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Karachi, Sun February 5, 2017

LAHORE

M HAYAT

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irectorate of Customs Intelligence and Investigation has seized smuggled hardware tools and other accessories worth Rs 30 million from a godown at the Naseerabad College Road. Sources told Customs Today that a team of anti-smuggling team organization, on the directions of Director Intelligence and Investigation Zeba Hai Azhar,

raided the godown and seized non-customs paid hardware items worth Rs 30 million. The items involved duty and taxes evasion of Rs 1.8 million.

The sources said that on information that a trader Kamran Muzafar was stocking the illegally imported items. The sources added that the hardware items seized in the incident, included 388 bundles of grinding disc, 336 bundles of PVC pipe, 50 cartons of measurement tape, 30 cartons of brush cup and welding rods holders.

The sources said that the trader had evaded

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over Rs1.8 million duty and taxes and has hidden the illegal goods in the godown. The sources said that on the directions of the director the customs intelligence and investigation anti-smuggling team has registered a case and started further investigation. The sources said that it was informed to the customs authorities that following the modus operandi a large number of traders have resorted to store illegal hardware items and the customs I&I was after them to discover the other godown to save the national exchequer.

Customs team impounds smuggled hardware items worth Rs 30 million

Debt management vital for economic growth, says Ishaq Dar

Multan Customs collects Rs2698.405 million during January

Customs seize 2.9 tonnes of pangolin scales

Customs surpasses revenue target for the month of January

Customs I&I has seized smuggled hardware tools and other accessories | See pAge 01 |

Dar said that immediate task for the new economic team was the preparation | See pAge 02 |

The MCC Multan missed its revenue collection target for the month of January | See pAge 04 |

Customs oďŹƒcials have seized a total of 2.9 tonnes of pangolin scales | See pAge 07 |

The MCC exceeded the assigned revenue target for the month of January 2017 | See pAge 08 |

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NAB initiates inquiry in health department ISLAMABAD: Gilgit Baltistan Parliamentary Secretary for Health Barkat Jameel said that National Accountability Bureau (NAB) has initiated inquiry into appointments made in health department during 2010,11 and 2013-14. He said that release of salaries to all those employees, who were appointed during the last eight years and their names were mentioned in NAB cases have been stopped, adding that the result of NAB inquiry would make it clear whether the appointments were made on merit or on the basis of nepotism. Barkat Jameel said PML-N always uphold merit and transparency in new appointments and would continue work with same spirit.

Sunday February 5, 2017

Business

Debt management vital for economic growth ISLAMABAD

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inance Minister Senator Ishaq Dar said that immediate task for the new economic team was the preparation of next Niscal year’s budget and meeting the time lines of various ongoing reforms and initiatives. The minister made these remarks while chairing a meeting to review progress on various programmes and activities of the Ministry of Finance. The newly appointed Finance Secretary Tariq Bajwa also participated in the meeting.

Dar felicitated Bajwa on his appointment as Ninance secretary. He said that it was a challenging assign-

cotton production declines in 21 districts MULTAN

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ment and brought with it a signiNicant level of responsibility. He expressed the hope that the new secretary will prove himself equal to the challenge as he brought with himself a vast experience of working in different key positions including

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inister for States and Frontier Regions, Lt GenAbdul Qadir Baloch Friday informed the National Assembly that a sum of Rs80 billion was earmarked aimed at rehabilitating and reconstructing of health, education and other basic facilities in Federal Administrated Tribal Areas (FATA).

Responding to a Calling Attention notice by Qaiser Jamal and others regarding non-inclusion of NA-47 in the

(RRU) for rehabilitation/reconstruction work, the minister said a comprehensive programme was devised for rehabilitation of all those facilities which were damaged during militancy. He said Rehabilitation and Reconstruction Unit (RRU) was simultaneously working across the FATA. Qadir said planning has already been done besides initiating projects in various areas and the whole programme would be completed by 2018. Rejecting the impression that Frontier Regions (FR) were included in the programme, the minister said more allocation was made to FR. He said

LAHORE

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separate amount was allocated for every agency and no discrimination was being carried out with any areas.

However, he said priority was being given to agencies neighboring Afghanistan. Meanwhile, Parliamentary Secretary for Finance and Revenue Rana Muhammad Afzal Khan Wednesday informed the National Assembly that efforts were being made to reduce operational cost on loans of Zarai Taraqiati Bank Limited (ZTBL).

Responding to a Calling Attention notice moved by Rana Muhammad Hayat and others regarding charging of 16.50 per cent.

arious sites have been finalized in Lahore division for industrial zoning by the Lahore Development Authority (LDA), after consultative meetings with Lahore Chamber of Commerce and Industry (LCCI). While appreciating the tireless efforts of the Lahore Development Authority’s team led by LDA Director General Zahid Akhter Zaman, the LCCI President Abdul Basit and Vice President Muhammad Nasir Hameed Khan said that the initiative would lay a new foundation of industrialization in the province and it would attract much needed foreign direct investment in the province. They said the LCCI former Senior Vice President Almas Hyder, the LCCI Additional Secretary Mazhar Elahi and their companions also deserve appreciation for working on this gigantic task. They said that this would be immensely beneficial for the business community as substantial land in the division (Lahore, Kasur, Sheikhupura and Nankana) has been reserved by LDA for the Industrial use where the requisite infrastructure would be provided by the government for the Industry. This step would be proved as a game changer in the economic development of Punjab by formalizing the industrial sector and making it convenient for the investors to open new industrial units on the designated sites.

items registered decrease, while 14 items increased with the remaining 29 items’ prices unchanged. The items, which registered decrease in their prices during the week under review included eggs, gram pulse, masoor pulse, tomatoes, mash pulse, moong pulse, red chilli, gur, sugar and potatoes. The items, which recorded increase in their average prices included petrol, diesel, bananas, onions, LPG cylinder, cigarettes, chicken soap, rice (irri-6), rice (basmati), garlic, wheat,

mustard oil and mutton. The items with no change in their average prices during the week under review includedwheat Nlour, bread, beef, milk (fresh), curd, milk (powdered), cooking oil, vegetable ghee (tin), vegetable ghee (loose) tea (packet), cooked beef, cooked daal, tea (prepared), long cloth, shirting, lawn, georgette, gents sandal, gents chappal, ladies sandal, electricity charges, gas charges, kerosene oil, Nirewood, electric bulb, washing soap, match box and telephone local call.

rs80b allocated for rehabilitation, reconstruction of fATA

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s many as 21 districts of Punjab have witnessed sharp decline in cotton crop production during past two months, a report of Pakistan Cotton Ginners Association revealed The said decline was recorded between 13.83 to 100 percent. Six out of eleven districts of Sindh province have also come across the similar decline that remained between 1.45 to 15.76 percent, added the report. Those districts included as Haidrabad, Mirpur Khas, Sanghar, Jam Shoro, Badin and Ghotki.

Punjab Finance Department secretary, Federal Board of Revenue (FBR) chairman and Economic Affairs Division secretary. He expressed satisfaction with the performance of Finance Division and advised the ofNicials to ensure that various targets

set for the ministry are achieved. Dar also chaired a meeting on matters related to the Debt Policy Coordination OfNice here at the Ministry of Finance.

The minister emphasized the importance of prudent debt management for a growing economy. Referring to his article on Pakistan’s debt, published earlier this week, he said that the purpose of the article was to emphasize that the country is properly managing its debt, and to dispel any notion that the country is at risk with regard to debt obligations in the foreseeable future.

He further said that the sustainability profile of public debt has improved significantly during the present government. He urged the Debt Office to continue its efforts to further improve the debt sustainability profile.

Sites finalized for industrial zoning

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Spi-based inflation falls 0.07% ISLAMABAD

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he weekly inNlation for the week ended for the combined income groups decreased by 0.07 per cent as compared to the previous week. According to the data released by Pakistan Bureau of Statistics (PBS) here, the Sensitive Price Indicator (SPI) for the week under review in the above men-

tioned group was recorded at 218.68 points against 218.84 points last week. As compared to the corresponding week of last year, the SPI for the combined group in the week under review witnessed increase of 1.04 per cent. The weekly SPI has been computed with base 2007 2008=100, covering 17 urban centers and 53 essential items for all income groups and combined.

Meanwhile, the SPI for the lowest income group up to Rs 8,000 wit-

nessed nominal increase of by 0.08 percent as it went up from 209.00 points in the previous week to 209.17 points in the week under review. As compared to the last week, the SPI for the income groups from Rs 8001 to 12,000,Rs 12,001 to 18,000 and Rs 18,001 to35,000 decreased by 0.13 percent, 0.14 per cent and 0.10 percent respectively while the SPI for income group above Rs35,000 witnessed no change. During the week under review, average prices of 10

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MULTAN

iMrAn ALi

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he Model of Customs Collectorate Multan missed its revenue collection target for the month of January due to less import clearances from Multan Dry Port. The Federal Board of Revenue has assigned revenue collection target of Rs4354 million to Multan Customs under the head of customs duty, sales taxes, federal excise duty (FED) and Withholding Tax (WHT).

The Model of Customs Collectorate Multan has made collection of Rs2698.405 million against Rs4354 million collected during the month of January against the allotted target of Federal Board of Revenue.

Multan Customs has collected Rs555.581 million customs duties for the duration of January against the assigned target of Rs.678 million. The Model of Customs Collectorate Multan has attained almost 82 revenue collection target of customs duty. On the other hand, Multan Customs has collected Rs548.008 million during the matching period of the previous Niscal 2015-16.

The Model of Customs Collectorate Multan has made revenue collection of Rs1286.352 million sales tax against the given task of Rs3560 million for the month of January of current Niscal year 2016-17.The Collect orate has collected only 36 % revenue collection of sales

Sunday, February 5, 2017

taxes in the month of January 2016-17.

Multan Collectorate collected Rs.2358.587 million during January of the corresponding economic year 2015-16.

Multan Customs has gathered Rs7.395 million against Rs.24 million tasks for federal excise duty during month of January. The collectorate of Multan Customs has collected Rs16.544 million against Rs92 million under the head of income tax throughout January. Multan Customs has also collected Petroleum Development Levy of Rs831.312 million and additional sales tax of Rs.1.222 million from clearances of High Speed Diesel and other import items throughout the month of January.

Meanwhile, Multan Customs failed to

collect assigned revenue target for the month of January due to decline in the import clearances at Multan Dry Port after imposition of Infrastructure development cess on import goods. Some of the major factors for the decline in the revenue collection are also decline in the clearances of the High Speed Diesel (HSD) due to increase in the domestic production.

Meanwhile, The Model Customs Collectorate handled 685 export consignments of Rs1531.084 million through Multan Dry Port during the month of December 2016-17. According to details, Multan Dry Port witnessed progress in export movement of various consignments due to increasing demands of raw materials from other countries during the month of December 2016-17. The Model of Customs Collectorate posted better export performance by clearing high containers during the month of December of current Niscal year 2016-17. The supplies of the local raw material and furnished items have been increased from South Punjab in the last few months due to their adequate quality material. The Model orate t c e l l co s of Customs Collectorate exm o 2 t us t8 c s f o port has handled only 149 o m l l ode ms ined a o a export shipments of worth t t s t Th e M u a c of has t n e Rs606.986 million during a g t r l a Mu ultan tion t c the matching period of M e , l l d o n ec ha u r 8 n e December 2015-16 of the 0 e h v 0 t re s548. the o Ninancial year 2016-17. of cted r ty. on

du riod colle ing pe s has h c m t o a t s cu he m 16 ring t 2015u l d a c n s o s fi milli reviou the p

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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.

Loans not panacea to economic woes A

LAHORE

Dr AfTAB AfZAL

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ccording to newspaper reports, the total public debts of the country stood at Rs17.5trillion in June 2015, but reached Rs20.6trillion in September 2016, showing an increase of around Rs3trillion in one year. In terms of percentage, the government has crossed the threshold of public debt-to-government ratio of 350 percent which has reached 442 percent.The hard fact is that the government has exhausted its funding for the development of human resources. How the policymakers will generate new funds in this situation should be understandable to the general public

keeping in view the past experiences where the executive orders have disNigured the shape of the tax system in the country. On the external front, the total debt liabilities in June 2015 stood at $61.4 billion, but crossed $74 billion mark a year later. In percentage term, the external debt crossed 14.5 percent last year.

The government has issued the Debt Policy Statement 2016-17 which is the Nirst statement after the government amended the Fiscal Responsibility and Debt Limitation (FRDL) Act of 2005 in June last year. The internal and external debts are continuously increasing in the absence of a reliable Niscal discipline.

The Ninancial experts question the ability and capacity of the gov-

ernment to manage public debts and liabilities which are increasing with every passing year. The government is looking further loans to run its affairs and the imprudent policies and other kneejerking steps have left little hope that the government will be able to even deal with the Chinese investment. Experts are already cautioning over the debt servicing which is looming large in the near future, especially the government should have to prepare to pay the bill of Chinese investment in infrastructural projects.

The government amended the Fiscal Responsibility and Debt Limitation Act to increase the limit of public debt-to-GDP ratio, allowing it to cross the public debt beyond 60 percent of the total

size of national economy. Earlier, the limit was below 60 percentbut the gross public debt-to-GDP ratio reached 66.5 percent last Niscal year after the amendment.The current Niscal constraints speak of the inability of the government to boost the revenue generation through taxes. Industry is the principal revenue generation sector, but imposition of new taxes has curtailed not only investment, but also production capacity of the industrial units. The government took various steps to rein in corruption and document the economy but the steps are mostly backNired. Enactment of laws and reforms are the processes and the society, which still could not recover from the colonial past, cannot be puriNied with one blow.

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UK fossil fuel dependency falls to record low Sunday February 5, 2017

World

LONDON: Fossil fuel dependency in the third quarter (Q3) of 2016 was 2% lower than the same period a year before and at a record low level. That’s according to new statistics from BEIS, which show dependency fell to 78.7%. This was despite increases in the production of oil (8.1%) due to new fields and less maintenance downtime. Gas also increased (10.8%) due to the new Laggan Field. Nuclear production rose by 13.9% due to outages last year. Wind, solar and hydropower production saw the largest increase at 16.4%, following a period of strong winds, bright sun and heavy rainfall combined with a rise in renewable capacity. Bioenergy and waste was the only area to produce less energy in Q3 2016 than Q3 2015, falling by 3.2%.

customs seize 2.9 tonnes of pangolin scales

BANGKOK

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ustoms officials have seized a total of 2.9 tonnes of pangolin scales found in two

italy’s exports face €800m hit f the US returned to protectionist policies, how much would that hurt ‘Made in Italy’ industries? And above all, should the scenario for Italian exports both towards, and in competition with, the United States change, to whose advantage would that be. In the hopes of understanding how economic and international policies could change under the new American president (given the announcements Donald Trump made during the electoral campaign), the Prometeia consultancy firm/research center made a few calculations. Currently with €35 billion in Italian exports in 2015—the United States is Made in Italy’s thirdlargest foreign market worldwide after Germany and France (and the largest nonEuropean market) with the percentage of national exports rising from 6.2% in 2010 to 9.2% in 2015. A 1980s-era, pre-WTO trade policy certainly does not seem compatible with the current flow of goods between the two countries. –CB Report

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shipments transiting Suvarnabhumi airport from the Democratic Republic of Congo to Vientiane, Laos, in December last year, department chief Kulit Sombatsiri said. Mr Kulit said customs officials on Dec 4 examined 34 packages, with a total weight of 1,700 kilogrammes, shipped on Flight TK064

from Kinshasa, the Democratic Republic of Congo, to Vientiane, Laos, via Turkey and Thailand. An x-ray scan revealed the packages contained 1,700kg of the fibrous keratin scales of pangolins. On another shipment of 24 packages containing 1,200kg of pangolin scales was found, again on Flight TK064. In total, 2.9 tonnes of pangolin scales were seized in December.

Meanwhile, Southeast Asian countries are working to reform customs systems in a bid to boost trade. Members of the Association of Southeast Asian Nations are mostly ranked low in the latest global ranking of logistics efNiciency by the World Bank, based on its logistics performance index. The onlyexception was Singapore, which was among the top of the list. The Philippines and four other ASEAN countries had scores below the global average. Streamlining customs clearance procedures is essential for improving the quality of logistics networks. –CB Report

Saudi Arabia may raise uS oil investments under Trump

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audi Arabia may increase its oil investments in the United States due to a more fossil fueloriented energy policy by the U.S. administration of President Donald Trump, the kingdom’s energy minister told the BBC in an interview.

“President Trump has policies which are good for the oil industry and I think we have to acknowledge it,” Minister of Energy, Industry and Mineral Resources Khalid al-Falih told the BBC. Asked whether there is a worry

about Trump’s promise to pursue energy independence, Falih said: “We have no problem with the growth of American indigenous oil supply. I have said it repeatedly as long as they grow in line with global energy demand, we welcome them,” Falih said. “We had billions of dollars invested in reNining and distribution in the United States and we may be increasing that investment on the back of pro-industry, prooil and gas policies of the Trump administration in the US. –CB Report

cigarette excise tax take drops to p163 billion MANILA

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xcise tax collection from cigarettes and other tobacco products recorded a decrease in 2016 due to lower consumption, as well as illicit trade and tax evasion, the Bureau of Internal Revenue (BIR) said.

During a Senate hearing on the proposed Comprehensive Tax Reform Program, BIR deputy commissioner Nestor Valeroso said initial data showed that excise tax collection in products amounted to P163.5 billion in 2016, 3.28 percent higher than the 2015 Nigure of P158.3 billion. Of this amount, collections from tobacco products contributed P91.6 billion, almost eight percent lower than last year’s collection of P99.5 billion.

“There was a reduce in the volume of removal (from factories),” Valeroso

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told reporters on the sidelines of the hearing. Valeroso said higher tobacco prices as well as the implementation of the graphic health warning, helped curb the consumption of tobacco products during the period. He also cited the impact of smuggling and the use and circulation of fake tax stamps to total revenue collection. Meanwhile, Philippine President Rodrigo Duterte on Monday admitted widespread corruption in the police force that is waging his deadly war on drugs, but extended the crackdown until the last day of his term in 2022.

Duterte announced plans to “cleanse” the police force, including suspending anti-drug units, after a series of scandals in which ofNicers were caught committing murder, extortion and robbery while using the drug war as cover. “You policemen are the most corrupt. You are corrupt to the core. It’s in your system,” Duterte told reporters as he railed against the anti-drug ofNicers who allegedly masterminded the murder of a South Korean businessman.

customs seizes 1.8kg narcotics ustoms department at the Foreign Post OfNice in Delhi seized 1,810 grams of narcotics, concealed in 20 separate DVD writers bound for Australia. OfNicials suspect the drugs to be party drugs with valuation worth crores in the international market.

The seizure was made after weeks of scanning parcels bound for foreign countries after a tip-off was received by the Customs department. “We got suspicious when we found a Nictitious name on the list of parcels bound for Australia, after which we scanned all parcels thoroughly,” said a Customs ofNicial.

The drugs were concealed inside the boxes in small packets. “OfNicers had been receiving inputs about fraudsters trying to export narcotics and psychotropic substances through FPO. Accordingly, we remained vigilant for weeks and on basis of suspicion detected the said consignment.

Further investigation is in progress and the drugs have been sent for testing,” said commissioner (Customs) S R Baruah. Preliminary reports suspect the drug to be ketamine a date rape-drug. “This may have been part of a larger racket. We are keeping an eye on parcels at the Foreign Post OfNice,” said a senior ofNicer. –CB Report

Turkey’s Aktif Bank gets nod to raise $120m via sukuk

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ANKARA

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ktif Bank, Turkey’s largest privately-owned investment bank, has received regulatory approval to sell up to $120 million via Islamic bonds, or sukuk, in what could be a rare deal in the international sukuk market. Turkey has

seen steady issuance of sukuk from the government and the country’s Islamic banks, known domestically as participation banks, but corporate issuance remains rare and even more so through dollar-denominated deals.

Aktif Bank will sell the sukuk to foreign investors through its asset leasing company, Aktif Bank Sukuk Varl k Kiralama, according to the

country’s Capital Markets Board. It gave no timeframe for the deal or the third party seeking the Ninancing. In Turkey, sukuk transactions are conducted via asset leasing companies such as the one established by Aktif Bank or other Ninancial intermediaries. Companies can sell sukuk directly by setting up their own asset leasing companies, but the process can be onerous for smaller Nirms, lim-

iting corporate sukuk deals. The government has previously granted tax exemptions for lease-based sukuk, but in August it extended those incentives to all other types of sukuk contracts.

In 2013, Aktif Bank helped raise a one-year 100 million lira sukuk for construction-to-energy Nirm Agaoglu Group, while conglomerate Dogus Group and Turk Telekomunikasyon have also considered sukuk deals.

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Faisalabad ASO seizes smuggled tyres, rims FAISALABAD: The Customs ASO has confiscated (48-Nos), of tyres and rims worth Rs500,000 involving duty and taxes amounting Rs75000. As per the details, ASO deputy Collector Muhammad Rizwan received information that non-duty paid foreign origin tyres and rims would be smuggled into Faisalabad through illegal way without payment of customs-duty and taxes. He immediately constituted a team comprising Superintendent Saeed Akhtar Joiya, Inspectors Khalid Ashraf Noor, Ali Zahid, Mehmood Ahmed Dogar, Sepoys, Muhammad Naeem, Muhammad Khalid, Afzal Hussain, Muhammad Ashraf and Liaqat Ali to conduct the raid.

Sunday, February 5, 2017

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customs surpasses revenue target for the month of January ISLAMABAD TAriQ DerYA

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he Model Customs Collectorate exceeded the assigned revenue target for the month of January 2017. The Collectorate has collected Rs959.65 million in 25 days of January whereas its assigned target was Rs910.48 million.

Collector Dr. Arslan told Customs Today that during the above said period the Collectorate shown outstanding performance and successfully surpassed the assigned target for the month of January 2017. The Collectorate has collected an excess amount of Rs49.17 million before the month ends.

Dr. Arslan said that the Collectorate collected Rs463.22 million in head of customs duty adding that the revenue of Rs7.75million was collected under head of federal excise duty. He added that during the above said period the Collectorate collected Rs331.61 million under head of sales tax as well as collected revenue Rs156.79 million under head of income tax.

Collector Dr. Arslan said that he is optimistic that the customs will successfully achieve the assigned target

for the current Ninancial year 2016.17.

Meanwhile, the Peshawar Customs Collectorate, Torkham station collected revenue Rs219.79 million during Nirst 15 days of January of Ninancial year 2016-17 in head of all duties

and taxes. Additional Collector Peshawar Fazal-e-Samad told Customs Today that during the above said period the Customs Torkham collected revenue Rs39.16 million under head of customs duty, revenue Rs0.12 mil-

lion under head of various taxes and surcharges and revenue Rs1.21 million under head of redemption duty on imports. Fazal-e-Samad said that during above said period the Customs Torkham collected revenue

Rs2.54 million in head of extra development Surcharge, revenue Rs76.08 million under head of sales tax adding that the station collected revenue Rs9.93 million in head of sales tax on imports.

customs Valuation revises value of medical equipment KARACHI

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he Directorate General of Customs Valuation has revised the customs value of Medical Items through Valuation Ruling No 1021/2017 under Section 25A of the Customs Act, 1969.

This Directorate General has earlier circulated reference customs values of different medical

items/equipment Vide Valuation Data Base Letter Nos.83/2016, 84/2016, 143/2016, 144/2016, 145/2016, 159/2016, 160/2016, 161/2016 and 162/2016. However, some importers approached this Directorate General and requested revision of certain VDBs. Therefore, this Directorate General initiated an exercise for determination of customs value for the subject goods.

Meeting with stakeholders was held on 25-01-2017. The stakeholders were requested to furnish the following documents before or during the course of above said

meeting, Invoices of imports during last three months showing factual value, Websites, names and Email addresses of known foreign manufacturers of the item in question through which the actual current value can be ascertained, Copies of Contracts made / LCs opened during the last three months showing the value of item in question, Copies of Sales Tax Invoices issued during last four months showing the difference in price (excluding duty and taxes) to substantiate that the beneNit of difference in price is passed on to the local buyers.

The representatives of Pakistan Chemist and Druggists Association and many importers attended the meeting. The Association and importers agreed with most of the prices circulated vide VDBs as reflective of traded values. However, agitating on few items some importers claimed that the circulated customs values were on higher side, whereas as per their claim, there was a downward trend in prices in the international market. However they did not submit any corroboratory document/evidence in support of their contentions. All

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the items’ values were discussed one by one in detail. Method adopted to determine Customs values: Valuation methods given in Section 25 of the Customs Act, 1969 were followed to arrive at customs value of different types of medical items. Transaction value method provided in Section 25 (1) was found inapplicable Wing’, to wide variation in the values being declared to the customs and incomplete descriptions. Identical/ similar goods value methods provided in Section 25 (5) & (6) were examined for applicability to the valuation.