The manufacturers on the other hand showed worksheets of costing Wom raw-materials and insisted for higher values as according to them, imported /5-71sed jute bags were not only affecting their market.

during December FY16-17. It collected revenue in shape of Sales Tax (ST) randomly like Rs277.87million during November, Rs187.00million during October, Rs271.61m during September, Rs292.22m during August and Rs175.35million of ST during July FY16-17. Additional Deputy Collector, AFU, answering yet another query of Customs Today, he substantiated AFU’s performance regarding the collection of Income Tax throughout the Qirst half of Financial Year 2016-17.

fIA arrests human trafficker ederal Investigation Agency (FIA), Islamabad on Thursday unearthed a network of fake visas and passports and nabbed an agent involved in human trafficking. The agent namely Muhammad Saddique s/o Ghulam Sarwar, resident of Narowal, was arrested from Sector I10 near Sabzi Mandi area of Federal Capital. Case has been registered and further investigation was in progress.

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Govt realizes all Rs172,870m of 5 divestment proceeds in 3 years ISLAMABAD: No amount is outstanding as the government has realized full proceeds relating to privatization transactions of five public sector entities during the past three years, amounting to Rs172,870 million officials sources said. “The Privatization Commission has completed five (05) privatization transactions, during the last three (03) years. Asfull proceeds relating to the said transactions have been realized, no amount is outstanding,” the sources said. The public entities privatized during the past three years included divestment of 19.8% equity of United Bank Limited (UBL), official data revealed adding that as per this divestment, as many as 214,921,931 shares were divested at the cost.

Saturday February 4, 2017

Business

Dar asks fBR to meet tax revenue target KARACHI

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inance Minister Senator Ishaq Dar, while appreciating the Federal Board of Revenue (FBR) efforts, urged the board to meet the tax revenue target that was set at the beginning of the current Qiscal year.

Chairing a meeting on the matters pertaining to the FBR, the minister said that strong tax revenue collections would play an important role in achieving higher, sustainable and inclusive economic growth.

The Qinance minister said that accession to the Organisation for Economic Cooperation and Develop-

Tea import decreases 7.99% in h1 ISLAMABAD

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ment (OECD) Multilateral Convention on Mutual Administrative Assistance in Tax Matters had enabled Pakistan to beneQit from automatic exchange of information for tax purposes with other countries that were signatories to the convention.

Railways spends Rs451 million on stations renovation: nA told

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ea import into the country during first half of current financial year decreased by 7.99 percent as compared the imports of the corresponding period of last year. During the period from July-December, 2016-17, about 107,408 metric tons of tea worth $257.584 million imported to fulfill the domestic requirements as compared to imports of 91,090 metric tons worth $279.953 million of same period of last year. According the data, during last two quarters, spices import into the country also reduced by 5.45 percent.

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Earlier, Haroon Akhtar Khan, special assistant to the prime minister on revenue, briefed the Qinance minister on the performance of the FBR. He said that the FBR was actively working on the implementation of the remaining steps under the OECD

Multilateral Convention on Mutual Administrative Assistance in Tax Matters, to which Pakistan became a signatory in September 2016.

He informed the minister that all formalities to sign the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information, which is one of the remaining steps to be implemented under the said OECD Multilateral Convention, are almost complete. Meanwhile, Ishaq Dar chaired a meeting to discuss various reforms being undertaken to enhance the quality and capacity of the Audit Department. Speaking on the occasion, the minister said that audit was an important function for good governance, as it played a major role in enhancing transparency and ensuring accountability.

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ISLAMABAD

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arliamentary Secretary for Railways Syed Muhammad Ashiq Hussain said in National Assembly that Pakistan Railway had spent Rs451.256 million on account of repairs, renovation and reconstruction of railway stations during the tenure of the present government. During the question hour in the house, Ashiq Hussain said reconstruction of Bahawalpur, Okara, Sahiwal,

Raiwind, Narowal, Nankana Sahib and Hassanabdal stations were in progress while 31 stations were under finalization for renovation and provision of basic passenger amenities.

He said Pakistan Railways has developed indigenous software and has made ticketing and reservation through e-ticketing system initially for 36 trains with effect from October last year. Ashiq Hussain said now the passengers can book their seats from anywhere at any time through railway website www.pakrail.gov.pk.

He said the present government initiated the project if up-gradation of rehabilitation of signaling system from Lodhran to Kotri section by getting PC-I approved, amounting to Rs 38,262.991 million. He said the work however, was deferred as the same was included in China-Pak Economic Corridor (CPEC). Ashiq Hussain said in addition, the two projects of railway signaling from Lodhran to Shahdara and from Mirpur Mathelo to Shahadpur were inherited by the present government, termed as ‘sick projects’.

Scrapping at gadani Shipbreaking Yard banned QUETTA

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alochistan Chief Minister Nawab Sanaullah Zehri yesterday banned scrapping work of oil tankers and LPG containers at Gadani Shipbreaking Yard with immediate effect. The chief minister issued these instructions at a high-level moot over Gadani Shipbreaking Yard Industry. The moot reviewed various aspects of the blaze incidents erupting at the shipyard. The moot was attended

by Local Government Minister Sardar Mustafa Khan Tareen, Planning and Development Minister Dr Hamid Khan Achakzai, CM Adviser on Forests and Livestock Ubaidullah Jan Babat, MPAs Liaquat Ali Agha and Abdul Quddus Bizenjo, Balochistan Chief Secretary Saifullah Chattha, Home Secretary Akbar Harifal, Balochistan Development Authority Chairman Dr Shuaib Gola, director environment and representatives of Ship Breakers Association. The meeting also decided to set up Gadani Shipbreaking Regulatory Authority under which facility of one-widow operation would be provided and efforts for legislation to establish the authority would be geared up.

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fBR, pRA finalise parameters for tax adjustment claims LAHORE

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fter a lapse of almost three years, the Federal Board of Revenue (FBR) and Punjab Revenue Authority (PRA) Qinalised the parameters for implementation of the memorandum of understanding (MoU) signed in 2014 to transfer an outstanding amount of approximately Rs16 billion to the latter un-

der input tax adjustments claims.

PRA has been continuously battling with the FBR to seek its pending claims in the backdrop of annual revenue shortfalls it has been facing for the past three years.

PRA Additional Commissioner (Headquarters) Shahzad Mehmood Gondal told Dawn that the agreed parameters and release of amount

by FBR would help achieving the annual sales tax on services target of Rs80bn Qixed for Qiscal year 2016-

17. He said the authority has collected an amount of Rs43bn in JulyJan 2016-17 as compared to Rs33bn it collected in the same period of 2015-16. Mr Gondal said a technical committee meeting between the two sides would decide the exact amount of pending claims and transfer modalities which would not only help in clearing ST amount on annual basis but will also help taxpayers in claiming ST refunds and avoid double taxation.

He said the FBR and PRA also reached an understanding for data sharing and streamlining ST on services procedures.

According to parameters, the following is agreed: PRA claims shall be scrutinised by the FBR for necessary veriQication on priority basis.

FBR claims shall also be scrutinised

by PRA for necessary veriQication on priority basis. For scrutiny and veriQication of the claims, the following parameters shall be observed: In

case of sales tax invoices, out of three Qields i.e. (i) invoice No., (ii) invoice date and (iii) invoice amount of tax, at least two shall match and this should be sufQicient for the purposes of veriQication. In case, the invoice number and date match but the tax amount does not match, the lesser of the two amounts shall be considered veriQied.

In case of import GDs, the Customs Station Code, GD No. and date are material particulars.

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Saturday, February 4, 2017

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PESHAWAR

nADIR khAn

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modern customs terminal will be established on Torkham border at Rs12billion to provide all possible facilities to exporters and importers.

Five billion dollar revenue target has been set from the import and export on the said border in near future. These views were expressed by Collector Customs Peshawar Division Qurban Ali while addressing a representatives’ gathering of the Customs Clearing Agents Association held at Customs Colony, Landi Kotal, on Thursday.

Flanked by Assistant Collector, Torkham Customs Center, Fazal Shakoor, Collector Qurban Ali said that on the direction of the Federal

Board of Revenue, some meetings have been convened with officials of Torkham Custom House and clearing agents community to get information of their problems and take necessary steps to further boost import and export on Torkham border.

He further said that setup of a modern custom dry port will be approved in the next week that will not only increase trade but also provide job opportunities to the tribesmen. It is the desire of government to export Pakistani commodities to every local market of

Afghanistan and central Asian countries, Qurban stressed.

Qurban Ali disclosed that in the recent year, volume of seized goods has doubled as compared to last year. In replaying to the reservations of the customs clearing agents regarding the political administration and National Logistic Cell (NLC), he assured them of solving their problems after discussing with the officials concerned. Prior to the meeting, Chairman Customs Clearing Agents Association, Torkham, Mirajuddin Shinwari apprised the collector Peshawar of the problems being faced by the clearing agents.

rn mode a f o etup the that s ed in v d i o r a p s se be ap rther increa he fu t will r y o l p n o y m dr l not nities custo at wil portu h p t o k b e e jo of next w lso provide desire e h t a but ni n. It is trade akista esme p b i t r r t o f to the to exp al market o t n e nm loc ies, gover every ountr o c t n s a e i i s odit ral A comm d cent n a ed n nista stress n a b r Afgha Qu

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

EDIToRIAL

financial secrecy must be retained

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ccording to newspaper reports, the State Bank of Pakistan has signed a technical cooperation agreement with the World Bank to achieve six strategic goals which the bank has set for 2020. With signing of the agreement, nothing has been said about the possible leakage of financial information of the country. In a situation when the successive governments in Islamabad have signed pacts after pacts to get loans and assistance from the world donor agencies, it is hard to imagine that anything such as financial secrecy will be kept intact at any stage or any level. The State Bank is proud of being the first financial institution in South Asia to sign such a deal with Reimbursable Advisory Services of the World Bank. Reports suggest that the State Bank strategic plan has been framed and built around for five years to resolve the strategically important issues facing the country’s economy and the financial sector. The finance minister’s team has been proudly repeating the mantra of achieving financial stability, but this kind of agreement shows the government has to go a long way to stabilize the financial sector and face the internal and external challenges confronting the national economy. The financial management is key to launch development projects and maintain debt servicing against rising volume of loans. But the imprudent policies have curtailed the tax collections base instead of increasing the tax net. The policies introduced during the last financial year, in which withholding tax was imposed on banking transactions and this year imposition of withholding tax in real estate sector, would curtail not only the tax collections but also tax base. The vibrant real estate sector which supports over 80 industries is now under pressure one way or the other and the government will not be able to recover the financial losses in terms of duties and taxes. If 80 industries lower their production capacity, obviously it will put negatively impact on tax generations. It is yet to be seen who persuade the finance minister to introduce these kinds of policies at a time the business and industry of the country were not prepared for it. Putting the entire industrial sector in crisis is great disservice to the nation. The current agreement signed by the State Bank will cover six strategic goals to enhance monetary policy.

pace of economic development A

LAHORE

DR AfTAB AfZAL

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ccording to newspaper reports, a World Bank ofQicial has predicted that the economy of Pakistan will further improve this year as conditions here are conducive for investment. Visiting the Tarbela hydropower extension project, Kristalina I. Georgieva, a senior bank ofQicial, said that the country has made progress in energy and infrastructure sectors and conditions are conducive for foreign investment. As a matter of fact, this government has sincerely worked for the improvement of economic conditions in the country, but political instability is increasingly

becoming an area of concern for common man. Since the government took over the ofQice, it has been facing tough time from certain opposition parties for one reason or the other. However, during its three and half years’ tenure, the government also could not made any visible improvement in the lives of the people.

Corruption, though has been lowered on the World Perception Index, is actually touching the new heights in the country. The security situation has improved to some extent but it is still far from a satisfactory level and the government has still been reluctant to adopt modern techniques to enhance tax net and overhaul the industrial sector.

Pakistan is facing water threats

from India which is the lifeline of Pakistan. Most of the hydropower projects are in the implementation stage and others are likely to be constructed in near future. On another hand, the new Indian government is bent upon cancelling the Indus Water Treaty signed in 1960. The World Bank is signatory and guarantor of the pact and it will have to play its role in stopping India from water aggression. Pakistan has so far obtained of $31 billion from the bank since 1952 when it took the Qirst loan. It is also important to note that the country’s economy survived its initial Qive years after the independence without taking any foreign loan. However, once it took the loan, it became habit of every successive government to

seek foreign loans without improving the country’s economy.

The process of taking loans has been speeded for the last one decade and it seems the ploy will lead the country to nowhere. It is, therefore, hoped that the government will generate its own Qinancial resources by boosting trade, business and investment. Pakistan still has to go a long way to introduce structural reforms in growth and energy sectors, but sooner this process should start the better.

Though the government is focusing on economic revival and seeks investments in energy, infrastructure and social sectors, but in practical terms, it is fully depending on the China Pakistan Economic Corridor.

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Swiss export growth depends on pharmaceuticals ZURICH: Swiss exports hit a record CHF210 billion ($211 billion) last year and the pharmaceutical sector was one of the big drivers. However, this tremendous growth is largely down to higher prices for medicines, a trend that has been criticized by some circles.

While watchmakers, the machine-tool industry and tourism officials continue to struggle, the Swiss pharma industry appears to be leading the way, seemingly unaffected by the strong Swiss franc and global economic turbulence.

Despite a slowdown last year, the 250 pharma businesses that make up the sector in Switzerland boasted record figures, exporting over CHF80 billion worth of drugs and other products – a 15% increase compared to the previous year.

pakistani British mayor discusses mutual ties with fccI president FAISALABAD

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aisal Rashid, Mayor of Warrington (UK), paid a brief visit to Faisalabad Chamber of Commerce and Industry (FCCI) and discussed various issues relating to the bilateral relations. He informed Customs Today that he has been elected from a city in which there are only two percent Pakistanis. Faisal Rashid is an expatriate Pakistani, belonging to Faisalabad. He had been living in Warrington for the last many years and is now actively playing his role in the overall development of this city.

He has been elected for this presti-

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gious office only due to his excellent community services. Faisal Rahid said he is trying to promote bilateral trade between Faisalabad and Warrington in addition to promoting community level relations between the two cities.

He also expressed satisfaction over the election of two engineers for the representative trade body of Faisalabad (FCCI). He also hoped that the elders of two cities will take measures to exchange delegations. “It will help Faisalabad to enhance its exports to Warrington in addition to understanding the role of local community of Warrington. Earlier, Engineer Muhammad Saeed Sheikh, President FCCI, welcomed Faisal Rashid and said it is very encouraging that he has been elected purely on merit by the majority of local communities other than Pakistanis.

Saturday February 4, 2017

Chambers

cDA, Imc asked to resolve outstanding issues of traders A

ISLAMABAD

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delegation of Islamabad Chamber of Commerce and Industry (ICCI) led by President Khalid Iqbal Malik visited Traders Welfare Association, G-11 Markaz Islamabad to congratulate the newly elected President Chaudhry Waqas Anjum Gujar and other ofQice bearers of the Association.

Speaking at the occasion, ICCI President Khalid Iqbal Malik, said that traders were facing many problems while most of the issues were related to CDA and Islamabad Metropolitan Corporation. He called upon Sheikh Anser Aziz, Mayor IMC and Chairman CDA to take urgent measures for resolving the problems of G-11 Markaz in order to facilitate the growth of business activities. He assured that ICCI would highlight their key issues at every relevant forum for their urgent redress.

Khalid Javed, Chairman Founder Group said that role of markets was important in promoting business activities, but CDA was not paying due attention to their better development. He said that Chairman CDA

should formulate a new strategy to resolve the key issues of business community and develop markets on modern lines that will help in better development of the city as well.

Khalid Chaudhry, former Senior Vice President ICCI, Ch. Irfan and others also congratulated the newly elected President and other

office bearers of G-11 Markaz.

Chaudhry Waqas Anjum Gujar, newly elected President, Traders Welfare Association G-11 Markaz in his remarks said that apart from many other issues, non-availability of a rent law was the major problem due to which traders were feeling insecure about their future. He

LccI signs agreement with RYk and gccIs to uplift economic activity

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LAHORE

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he Lahore Chamber of Commerce and Industry (LCCI) Wednesday inked Memorandum of Understanding (MOU) with Rahimyar Khan and Gujrat Chambers of Commerce and Industry (GCCI) to make joint efforts for the cause of business community and to uplift of trade and economic activities. The LCCI President Abdul Basit, GCCI President Sheikh Abrar Saeed and President Rahimyar Khan Chamber of Commerce and Industry Chaudhry Muhammad ShaQiq inked the Memorandum of Understanding on behalf of their respective organizations. Almas Hyder, Awais Saeed Piracha, Muhammad Nawaz,

Shahrukh Jamal, Rehman Aziz Chan, Nasira Taskeen, Sheikh Muhammad Ibrahim and Mian Abdul Razzak were also present on the occasion.

As per MoU, the chambers would evolve a uniQied strategy on the issues of common interest, share and exchange all trade-related data with each other for increasing competitiveness of goods and reducing cost of doing business. The Lahore Camber of Commerce and Industry, Rahimyar Khan and Gujrat Chambers of Commerce & Industryu will cooperate in preparation of proposals for Excise and Taxation matters, budgetary recommendations and other national policies. The Chambers would conduct joint research studies to strengthen industries in their respective areas. Speaking on the occasion, the LCCI President Ab-

dul Basit said that at this point in time the MoU between the Chambers is of special signiQicance and it would help solve the issues being faced by the business community. He said that the LCCI, RYK and Gujrat CCIs could contribute a lot in the further development of mutual trust and understanding of problems relating to trade and industry located in Lahore, Rahimyar Khan and Gujrat. He said that a collective stand to safeguard the interest of business community is need of the hour. Abdul Basit said that branding and innovative approach hold the key to success for businesses that want to go global. He said that the Lahore Chamber of Commerce and Industry would extend every possible help to RYK and Gujrat Chambers of Commerce and Industry.

stressed that ICCI should play role in early promulgation of new rent law to resolve traders’ rent disputes in an amicable manner. He also assured that TWA, G-11 Markaz would extend its full cooperation and support to ICCI in efforts aimed at facilitating the growth of business activities.

Ringgit lower against uS dollar in early trade he ringgit was lower against the US dollar in the early session today on lack of buying momentum, said a dealer. At 9.12am, the ringgit was traded at 4.4320/4370 against the US dollar, compared with 4.4280/4310 recorded yesterday. The market resumed trading today after being closed yesterday for the Federal Territory holiday. The ringgit also traded lower against a basket of major currencies. It declined against the British pound to 5.6153/6261 from Tuesday’s 5.4965/5020 and fell against the euro to 4.7764/7840 from 4.7415/7460. The local unit eased against the Singapore dollar to 3.1381/1439 from 3.1212/1244 and went down against the yen to 3.9204/9259 from 3.8897/8930. –CB Report

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Faisalabad customs confiscates goods worth Rs10.43m in third week of Jan Saturday February 4, 2017

National fTo hears case filed by m/s Jeway median Steel against RTo Sialkot LAHORE

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FAISALABAD: The Customs Intelligence and Investigation confiscated goods worth Rs10.43 million involving duty and taxes of Rs4.39 million during third week of January of financial year FY2016-17.

According to details, the customs under supervision of Rubab Sikandar, conducted various raids to foil smuggling attempts and registered cases smuggling were against suspects.

Sources said that the customs intelligence seized a huge quantity of goods worth Rs2.38 million involving duty and taxes of Rs1.37 million.

‘Success of institution depends on quality of human resource' T

LAHORE

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he Federal Tax Ombudsman (FTO) has adjourned the hearing of a case filed by M/s Jeway Median Steel Furnace, Daska against the Regional Tax Office (RTO), Sialkot, until the next hearing. According to details, FTO Advisor Tariq Yousaf heard the case in which counsel for the appellant argued that the RTO had failed to release the sales tax refund of the last two years claimed by the company. He said the RTO collecting excessive tax from M/s Jeway Median Steel Furnace, Daska for the last two years. He approached the commissioner concerned many times for issuance of refunds but the RTO officials did not pay refunds even after the passage of reasonable time. At the end, the company decided to approach the FTO seeking interference in this case. The counsel appealed the FTO advisor to direct the RTO to clear refund claims.

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collector Adjudication Raja Tahir hears 3 cases he Collector Customs Adjudication Raja Tahir Majeed heard three different smuggling cases worth Rs15,025,808. These cases were forwarded by Anti Smuggling Organization (ASO) Mianwali, MCC Bond section, and Customs Intelligence and Investigation Faisalabad. Sources told to Customs Today that the collector hears case against suspects involved in smuggling of used Toyota Land Cruiser V-8, Toyota Prado, and duty free input material. As per details, Raja Tahir Majeed heard case of Muhammad Sarfraz who is involved in evading tax worth Rs4,000,000 as the accused has brought non duty paid Toyota Land Cruiser (Prado) into the country without paying customs duty. –Naeem Sheikh

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he Directorate General of Training and Research Director Saima Shahzad has said that the success of any institution depends largely on the quality of its human resource. In her message on the occasion of International Customs Day she said that the Directorate General of Training and Research (Customs) has set a goal of training and improving the quality of our manpower by providing the best training environment based on technically most modern capacity building training programs and facilities. This years’ Customs Day has been dedicated to promoting data analysis under the slogan “Data Analysis for Effective Border Management.

fBR earns Rs330m under amnesty scheme A

ISLAMABAD

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fter the launch of amnesty scheme for real estate sector, the Federal Board of Revenue has collected Rs330million under Section 236w (Advance Tax on Property) from 13,500 transactions in just less than two months, 7th of December 2016 to up to 31st of January 2017.

According to details, in December 2016, 4,319 transactions were made, and the FBR received Rs94million under the head of Advance Tax. By January 2017, 9, about 181 transactions were made, and the FBR collected revenue of Rs321million. So the FBR’s policy to bring the real estate sector in the tax-net has been successful. It is pertinent to mention here that this tax is being collected on the difference between the revised FBR valuation rate and the district commissioners’ (DC) rate under the scheme. The tax collected under the Section 236w is not adjustable. As a result

of transactions, Rs11.2 billion black money of real estate sector has been converted into white money. The Federal Board of Revenue is expecting to collect Rs40billion revenue by this

amnesty scheme. According to an FBR estimate, around Rs4000billion is evaded in the property sector each year. It is also important to mention here that this scheme is available for an unspecified pe-

riod. People, whitening the money in the real estate sector, will not be asked to mention their source of income but next year taxpayer will have to pay income tax on this amount as per law.

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DG Valuation issues reference values for Energy Drink Code Red Brand KARACHI: The Directorate General of Customs Valuation issued the reference values for Energy Drink Code Red Brand.

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

During the scrutiny of previous clearance data, the directorate observed that Carbonated Energy Drink (Code Red Brand) falling under PCT headings 2202.1010 are being assessed at different values and certain transactions are on very low side.

Shc issues notice to m/s Barbar Soap works for recovery of Rs4,507,202 KARACHI

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he Sindh High Court (SHC) issued pre-admission notice to M/s Barbar Soap Works Private Limited on an appeal filed by Commissioner Inland Revenue, Zone-II Regional Tax Office Karachi challenging the impugned order of the appellate tribunal in respect of recovery of Rs 4,507, 202.

A two-member bench, headed by Justice Aqeel Ahmed Abbasi was hearing the appeal, court also fixed the hearing for fourth week of February 2017.

Earlier, counsel for the applicant stated that respondent is engaged in the manufacturing and supply of laundry

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soap, during the examination of record, deputy commissioner Inland Revenue E&C Unit-5, Zone-II Regional Tax Office Karachi observed that during the tax period from July 2011 to June 2013, the registered person has adjusted 100% input tax instead of permissible limit of 90% and thus the registered person was alleged to have contravened the provision of section 8B (1) of the Sales Tax Act. 1990. According to the applicant, officials of the tax department issued a show cause notice to the respondent dated 27/01/2014 under section of the sales tax act, 1990 to the tune of Rs 4,507,202, however, respondent filed an appeal before commissioner Inland Revenue (Appeals-III) which was dismissed, therefore, respondent filed another appeal before Appellate Tribunal Inland Revenue Karachi which was allowed. Citing M/s Barbar Soap Works Private Limited as respondent, applicant pleaded the court may set aside impugned order of the appellate tribunal.

National

whT Zone of RTo-II focusing on increased strength of agents, tax-net: Ac Amir T

LAHORE

muhAmmAD nAwAZ www.customsbulletin.com

he Withholding Zone of Regional Tax OfQice-II (RTO-II) is putting more focus on increased strength of withholding agents as well as tax-net for more contribution to the national economy. This was stated by RTO-II Assistant Commissioner Amir Yasin, Withholding Zone, during an exclusive interview with Customs Today.

Talking about the jurisdictions, Amir said he collects taxes from builders, developers, contractors and consultants from Lahore. The total taxpayers’ strength is 11,500 in which 550 are withholding agents from whom he collects taxes.

He said that, after the separation of corporate and non-corporate taxpayers, the Regional Tax OfQice-II (RTO-II) has updated a list of withholding agents and educated the withholding agents about the newly introduced properties ordinance implemented by the government in the Financial Year 2016.

Talking about the laws, Amir said he collects taxes under the Section 153, 155 and 149 of the Income Tax Ordinance-2001 and he also applies

Section 231(A) to cash withdrawal and Section 151 to the withdrawal cases from the National Savings, Muslim Commercial Bank (MCB), Allied Bank Limited (ABL), Bank of Punjab (BOP) and Soneri Bank. ‘’RTO-II Withholding Zone also collects taxes under Section 236 (A) on auctions in the Lahore Development Authority (LDA) and the departments of provincial government”, he

Saturday February 4, 2017

further said. Adding more, he collects taxes from builders and developers under the Section 7 (A) 7 (B). Amir told Customs Today that he keeps in contact with the WHT agents every time and he also conducts Qield audit of the General Post OfQice (GPO) and other government institutions. He said that, after the separation of corporate and non-corporate taxpayers, the tax net has expanded.

pcA summons m/s m.n. Enterprises due to duty, tax evasion of Rs 5,147,430 LAHORE

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irectorate of Post Clarence Audit (PCA) has summoned M/s M.N. Enterprises due to company’s involvement in duty and tax evasion of Rs 5,147,430 on the import of tarpaulin.

According to the details, the PCA Lahore observed that the import clearances data against HS code 6306.1210 effected from various Model Customs Collectorates 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 specifically excluded from that ambit of said SRO and hence was not entitled for such benefit 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 Rs5,147,430 sales tax, additional sales tax and income tax due to wrongful, concession under the SRO I 125(D/2011 dated 31.12.2011.

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gujranwala customs seizes Iranian black-tea

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SIALKOT

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he Customs Intelligence and Investigation Department, Gujranwala Region, conQiscated smuggled Iranian black-tea worth Rs100000 which was recovered from a van during an action on Grand Trunk (GT) Road at Kamokey check-post. According to details, Customs Deputy Director Customs Intelligence and Investigation Department Ali Zeb Khan directed Superintendent Tahir RaQique to take stern actions against smuggled goods and vehicles under the antismuggling campaign launched by

the Federal Board of Revenue (FBR).

The said superintendent ordered Deputy Superintendent Muhammad Sarwar to constitute a team for impounding smuggled vehicles and other items. The deputy superintendent and his team, comprising Intelligence OfQicer Mian Muhammad Yousaf, Constables Asad Raza, Mubashir, Boota, Mubashir and others, started checking vehicles and intercepted a van bearing registration No: RIP-1255-06 which was coming from Rawalpindi to Lahore.

The team recovered packets of black-tea from the van. The team also asked Driver Asghar to show documents regarding the legal import but he failed. The team regis-

tered a case under the Customs Act1969 against the accused.

The department will also issue a legal notice to van stand manager as he loaded smuggled tea without import documents while driver was released along with vehicle after a proper interrogation.

The case has been sent to the Customs Adjudication for legal action. Superintendent Sajjad Rubbani said the anti-smuggling campaign is getting better in the Gujranwala Region day-by-day.

Meanwhile, The Customs AntiSmuggling Organisation (ASO), Mianwali, has seized smuggled items worth Rs378000 involving customs duty and taxes amounting to

Rs71769 under of the Customs Act-1969.

According to Customs Today, Additional Collector (ADC) Muhammad Saeed Asad received a tip-off regarding the smuggling attempt on which he formed a team, comprising Superintendent Chaudhary Sardar Muhammad, Muhammad Umar Bhatti, Azhar Hussain Jafari, Driver Riasat Hussain, Sepoys Muhammad Ashraf, Faiz Ahmad, Riaz Ahmad and Muhammad Yousaf.

The team intercepted a trailer with registration No: TLE-765 near Wan Buchran, district Mianwali, which was driven by Malik Dad son of Sher Muhammad, a resident of tehsil and district Khushab.

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Iran’s exports to Indonesia up 62% Saturday February 4, 2017

World

TEHRAN: Iran’s exports to Indonesia in the first nine months of the current Iranian year (started March 20, 2016) grew by 62% compared with the similar period of last year to reach $100 million, according to Iran’s commercial attache to Indonesia, Anvar Kamari, who cited Islamic Republic of Iran Customs Administration’s statistics.

“Iran’s bitumen exports to Indonesia stood at 82,000 tons worth $19.6 million, which indicate a decline of 19% in terms of weight and 53% in value over last year’s corresponding period,” he added. Iran’s main exports to the Southeast Asian country included steel, lead, sulfur, gypsum, bitumen and dates, Kamari was quoted as saying by IRNA.

SARS customs seizes counterfeit Royal Dutch Shell sells 10 north Sea holdings for £3b sneakers worth Rs 8 million AMSTERDAM

CAPE TOWN

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ARS Customs made a massive seizure of suspected counterfeit sneakers to the

Thai Dec factory output up 0.54pc hailand’s industrial output rose for a second straight month in December, boosted by stronger demand for steel, electronics, rubber and jewellery, but the gain was still small, suggesting the economic recovery remains fragile. The Industry Ministry said on Tuesday its manufacturing production index (MPI) in December was up 0.54 percent from a year earlier. A Reuters poll forecast a rise of 2.50 percent. In November, output rose a revised 3.88 percent from a year earlier.Industrial goods accounted for around 80 percent of total exports, which rose 6.2 percent in December from a year earlier after November’s 10.2 percent jump. Recent improved exports are good news for the trade-dependent economy, which has struggled to grow in the face of weak global and domestic demand. Shipments are worth about two-thirds of Thailand’s gross domestic product (GDP). –CB Report

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value of R8,7 million at Lebombo border post early on Monday morning. A total of 9085 pairs of ‘Adidas’branded sneakers and 1850 pairs of ‘Nike’-branded sneakers were discovered in a white truck entering South Africa. The truck driver ignored requests from Customs ofQicials to stop at the port check point.

Customs ofQicials identiQied the truck as having been detained in July this year with a consignment of clothing. SARS Customs and South African Police Service (SAPS) ofQicials pursued the vehicle and stopped it outside the port area.

The male driver Qled on foot. No arrests were made as yet. The truck was escorted to the State warehouse where the consignment was detained for counting of sneakers.

Brand holders within South Africa will be required to do an authentication process.

Contravention of the Customs & Excise Act, Counterfeit Act and Criminal Procedures Act is being investigated. SARS expressed its gratitude to Customs staff deployed at the respective ports of entry during the festive period as well as other law enforcement agencies.

‘Customs ofQicials are amongst the staff that are on duty throughout the December holiday period and they are required to remain vigilant and committed at all times.

Deutsche Bank fined £502m over Russia money laundering claims

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eutsche Bank has been slapped with two major Qines in the US and the UK, for alleged moneylaundering crimes in Russia -another body blow to Germany’s largest lender, which has over the last year been plagued by major investigations and massive Qines dating back to before the Qinancial crisis. The investigation found that Deutsche Bank had illegally moved $10bn out of Russia using so called-mirror trades sold through the bank’s Moscow, London

and New York ofQices, according to Reuters. The New York State Department of Financial Services (DFS), a state bank regulator, said that Germany’s biggest bank would pay it $425m (£339m), while the UK’s Financial Conduct Authority (FCA) said on Tuesday morning that it had Qined the bank £163m ($204m), the largest Qine of its kind in the UK, for “failing to maintain an adequate anti-money laundering (AML) control framework, the agency reported. –CB Report

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oyal Dutch Shell (LSE: 0LN9.L – news) is to ofQload its holdings in 10 North Sea oil Qields in a move worth up to £3bn. The FTSE 100 energy Qirm’s latest divestment since its takeover of BG last year would mean its interests in Buzzard, Beryl, Bressay, Elgin-Franklin, J-Block, the Greater Armada cluster, Everest, Lomond and Erskine transferring to smaller rival Chrysaor.

Its 10% stake in Schiehallion is also included. The Qields account for output of 115,000 barrels per day for Shell. The Qirm said it expected the 400 workers affected would transfer to Chrysaor under the agreement, which remained subject to several approvals including regulatory scrutiny.

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ments, which Shell said would result in a Qinancial gain for the company, Chrysaor would pay an initial £2.4bn followed by top-up sums linked to energy prices and potential future discoveries. It insisted its North Sea interests would remain “signiQicant”, with a “strengthened presence” after the deal completes.

It pointed to production from the Schiehallion redevelopment and Clair Ridge project expected to come on stream at a time when energy prices have recovered following over two years in the doldrums. The weak price environment largely caused by demand failing to match high output – saw a barrel of Brent crude touch lows below $30 a year ago. It has recovered to $55 today – still over 50% down on 2014 prices – a result of the OPEC cartel of oilproducing nations cutting output.

The weak price environment led to thousands of North Sea job losses as Qirms downsized their operations.

Shell has not been immune from seeking cost-savings.

china to boost economy nce a successful real estate developer, Li Fangping has shifted to high-end manufacturing by setting up a medical device company.

“I saw signs of a possible bubble in the property market and made up my mind to enter the more down-to-earth manufacturing sector,” he said. Li’s company, Nurotron Biotechnology, is the only one in China capable of independently developing cochlear implant systems. So far some 6000 people have been implanted with Li’s products. Behind the company’s good performance is Li’s devotion to scientiQic innovation. The company has employed top talent from abroad and in-

vested some 25 million yuan ($US3.6 million) in technological research and development every year. From real estate to the real economy, Li has followed the country’s strategy to boost the real economy, which has been plagued by rising labour costs and low investment returns compared to the Qinancial and property sectors. The country has adopted a set of measures, such as reducing overcapacity, streamlining administrative approvals and boosting innovation to stimulate the real economy. Reviving the real economy was also stressed during the annual Central Economic Work Conference in December 2016. –CB Report

Saudi public Investment fund to be world leader

T RIYADH

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he publically owned Saudi Public Investment Fund is looking set to become one of the world’s most powerful sovereign funds after a sudden burst deal making, UK daily the Financial Times has reported. The previously little known and generally

inactive holding fund PIF will likely reap the beneQits when Saudi completes the initial public sale of Aramco, which is due next year. It is expected the initial Qive percent Qloatation of Saudi Aramco will raise $100 bln. At the recent World Economic Forum PIF chief executive Yasir al-Rumayyan was seen attending a packed schedule of meetings with executives from private equity groups BlackRock and Black-

stone the report added. Last year saw PIF turn around with investments such as the $3.5 bln with Uber, which came after an agreement was reached to invest $45 bln in a partnership with Japan’s SoftBank to launch a new $100bn technology fund. Estimates by one banker suggest PIF’s assets could increase from $190 bln to $500 bln – and that’s before Aramco’s IPO. The expected expansion has seen invest-

ment in extra staff, not least young Saudi professionals. “They are mainly western educated very ambitious, hungry people,” one banker who has worked with PIF told the newspaper. It’s all part of the ripple effect from Saudi’s Deputy Crown Prince Mohammed Bin Salman, who has been tasked with leading the kingdom in its efforts to diversify its oil reliant economy.

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SK imports fresh eggs from Spain for 1st time SEJONG: The Ministry of Agriculture, Food and Rural Affairs said that some 36hundred eggs weighing 200 kilograms arrived from Spain in South Korea on Wednesday afternoon as part of efforts to ease the egg shortage due to the bird flu outbreak. The ministry explained that like South Korean eggs, the Spanish eggs have brown shells. The eggs are expected to hit shelves after the Lunar New Year holidays, which will end next Monday, given that it takes up to eight days for inspection and sanitary tests to be completed.

A ministry official said the government currently has no plans to import more eggs from other countries.

Saudi banks likely to outperform gcc counterparts espite challenges, with a return on assets of 1.9 percent as of year-end 2016 (versus 2 percent in 2015), Saudi banks’ profitability are expected to continue to outperform other Gulf Cooperation Council (GCC) banking systems, said a report issued

by Moody’s Investor Service. In 2016, Saudi banks reported a 5.4 percent year-on-year decrease in net profits, mainly because of rising provisioning charges, a credit negative. The provisioning increase reflects asset quality challenges amid low oil prices.

Keeping in view the 2016 results, Moody’s expect that Saudi banks’ profits will remain challenged in 2017 amid an increasing cost of risk and subdued credit growth that, despite easing funding costs, will negatively affect top-line revenues. An 8.7 percent year-on-year increase in net interest income confirms that banks boosted gross margins during the year to absorb the increased cost of funding that occurred in the first half of 2016. –CB Report

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customs, excise officials protest against gST wo days before presentation of the Union Budget in the Parliament, officials of the Customs, Central Excise and Service Tax Departments today protested against the Goods and Service Tax alleging that decisions taken by the GST council were discriminatory. Officials under the Central Board of Excise and Customs (CBEC) at Attari Integrated Check Post (ICP) and the Customs and Excise Department here wore black bands to mark today’s Martyrdom Day of the Father of Nation Mahatma Gandhi as black day. They alleged that the Centre government had ignored interests of the department while taking certain decisions. Custom officials preferring not to be named said around 70,000 staff of the department across the country. –CB Report

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World Customs

Jamaican man indicted in lax cocaine smuggling case

LOS ANGELES

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Jamaican man was indicted by a federal grand jury for allegedly giving nearly 60 pounds of cocaine to a JetBlue Qlight attendant who tried to smuggle the narcotics onto a plane at LAX last March, the U.S. Attorney’s OfQice announced Friday.

Gaston Brown, 39, is already serving federal prison time in Florida for illegally re-entering the country after being deported. He allegedly provided cocaine to Marsha Gay Reynolds, who pleaded guilty

to a federal charge in December and is awaiting sentencing.

Brown, was charged Thursday with one count of conspiracy to possess with intent to distribute cocaine, and one count of possession with intent to distribute cocaine.

A judge issued a writ directing that Brown be brought to Los Angeles for an arraignment, which will likely be in mid-February, according to the U.S. Attorney’s OfQice.

Reynolds, 32, admitted trying to smuggle nearly 60 pounds of cocaine worth up to $3 million in her carry-on luggage, then Qled when pulled aside for a random baggage search at LAX. She pleaded guilty to a single count of conspiracy to possess with intent to distribute co-

caine. Sentencing is scheduled for March 13 on the felony charge, which is punishable by a 10-year mandatory minimum prison term.

“This case demonstrates law enforcement’s commitment to disrupting dangerous drug trafQicking networks,” said Eileen M. Decker, the U.S. attorney in Los Angeles.

“After making the large seizure of narcotics at LAX, investigators continued to look into this matter, which resulted in the indictment of a defendant who was trafQicking a significant amount of cocaine,” she said. If Brown is convicted of the drug trafQicking charges, he would face a mandatory minimum sentence of 10 years in federal prison and a maximum possible sentence of life.

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Brexit may Lead to customs Delays at uk ports rime Minister Theresa May has promised a “swift and clean” Brexit, and as part of that process she intends to pull Britain out of the EU’s single market and customs union.

The customs union provides for a uniform series of tariffs on the import of foreign goods, and it prohibits member states from charging tariffs for cross-border movements within the EU. May has said that she desires some form of free trade with Europe and that the UK will renegotiate its customs arrangements as part of the exit process, but observers suggest that these discussions could take years. In the interim, the FTA says, the UK’s customs authorities need to prepare for a wave of additional clearances. At present, UK customs waves goods from the EU through without significant checks, but once May carries out her Brexit promise, the customs system will have to be scaled up to handle up to an additional 300 million import declarations per year. The additional checks could lead to delays of up to four days in port, FTA officials told Parliament, unless UK customs hires thousands of additional staff. In addition, FTA says, British forwarders and shippers will need time to familiarize themselves with EU declarations for exports to continental Europe, which they have not had to deal with for a generation. Most of all, FTA urged Parliament to avoid any “cliff edge” of abrupt change. –CB Report

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Smuggled commodities have crippled Iran’s economy

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TEHRAN

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overnment institutions in Iran have destroyed domestic production through the excessive import of goods, and many workers have lost their jobs. Economic experts in Iran place the imported goods at an amount of one billion dollars, and have destroyed more than 100,000 jobs. This “institutionalized smuggling” leads to the closure of factories and the rise

of unemployment. On Monday, January. The National Council of Resistance of Iran reported that some authorities were interviewed by Ofogh TV, affiliated with the regime.

They each acknowledged to the devastating impact of importation.The head of Iran’s Central Task Force to Combat the Smuggling of Commodities and Currency admitted to an increase in the smuggling of commodities in recent years. The commodities have high figures in foreign trade.

Smuggling has destroyed do-

mestic production in a way that both producers and consumers have been harmed. The Vice President of Iran-China Chamber of Commerce admits that large-scale trafQicking, “is the result of our opaque economy. As long as there is no transparency and competition in our economy, we will have the issues such as smuggling commodities, embezzlement or other economic corruptions.” Mohammad Hossein Barkhordar was also interviewed. He acknowledged that the agents of the regime are involved

in economic corruption, smuggling, and bribery. He stated that there are some rentiers, who live well on income from these illicit investments, and are connected to both sides of left and right. Some of them receive economic medals, as well.

They are experts in the leverage of the law. The Head of the Food and Drug Administration of the Ministry of Health and Medical Education said that Customs in Iran is itself the entry for the contraband. According to Fars News Agency November 23rd 2016.

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FIA apprehends two human smugglers Saturday February 4, 2017

Lahore

LAHORE: Federal Investigation Agency (FIA), Anti Human Trafficking Cell (AHTC) here Tuesday arrested two human smugglers and recovered one million rupees, fake visa and other documents from their possession.

FIA officials briefed that a special team of AHTC conducted a raid and arrested accused Mirza Amjad Baig resident of Lahore who extorted Rs one million from innocent citizens for sending them to Russia and Malaysia.

The team also arrested accused Muhammad Shahzad resident of Gujrat on giving bogus visa of South Africa.

pcA summons m/s numan Enterprises in tax evasion case

Lhc disposes of pcSIR’s appeal against property tax notice of Rs 25m

LAHORE

LAHORE

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muhAmmAD nAwAZ www.customsbulletin.com

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he Lahore High Court (LHC) has disposed of an application Qiled by the Pakistan Council of ScientiQic and Industrial Research (PCSIR), challenging property tax notice of Rs 25 million issued by Excise and Taxation Department. The court ordered the petitioner to contact the relevant ofQicer of the department.

Before the court the counsel of appellant argued that Pakistan Council of ScientiQic and Industrial Research is the Federal Government institution and Punjab Government cannot impose taxes on that. Adding more beside the federal institution excise department has sent notice to the appellant. He prayed before

customs central Region collects Rs2782m sales tax in 15 days of Jan ustoms Central Region has collected Rs2782 million under the head of sales tax during the first fifteen days of January 2016-17.

As per details the Customs Appraisement Lahore collected Rs1149 million during the first 15 days of the period under review. Similarly, Customs Preventive Lahore collected Rs717 million under the head of sales tax during the period under review. The Collectorate of Multan collected Rs658 million as sales tax during the month of January of current financial year 2016-17. The Collectorate of Customs Faisalabad collected Rs256 million as sales tax during the first fifteen days of financial year 2016-17. Overall the Central Region collected total sales tax from all the four Collectrates worth Rs2782 million during the first fifteen day of the month of January.–M Hayat

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the court that he may order to null and void the 25 property tax notice on the appellant.

On the other side, assistant advocate general Punjab Anwar Hussain appear before the court and argued that property tax cannot be challenged before the LHC directly.

The district excise officer is only the authority where property tax can be challenged. He added that the PCSIR should file the appeal before the department. After hearing the arguments from both sides, the LHC disposed of the appeal and ordered the appellant to file appeal at the relevant forum.

Meanwhile, Lahore High Court (LHC) seeks reply from the Federal Board of Revenue (FBR) in case of sales tax collection from steel industry through electricity bills.

Court also stopped the sales tax collection from steel industry through electricity bills.

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he Directorate of Post Clearance Audit (PCA) has summoned M/s Numan Enterprises in duty and tax evasion of Rs1.5million on the import of tarpaulin. The PCA Lahore observed that the import clearances’ data against HS Code 6306.1210, carried out from various model customs collectorates 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 was wrongfully availed on the import of Tarpaulin i.e. sun shedding which is speciQically excluded from that ambit of said SRO and hence was not entitled to such beneQit under the said SRO. It has been observed that im-

fTo hears case filed by mohid Industries against RTo Lahore

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he Federal Tax Ombudsman (FTO) has postponed the hearing of a case Qiled by Proprietor Mohid Industries against the Regional Tax OfQice, (RTO) Lahore until the next date.

FTO Advisor Mazhar Farooq Shirazi heard the case Qiled by proprietor Mohid Industries. The counsel for the appellant argued that the RTO had failed to release the sales tax refund to the appellant for the last two years. He said that RTO collected excessive tax from the com-

pany during the last two years. The petitioner approached the ofQicials concerned several times for issuance of the refunds, but the RTO ofQicials failed to clear the refunds after the passage of a reasonable time. Finally, the appellant decided to approach the FTO seeking interference in this case. The counsel appealed the FTO advisor to direct the RTO to clear the refund claims. The counsel further said that the delay in issuance of refunds put burden on the taxpayers. –Muhammad Nawaz

porter had imported various consignments 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 underpaid an amount of Rs1.5million Sales Tax, Additional Sales Tax and Income Tax due to wrongful concession under the SRO I 125(D/2011 dated

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31.12.2011. The importer was asked to pay abovementioned underpaid amount of duty/taxes within 10 days of receipt of this letter positively. The importer was told that in case they do not agree to the audit observation; they may provide a written clariQication along with supporting documents as well as import documents i.e. copies of Goods Declaration.

cAT adjourns hearing of 11 cases ustoms Appellate Tribunal bench-II comprising Judicial Member Omer Arshad Hakeem and Technical Member Imran Tariq heard 11 cases on Tuesday and adjourned all of them until the next hearing. The tribunal heard 11 cases, including Directorate of Intelligence and Investigation Lahore versus Shaukat Ali, Amir Muhammad Khan versus Directorate of Intelligence and Investigation Lahore, Customs Lahore versus Muhammad Naeem, Muhammad Afzal versus Directorate of Intelligence and Investigation Faisalabad, Abdul Razzaq versus Directorate of Intelligence and Investigation Gujrat. On Wednes-

day, Customs Appellate Tribunal heard cases, including Muhammad Ayoub versus Directorate of Intelligence and Investigation Lahore, Rao Muhammad Aslam versus Directorate of Intelligence and Investigation Multan, Rana Shaukat versus Directorate of Intelligence and Investigation Lahore. Furthermore, the tribunal heard the cases of Rehmat Ullah versus Directorate of Intelligence and Investigation Lahore, Cress Pak International versus customs Lahore, Ishtiaqe Ahmed versus Directorate of Intelligence and Investigation Multan and Zulafqar Pathan versus Directorate of Intelligence, Investigation Lahore. –Muhammad Nawaz

court issues non-bailable warrants of two customs officials

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LAHORE

m ImRAn mEhAR

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he National Accountability Bauer Court has issued nonbail-able arrest warrants of two Customs ofQicers on Thursday.

According to details available to Customs Today that two ofQicials appointed at Wagha Land Freight Unit

were allegedly involved in misconduct and taking bribe from importers of pan leaves. Sources said that both of the ofQicers have made huge loss to the national kitty in the wake of taxes and duties evasion by taking bribery.

NAB consul told the court that customs ofQicials were unfair to their duties. They were also absent from the court even receiving many

summons from the court so now the court has issued non-bail-able warrants of both of them.

Meanwhile, The Customs Court has extended judicial remand of the accused allegedly involved in smuggling of gold, diamond and precious watches, for another 14 days.

Earlier, the court had sent the accused to jail in on a 14-day judicial remand. Customs Investigation and

Prosecution team of Customs Preventives had presented an investigation challan against the couple.

As per the detail, customs authorities at Lahore airport recovered smuggled diamonds, 2.5kg gold and eight watches of Rado brand worth Rs15 million from passengers, Rana Muhammad Rafique who was travelling from Sharjah to Lahore.

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State ports authority will look into best use of Georgetown port GEORGETOWN: The South Carolina Ports Authority has entered into an agreement with those involved in a land study to decide the best use of the area that houses the Port of Georgetown. Clint Eisenhauer, senior vice president of external affairs for the SCPA, said it is good for the authority to participate in an Urban Land Institute study to figure out how the real estate would best benefit the region. He added the authority continues to operate the Georgetown port and there is nothing in the agreement or conversations that calls for its closure at this time. However, the SCPA is open to closing the port if doing so benefits the area, benefits the study or benefits redevelopment, according to Eisenhauer.

Estonian port of Tallinn’s profit grows 22.5pc in 2016 he state-owned Estonian port company Port of Tallinn saw its revenue grow 11% to 110.9 mln euros and profit soar 22.5% to 49.5 mln euros last year. Revenues of the Port of Tallinn group grew in 2016 above all thanks to the addition of ferry traffic as a new service and record-setting international passenger carriage results, chairman of the supervisory board Aare Tark said. Despite a very complicated year and the launch of an entirely new business, the company was able to increase its profitability, he remarked. The results were also affected by freight flows. While the volumes of container goods, ro-ro

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goods, bulk and mixed cargoes grew, the flows of the port’s largest group of commodities – liquid cargoes – declined. Meanwhile, Total barge tonnage for the Tulsa Port of Catoosa for 2016 was 2,259,346, pushing the cumulative total of tons since the Port opened in 1971 to 79.97 million tons. This means that in the first few weeks of 2017, the Port will reach the milestone of 80 million total tons shipped. This capstone achievement ends a year that also saw the Port move and expand its Maritime Education Center and complete a $12 million renovation to its main dock and bridge crane. In December 2016, the total barge tonnage for the Tulsa Port of Catoosa was 243,260 tons, which marks a 65 percent increase over usage from the same period last year. In addition, total barge tonnage for the entirety of 2016 was 2,259,346 tons, a 46 percent increase over 2015. –CB Report

Ports & Shipping

chabahar port phase-1 to come on stream soon

South carolina ports Authority container volume climbs 5% outh Carolina Ports Authority reported a 5.4 percent increase in twenty-foot equivalent unit (TEU) volume fiscal year to date, with 1,029,450 TEUs handled since the period began in July. December was a solid finish to the second quarter of fiscal year 2017, with 164,480 TEUs moved last month, a year-over-year increase of nearly 14 percent. As measured in pier containers, or total box volume, SCPA handled 92,956 boxes last month, up 12.8 percent compared to the same month last year. Fiscal year to date pier container volume is up 5.4 percent, with 580,880 boxes moved at its North Charleston and Wando Welch container terminals. “The port is experiencing an all-time high container volume, with loaded imports and exports achieving over 7 percent growth,” said Jim Newsome, SCPA President and CEO. “Looking ahead to the second half of our 2017 fiscal year, we remain cautiously optimistic as we continue to prepare for the deployment of 14,000 TEU ships and improve our existing infrastructure. –CB Report

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TEHRAN

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MO head, while stressing signiQicance of renovation in the country’s naval Qleet, said Phase one of Chabahr port will become operational in three months. Addressing the 14th Trans Middle East 2017 Exhibition and Conference, Mohammad Saeidnejad said the government would undertake procurement for the maritime sector while hinterland development and relevant Qinancing had to be done by the private sector. He underlined that partnership of giant and credible international Qirms in development of Iranian ports could form an appropriate market in the Qield; “as such, Iran’s Ports and Maritime Organization (PMO) would welcome participation of foreign investors in tenders for construction of phases one and two of Shahid Rajaee Port Complex.” “One main axis of the Sixth National Development Plan marks promotion of technology as well as transformation and

Saturday February 4, 2017

modernization of the country’s naval Qleet,” he continued. Saeidnejad noted that great measures had been taken for supply of equipment and expansion of ports as evidenced by arrival of some purchased equipment on Monday.

The ofQicial highlighted that PMO intended to attract foreign investors to northern ports in addition to southern ones since the Caspian Sea could also play an important role in goods transit and promotion of the country’s trade for its proximity to Qive neighboring countries. PMO

managing director expressed hope that in addition to signing joint agreements with the Qive northern countries, bilateral and international alliances will be also formed.

Later into his speech, Mohammad Saeidnejad pointed to importance of safety promotion adding “PMO maintains compliance to international conventions while also paying due attention to rights of coastal citizens.” “Sanction years took away numerous opportunities to attract foreign investment for development and procurement of ports.

port of Savannah reports busiest Dec on record T

WASHINGTON

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he Port of Savannah is reporting its busiest December ever.

The record-breaking number is thanks to a 12-percent jump in containerized cargo volume. According to the GPA, Savannah handled close to 300,000 container units of exports and imports last month – an increase of 30,000 units from the previous December. Executives say some factors leading to the growth include direct interstate access and proximity to major population and manufacturing sites.

“The real exciting piece of that news is that typically, after Thanksgiving, this business just goes into a lull and our peak season is over. To date, we still have not seen a peak decline and we’ve been on a peak through November; through December and January seems to be as strong,” said

Griff Lynch, Executive Director, GPA. More GPA growth in December included breaking ground on a new inland terminal in Northwest Georgia. Construction on that is expected to take just under two years.

Meanwhile, Indonesia is taking several new measures to improve the economics and efQiciency of its maritime logistics sector. Jakarta is implementing a plan to enable the country’s ports to capture a larger share of transshipment business related to domestic cargo. It is also introducing a series of regulatory changes to support more investment and private sector participation in maritime logistics and reduce cargo dwell times at ports throughout the archipelago. An agreement to jointly develop a new $3 billion deep-sea port with Japan has also been signed. The transport ministry said it is working with the four dominant state-owned port op-

erators on a plan to support the implementation of a hub and spoke system for domestic cargo distribution centered on Tanjung Priok as a primary domestic and international hub port. The “integrated chain port” plan includes development of an information technology management system and changes to regulation that the administration said will help bring home a larger share of transshipment business that originates domestically.

Indonesia has more than 10,000 inhabited islands spread over an area as wide as the United States. Much of the export cargo handled by secondary ports such as Kuala Tanjung in North Sumatra, Bitung in North Sulawesi, Makassar in South Sulawesi, Sorong in West Papua, and Tanjung Perak is currently transshipped via Singapore. An improved maritime logistics management system that can efQiciently integrate and manage

cargo Qlows from different island sources is regarded by the administration of President Joko Widodo as central to bring down logistics costs that the World Bank estimates are around 24 percent of gross domestic product. Indonesia on Jan. 15 signed an agreement with Japan to develop a deep-sea port at Patimban intended to supplement the gateway and transshipment hub functions of Tanjung Priok. The $3 billion facility is being built around 100 kilometers (62 miles) from Jakarta and will eventually have capacity to handle 7.5 million 20-foot-equivalent units annually. The agreement was signed by Japanese Prime Minister Shinzo Abe during his recent visit to Jakarta while on a four-nation tour of Southeast Asia. At the end of 2016, the transport ministry said it would reduce transshipment charges to support the development of the national hub and spoke cargo distribution.

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Sialkot Customs collects Rs17.82m in seven months SIALKOT: The Model Customs Collectorate collected Rs17.82 million in head of customs duty during first seven months (July 2016 to January 25, 2017) of financial year (FY) 2016-17. Reportedly, the MCC has already been surpassed its assigned revenue target for the current financial year which is Rs14.96 million. Deputy Collector Waheed Anwar Abro told Customs Today that the Collectorate is showing outstanding performance and it is due to the tireless and efficient performance of the officials that the Collectorate has already surpassed its assigned revenue target.

Saturday, February 4, 2017

CUSTOMS BULLETIN

Dg customs Valuation Tanveer rejects revision petition of m/s meerab Enterprises KARACHI wAQAR AhmED AnSARI www.customsbulletin.com

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irector General Customs Valuation Syed Tanveer Ahmed has issues Order in Revision No.293/2017 under section 25-D of the Customs Act, 1969 against Valuation Ruling No.938/2016 issued on September 26, 2016. The revision petition was Qiled by M/s Meerab Enterprises and M/s Shahid Brothers.

According to the details, the applicants stated that they were the regular importers and importing consignments containing calcined alumina from worldwide and Qile the GD under PCT heading 2818.2000.

They said that currently the valuation department issued the fresh valuation ruling 938/2016 in place of the old ruling 794/2016, dated 15-01-2016 and the current valuation ruling issued on too much higher side and we are not in a position to accept such higher valuation ruling.

Director General Customs Valuation in his order stated that, hearing in this case was Qixed on 9-01-2017. A commercial importer Muhammad Owais Uddin Sharif appeared on behalf of M/s Shahid Brothers. He stated

that they are importing aluminum oxide and calcined alumina C.A. from India at $ 0.52/kg and S 0.76/kg Korea origin whereas customs values have been determined at US$ 0.87/kg of China origin and US$ 1.10/kg of other

origins. India and Korea both origins fall in other origins category which are on higher side. He said the petitioner requested to determine the customs values downward and Indian origin be clubbed with China. They

further contended that their import quality is in bulk, last L/C is of 88 matric ton (4 containers), therefore, they emphasize reduction of customs values of Korean and Indian imports of aluminum oxide and calcined alu-

mina. The Director General Customs Valuation stated that, I have deliberated on the case record as well as verbal and written arguments put forth by the petitioners and respondent department.

pakistan, Afghanistan urged to remove hurdles in transit trade PESHAWAR

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representative of PakAfghan business community has asked the governments of both the countries to remove hurdles in the Afghan Transit Trade (ATT) in order to strengthen economy in the region.

Senior vice-president of PakAfghan Joint Chamber of Com-

merce and Industries and a leading businessman Zia ul Haq Sarhadi reiterated his demand while addressing a meeting of Pak-Afghan Liaison Committee on Transit Trade here the other day.

The governments of Pakistan and Afghanistan must take concrete steps for the promotion of trade between the two countries and remove bottlenecks in this regard if they want to strengthen their economies through bilateral trade, Sarhadi observed.

Pak-Afghan Liaison Committee Chairman Fayyaz Anwar, Afghan Consulate second Secretary Mo-

hammad Naeem Sarwaray, Transit Trade Additional Director Amjadur Rehman, Customs (Torkham) Additional Collector and executive officer of the Trade Development Authority were also present on the occasion.

Zia ul Haq Sarhadi urged the leadership of both the neighbouring states to set aside their political differences and ensure facilitation of the business communities on both sides of the border. He, However, lamented that lack of interest on part of the governments and some political disputes were affecting both the ATT

and bilateral trade.

He called for convening a meeting to review the new Afghan transit trade agreement as soon as possible adding business could be attracted to Pakistani ports by facilitating the business communities of both the countries. The meeting reviewed the reservations of the businessmen of both Pakistan and Afghanistan on the new transit trade agreement and demanded of their governments to take immediate steps for redressing the same. It decided that all stakeholders, including Pak-Afghan Li-

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aison Committee, PAJCCI and Peshawar-based Afghan Consulate, would send their recommendations for removing reservations of the business community about the Pak-Afghan Transit Trade Agreement to the concerned agencies of their respective governments. For this purpose, they will also make contacts with the commerce ministry and other relevant organizations of both the countries to work out amicable solutions to issues creating hurdles in the smooth business ties between Pakistan and Afghanistan.