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Karachi, Thu February 9, 2017

ISLAMABAD

M ARSHAD

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he Federal Board of Revenue (FBR) has structured sales tax in such a manner that the principle of equity is not compromised.

The principle of equity in taxation is an important question widely discussed in public Tinance and is the Tirst canon of taxation on which Adam Smith laid a good deal of stress.

A fair tax system is not merely an issue in pure

economic analysis but also in social philosophy.

There are two prominent theories put forward to devise a fair or equitable tax system. They are (1) BeneTits Received Theory and (2) Ability to pay Theory. Under the said structure of sales tax, an ofTicial source at the FBR told Customs Today that unprocessed food items, Tlour and rice and medicines, that constitute the major portion of consumption of poor household, are exempted from sales tax. Hence the burden is proportionately higher on upper strata of

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society than the poor household.

The FBR collects three major indirect domestic taxes namely sales tax, a tax on sales/ supplies; Federal Excise Duty, a duty on production and sales tax on services in the Islamabad Capital Territory (Tax on Services) Ordinance, 2001 and Customs Duties imposed on the import of goods in the country. However, the ofTicial source said that it had to be realized that due to resource constraints indirect taxes would continue to remain an important source of tax collection.

DG Valuation rejects petition filed by M/s Kasheef Corp,M/s Japan Belt House

Customs ASO impound 163 vehicles worth Rs222.72m in first 7 months of FY2016-17

Fitch Ratings report acknowledgement of govt’s economic policies: Dar

NAB signs MoU with China to oversee transparency in CPEC: Chairman

Sialkot Customs generates Rs7.712b income from July 2016 to Jan 2017

DGValuation has rejected a revision petition filed by M/s Kasheef Corporation | See pAge 02 |

ASO collected revenue Rs222.72m by impounding 163 vehicles during first | See pAge 03 |

Dar hailed reaffirmation of Pakistan credit rating by Fitch Ratings and said | See pAge 04 |

Qamar Zaman Chairman NAB, chairing a meeting at the NAB Headquarters, said | See pAge 11 |

The MCC, Sialkot, has generated Rs7.712b income from July 2016 to January | See pAge 16 |

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IHC to hear case filed by M/s Dewan Cement Limited Thursday, February 9, 2017

ISLAMABAD: The Islamabad High Court (IHC) will resume the hearing of a petition filed by M/s Dewan Cement Limited, challenging a recovery claim made by field office of the Federal Board of Revenue (FBR) on Tuesday.

A single bench of the IHC comprising Justice Aamer Farooq would hear the case. M/s Dewan Cement Limited had filed the reference against a show cause notice issued by the Large Taxpayers Unit, Islamabad.

The company prayed that the FBR office had issued a recovery notice to it which did not hold lawful grounds.

National

Dg Valuation rejects petition filed by M/s kasheef corp, Japan Belt House

MULTAN

KARACHI

iMRAn ALi

wAQAR AHMeD AnSARi

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he Customs Air Freight Unit (AFU) of Multan has handled 1587 export consignments of worth Rs959.584 million during July to December of the current fiscal year 2016-17. The Air Freight Unit of Multan Customs is playing active role in handling of export goods from newly established Multan International Airport. Exporters from local industries of South Punjab are taking keen interest for swift clearance of their export goods from Multan International Airport due to extended services. The swift clearance of export consignments from Multan International Airport is encouraging exporters of the South Punjab for the export goods. The Customs Collectorate Multan AFU has cleared highest number of export consignments during December with 428 exports GDs of worth Rs133.598 million. Air Freight Unit of Multan Customs has handled only 41 consignments of worth Rs61.676 million in the matching month of fiscal year 2016-17. Exporters have exported 583 different freights from Multan International Airport of worth Rs.549.64 million throughout the corresponding economic year 2015-16.

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irector General Customs Valuation Syed Tanveer Ahmed has rejected a revision petition Tiled by M/s Kasheef Corporation and M/s Japan Belt House and upheld the values of industrial rubber V-belts determined vide Valuation Ruling No.923/2016.

According to the details, the importers stated that they were not invited during the processing and meetings of valuation ruling and increased the customs values illogically instead of decreasing. The petitioner suggested that for determination of its value at $1.30/kg is more appropriate. The importer offered that they are ready to supply at $1.30/kg + 10 percent proTit for next one year. They stated that different grades / quantities are being imported, how can highest the lowest quality be equated.

The importer provided sales tax paid invoices which work out at $1.65/kilogram clearance and forwarding and they are selling at Rs295/kilogram to another importer gave its local sales tax invoice showing Rs306/kilogram which was worked out at $1.7/kilogram after excluding duty / taxes.

Department submitted that market survey was conducted from whole sale/retail market and obtained one piece at Rs 65/piece

Multan Afu handles 1587 export consignments

(weighing 140 grams) and Rs 50/piece (weighing 105 grams).

Meanwhile, Director General Customs Valuation Syed Tanveer Ahmed has issued Order in Revision No.296/2017 under section 25-D of the Customs Act, 1969 against Valuation Ruling No.964/2016 issued on

November 11, 2016. The revision petition was Tiled by M/s Bright Industries Karachi. The petitioner stated that the value of aluminum metalized metallic yarn M-Type has been Tixed at $4 per kg for China/India origin and $7 per kg for other origins. The raw materials used for

production of the Nitems of all origins are same.

Then why there is vast difference in value of different origins.

The M-type yarn pure silver coated is imported in a very small quantity and not in bulk quantity or container basis.

SHc approached against non-adjustment on sale tax T

KARACHI

M BiLAL

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he Sindh High Court (SHC) directed the tax authorities and deputy attorney general of Pakistan to Tiled their respective para wise comments on a constitutional petition Tiled by M/s Sanaullah Textile Mills, M/s Sanaullah Longful Textile Pvt Ltd, M/s Sana Industries Pvt Ltd, M/s Gatron Industries Ltd and M/s Eq-

uity Textile Ltd against non-adjustment disallowance of input tax on sale tax paid on packing material.

A two-member bench, comprising Justice Aqeel Ahmed Abbasi and Justice Muhammad Arshad Khan was hearing the petition.

During the hearing, Taseer Khan has shown appearance on behalf of tax department and Tiled power and sought time for submit para wise comments, therefore, court granted his request and adjourned the hearing for 1st week of March, 2017.

Earlier, counsel for the petitioners stated that petitioners are inter alia engaged in the business of processing, manufacturing, packing and marketing of various products and instant petition is being filed against non-adjustment/ disallowance of input tax on sale tax paid on packing material w.i.f 1st July 2014 vide SRO 491 (1)/2016 (the impugned notification), whereby, condition X of SRO 1125 (1)/2011 stands altered so as to disallow the adjustment

of sales tax being paid on packing material as input tax under the sales tax act, 1990.

Citing Chairman Federal Board of Revenue (FBR), Sectary Ministry of Finance, Chief Sales Tax Law & Procedure, Chief Commissioner Inland Revenue RTO and others, petitioners pleaded the court may declare that the proviso to condition (X) of SRO 491(1)/2016 is unlawful, unconstitutional and void bonito insofar as it relates to the disallowance of input on packing mate-

rial. They also pleaded the court may declare that denial to allow adjustment of input tax under the impugned notiTication on packing material is ultra-vires to the provisions of the sales tax act, 1990 as well as against the fundamental rights enshrined under the constitution and restrain them from taking any coercive action upon claiming input tax on packing material in their monthly sales tax returns Tiled under the act 1990 on the garb of condition X of the said notiTication.

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DG Valuation issues reference value for PVC door/floor mat KARACHI: Directorate General of Customs Valuation issued the reference values for PVC door/floor mat.

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

During the scrutiny of previous clearance data, it has been observed that PVC door/floor mat falling under PCT headings 3918.1000 are being assessed at different values and certain transactions are on very low side.

Thursday February 9, 2017

National

ASo confiscates non-duty paid items worth Rs 2 million

customs car cell impound 163 vehicles worth Rs222.72 million

KARACHI

MuBeen HuSSAin

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he Customs Anti-Smuggling Organization (ASO) has foiled a smuggling attempt in a recent raid and confiscated contraband items worth Rs 2 million.

According to details, in pursuance of a tip-off received by Director General Shaukat Ali, the ASO team started searching vehicles at Mochko. While searching the vehicles, the ASO team intercepted a public transport vehicle bearing registration no: CH-14538. The team searched the vehicle and recovered non-duty paid electronic items, including different mobile phones, cameras as well as foreign origin cigarettes.

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customs intelligence seizes nDp items worth Rs4.76m FAISALABAD

nAeeM SHeikH

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he Customs Intelligence and Investigation team confiscated miscellaneous goods worth Rs 4.76 million involving duty and taxes of Rs 1.2 million and impounded a container worth Rs3,00,000. Reportedly, the customs intelligence team was on routine checking near Kot Shabzal Check Post, Sadiqabad. The team intercepted a trailer bearing registration No: LXP-1179. The team checked the vehicle and recovered miscellaneous items including used LED ceiling, melamine plates, 6 diesel cylinder, industrial chilling units, kilogram, motor pump, electric hoist, wheel changer, wood electric surface plainer, revolving office chair, rubber pips, ball bearing, petrol generators 24.4 KVA, rubber hose pipe, electric bakery cover and other items.

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ISLAMABAD

tARiQ DeRYA

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ustoms car cell and Anti Smuggling Organization (ASO) collected revenue Rs222.72 million by impounding 163 vehicles during Tirst seven months (July to January) of Tinancial year (FY) 2016-17.

Deputy Collector Ansir Anees told Customs Today that the both departments shown outstanding performance during the above said period. Ansir said that during the above said period the customs car cell impounded non-duty paid as well as offending vehicles during the above said period. The customs car cell impounded 63 non-duty paid vehicles worth Rs114.37 million.

She said that the customs ASO department collected revenue Rs6.2 million by seizing 4 offending vehicles during last week of Januray2017 as well as the customs car cell generated revenue Rs2.2 million by seizing 2 non-duty paid vehicles. Deputy Collector Ansir Anees added that the collector MCC Islamabad and chief collector north appreciated the performance of both departments and asked them to keep the good work up and nab the offenders.

Meanwhile, The Customs Air Freight Unit (AFU) collected revenue Rs 959.82 million under the head of customs duty during first half (July-December) of financial

year 2016-17.

In an exclusive talk, Additional Collector AFU Khawaja Khuram Naeem told Customs Today that on account of customs duty the AFU collected Rs 200.74 million during December, adding that the AFU collected Rs 152.93 million during November.

Khawaja said that during month of October the AFU collected Rs 148.48 million, during the month of September it collected Rs 143.27

She said that the customs ASo department collected revenue Rs6.2 million by seizing 4 offending vehicles during last week of Januray2017 as well as the customs car cell generated revenue Rs2.2 million by seizing 2 non-duty paid vehicles

Sialkot customs to appoint ‘Attachment officers’

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SIALKOT

cuStoMS BuLLetin RepoRt

www.customsbulletin.com ollector Customs of Model Customs Collectorate (MCC) Ahmed Reza Khan has revealed that the collectorate will appoint “Attachment ofTicers” soon to execute the revenue recovery in beTitting manner.

The collector said the authorities concerned of the collectorate, after getting complete information of the defaulters, will appoint ‘Attachment

OfTicers’ in the Tinal phase of the revenue recovery for collecting the debts.

To a query, Collector Ahmed Reza informed this scribe that the collectorate will also contact the National Database Regulatory Authority (NADRA), State Bank of Pakistan (SBP) and other commercial banks for getting complete details of the defaulters. “The attachment ofTicer will attach the property and bank accounts of the defaulters in case of nonpayment of outstanding amounts mounted against any importers”, he

asserted. Ahmed Reza further said steps are being taken against the defaulters according to the recovery rules. “The authorities concerned have been also approaching the authorities of Sales Tax and Income Tax to Tind the details of the deposited duty/taxes by the importers for the last 20 years”, he added. Responding to another query, Ahmed Reza said the collectorate has appointed individual ofTicers to follow the FTO, tribunal and court cases to ensure speedy recovery of revenue.

million under head of customs duty. He added that the AFU collected Rs 177.41 million during month of August and Rs 136.99 million under head of customs duty during month of July.

Additional collector said that the AFU is optimistic about achieving its assigned target of customs Duty for the month of January as well as to surpass the assigned target for the second half of FY2016-17.

Sc allows Ayyan to travel abroad he Supreme Court (SC) has allowed model Ayyan Ali to travel abroad after rejecting the Ministry of Interior’s appeal filed against the SHC order to remove her name from the exit control list (ECL). A three-member bench of the apex court, headed by Chief Justice Mian Saqib Nisar, upheld the verdict of the Sindh High Court, directing the authorities concerned to remove the name of Ayan Ali from the ECL.

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Excise Dept launches operation against illegal number plates SARGODHA: The Excise and Taxation Department has started operation against vehicles having illegal number plates, tinted glasses, green number plates, blue lights and defaulter in token taxes.

According to E&T Director Rana Intikhab Hussain, twelve teams in Districts Khushab, Mianwali, Bhakhar and Sargodha are conducting operations at various points and these teams checked 6000 vehicles so far during the campaign.

He said that strict action was being taken on the directions of the government against these vehicles.

Thursday February 9, 2017

Business

fitch Ratings hails economic policies: Dar ISLAMABAD

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inance Minister Mohammad Ishaq Dar hailed reafTirmation of Pakistan credit rating

by Fitch Ratings and said it was an acknowledgment of government’s economic policies.

Talking to media here at the signing ceremony of $325m with Asian Development Bank, the Tinance minister said Fitch Ratings had afTirmed Pakistan’s rating at ‘B’ with a ‘Stable’ outlook conTirming the progress achieved by the present government under its economic reform agenda.

He said it was due to prudent policies of Prime Minister Nawaz

pSo profit surges 49percent in H1 KARACHI

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Sharif that helped to lead the country towards economic development.

Fitch recognized that the country’s foreign exchange reserves had strengthened, Tiscal deTicit had reduced and signiTicant progress had been made on structural reforms, he said. Fitch further acknowledged

SBp rejects allegations of its involvement in money laundering

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akistan State Oil (PSO) posted a profit-after-tax (PAT) of Rs10 billion during the first half of this fiscal year ending on Dec 31, 2016, translating into earnings per share at Rs36.90. It represented a growth of 49pc over the PAT at Rs 6.7bn and eps at Rs24.8 in the same period last year. The results were better than expected but the company board did not announce an interim cash dividend, which was a damper on investor sentiments as the oil marketing compnay’s stock price fell 2.89pc.

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that the country’s economic outlook had brightened and looked promising in the current Tiscal year on the back of agricultural recovery and an inTlux of investments under the China Pakistan Economic Corridor, he said. The minister said Fitch forecasted continued strong domestic

demand, with private consumption and faster credit growth. He said Fitch also appreciated the performance of the banking sector and the improvements shown across IMF’s Financial Soundness Indicators wherein the percentage of non-performing loans had also fallen considerably. Fitch forecasts Pakistan’s debt-to-GDP ratio to gradually fall in the medium term as a result of continued Tiscal consolidation, he said. The report also highlighted the reduction in general government budget, with revenues boosted by structural reforms, including the withdrawal of a number of tax concessions, he said. Dar said the budget deTicit had also been projected to continue narrowing gradually as the government remains committed to policy reforms.

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KARACHI

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he State Bank of Pakistan (SBP) has rejected allegations of its involvement in money laundering. The SBP, in a statement here, said,”Apropos the statements made by Member National Assembly, Asad Umar, during a meeting of the National Assembly Standing Committee on Finance, Revenue, Economic Affairs, Statistics and Privatization, it is unfortunate that allegations of involvement of State

Bank of Pakistan in money laundering have been made.”

It was also alleged by Mr Umar that SBP has not provided information for the last four months regarding investments made by Pakistanis in Dubai properties.

“SBP, categorically, rejects such allegations of its involvement in money laundering and clariTies that there is no request for information pending with it,” the statement added. It clariTied that on December 19, 2016, SBP received a set of questions from the Standing Committee on Finance, Revenue, Eco-

nomic Affairs, Statistics and Privatization, National Assembly Secretariat regarding advertisements published in Pakistani newspapers inviting people to invest in property in Dubai etc. Some of the questions pertained to SBP while rest fell in the domain of other government agencies. SBP responded through Finance Division while answering the questions relevant to SBP, it added. Previously, SBP had also provided its views on issues related to buying of properties in Dubai raised by the same MNA in NA committee meeting, the statement said.

Bio establishes cepec, SeZ cell to facilitate stakeholders ISLAMABAD

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he Board of Investment (BOI) established a ‘CPEC, SEZ Cell’ to facilitate the stakeholders on matters relating to China Pakistan Economic Corridor (CPEC) and Special Economic Zones (SEZ). The Cell was inaugurated by Dr. Miftah Ismail, Minister of State and Chairman, BoI here. The requisite staff well conversant with the issues, relating to CPEC/SEZs has been deployed. The Cell has been furbished on the contemporary corporate style and will be equipped with state of the art facilities. The Board of Investment has been assigned the lead role, under CPEC, for Industrial Cooperation. The Chairman, BoI has been designated as the convener of the Pakistan-side Joint Working Group (JWG) on Industrial Cooperation under CPEC. The Board of Investment is also the custodian of the SEZ Act, 2012. Under the SEZ Act, 41 SEZs have been identified so far from all over the country, which also include priority SEZs for CPEC one each to be established in provinces, Gilgit Baltistan, AJ&K and Islamabad.

Establishment of proposed SEZs is expected to usher a new era of economic development, progress and prosperity in the country.

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pakistan, ADB sign $325 million clean energy agreement ISLAMABAD

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akistan and Asian Development Bank (ADB) signed a loan agreement $325 million to improve facilities in education and health sectors of Khyber Pakhtunkhwa and Punjab by providing clean energy.

The ‘Results-Based Loan: Access to Clean Energy Investment Pro-

gramme’ was signed by, Additional Secretary, Economic Affairs Division (EAD), Anjum Assad Amin and Country Director ADB, Werner E. Liepach. Speaking on this occasion, Finance Minister, Senator Mohammad Ishaq Dar said $237 million of the loan would be utilized in Khber Pakhtunkhwa on installation of approximately 1,000 micro-hydropower plants while approximately $87 million would be spent in Punjab on installation of solar fa-

cilities in approximately 17,400 schools and public health facilities.

Dar thanked the ADB for providing assistance to Pakistan for developing such facilities in Pakistan.

Country Director ADB said this investment would directly target poor people and help to improve their livelihood. He said there was a close nexus between infrastructure and living standards adding through this project millions of people would have access to better facilities.

Meanwhile, The Securities and Exchange Commission of Pakistan (SECP) would use full force of law against stockbrokers who have absconded with cash and securities of their clients, Zafar Hijazi, Chairman of the commission said on Tuesday.

The Commission held a lengthy meeting to review the situation arising out of sudden closure of business by a Lahore-based stockbroker, M.R. Securities. This brokerage house was the subject of a

recent inspection by the Surveillance, Supervision, and Enforcement Department of the SECP, according to statement issued here.

The SECP inspection team demanded back ofTice data from M.R. Securities, following which its owner, Mazhar RaTique, disappeared without providing the record. When the SECP’s inspection team highlighted this fact, the Commission immediately sent a team of ofTicials to Lahore.

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ISLAMABAD

tARiQ DeRYA

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he Anti-Smuggling Organization Peshawar generated Rs290.066million revenue during January of Financial Year 2016-17.

During the abovementioned period, the ASO collected revenue of Rs54.3million by seizing gold and foreign currency valued of Rs29.05million. The ASO collected revenue Rs10.38million by conTiscating different kinds of costly smuggled mobile-phones.

The credit for all the above conTiscations goes to the border management steps taken under the National Action Plan.

This has been stated by Additional Deputy Collector Model Customs Collectorate Peshawar Fazle Samad while giving an exclusive interview regarding the performance of the ASO during January FY16-17.

He said during January 2017, the performance of the ASO Peshawar was very good adding the ASO had launched a heavy crackdown on smugglers. The performance of Torkham Customs station had been especially outstanding since they seized heavy quantity of gold, currency, smuggled goods and narcotics during January FY1617. Telling Customs Today about the details of the seizures, he said the ASO collected revenue Rs253.436million by seizing different kinds of foreign origin smuggled

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Thursday, February 9, 2017

goods since the ASO seized 51 offending vehicles priced Rs58.7million and 24 NDP vehicles worth Rs34.6million.

Fazle Samad told Customs Today that during the above said period, the ASO generated revenue of Rs36.732million by seizing 86783 metres of foreign origin fabric and it also earned Rs4.609million by seizing 7957 kilogram tea. The additional deputy collector said that during January FY16-17, the ASO collected revenue Rs4.017million by seizing 2380 tyres and tubes.

During the same said

y that s toda m o t s So cu , the A d told d a o i r m e a S said p illion fazle above .732m e 6 h 3 t s R g durin nue of reign d reve s of fo e e t r t a r e e gen 6783 m arned zing 8 also e t i d by sei n a g 7957 fabric seizin y origin b n o 9milli a Rs4.60 am te kilogr

period, the ASO collected revenue Rs2.3million by conTiscating miscellaneous auto parts.

The ASO collected revenue Rs0.035million by seizing 10 crates of foreign origin liquor adding it also did revenue of Rs54.3million by seizing gold. The ASO generated Rs29.05million income by impounding various kinds of foreign currencies.

He added that during the abovementioned period, the ASO generated revenue of Rs0.699million by seizing fake cigarettes and it also got revenue of Rs0.86million by conTiscating different types of imported electronic goods adding that during said period, the ASO collected Rs0.40million of pirated CDs. The ADC told Customs Today that during the month of January, the ASO earned revenue of Rs0.285million by taking possession of foreign origin medicines and it also collected revenue of Rs10.38million by seizing different kinds of costly smuggled mobile-phones. He added that during the abovementioned period, the ASO collected revenue of Rs16.39million by conTiscating miscellaneous smuggled goods.

Samad said the ASO seized 1302 kilogram of hashish and 1302 kilogram of opium worth Rs6.40million and it also conTiscated worth Rs30million 1302 kilogram of heroin during January FY16-17.

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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

Rising chinese investment

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ccording to media reports, Chinese companies are taking keen interest in snapping up businesses opportunities in Pakistan after signing two major deals in the recent months.

The firms are interested in cement, steel, energy and textile sectors, as part of global trade network under Beijing’s One Belt, One Road project. Pakistan has emerged the key player of the Chinese government’s road network and investment plan. Beijing has bought 40 percent stakes in the Pakistan Stock Exchange and the Shanghai Electric Power has acquired K-Electric for $1.8 billion.

The Pakistani firms are also ready to collaborate with Chinese investors to launch joint ventures in various sectors, including a $2 billion K-Electric expansion plan in the coming years. China’s steel giant Baosteel Group is keen to acquire state-run Pakistan Steel Mills on a 30-year lease. The foreign direct investment reached $1.9 billion during the last fiscal year though it is far below $5.4 billion FDI the country attracted around 10 years ago.The government will have to revisit its policy as to why western countries are keen to invest in Vietnam and Malaysia instead of Pakistan. It is the failure of the foreign missions which could not present the soft image of Pakistan and a land of opportunities for foreign investors. Pakistan needs financial integration not only with China but also with Iran which has opened up its economy to foreign investors. Germany and India are finding business opportunities in Iran and Pakistan needs to take its share of business there. Unfortunately, reports appear in the media that Iran is likely to cancel Pakistan Iran Gas Pipeline deal after Islamabad’s reluctance to continue the project. China is going to shift its small industrial units to Bangladesh and the two countries have recently signed a deal in this regard. However, some Pakistani entrepreneurs are fearing Chinese investment in infrastructural projects will shift the local business to the Chinese enterprises. The government must look into the economic affairs from this angle too, but experts reject any harmful effectsof Chinese investment in Pakistan. The days of close economy are over and it is time the local businessmen should also adopt modern techniques to contest their Chinese counterparts in the fields and not in law books.

case of political beneficiaries T

LAHORE

DR AftAB AfZAL

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he World Bank, in its World Development Report 2017, has revealed a not very secret fact that there is a nexus between politics and business in Pakistan as politically connected organizations received 45 percent more loans than the rest of others from 1996 to 2002. Another fact is that more than 50 percent of the politically active beneficiaries of such loans came as defaulters at the end of the day. The loan money also remained unproductive in most of the cases, costing the country’s gross domestic product of around 1.6 percent. The report

says that the recipients of loans were given preferential treatment by the lending agencies and they were able to smash through the regulatory barriers. However the others, who were not politically active, faced many requirements. The bank does not rule out the growth of economies in a hostile environment where the nature of governance is not questioned, but such growth is not sustainable. No doubt good governance is the first step toward development of the economy.

The countries with good policymakers, administrative and managerial skills perform better than those which run the economic affairs on adhoc basis and without developing a mechanism for the implementation of their policies.

In that case, all the vital policies are issued and implemented through executive orders. According to the bank, powerful political actors are the real problemfor the economy as they resist transition from factor-intensive growth phase to another growth model. It calls for the developing economies to revise their methods of governance to face the challenges of security, growth and equity. The institutions are held responsible for the failure of policies and reaching technical solutions. An improvement in the governance is necessary for the success of policies.

The need for better governance also increases when circumstances change. Tax evasion, corruption and security are the main

challenges and a credible mechanisms of rewards or punishment should be in place to streamline the affair and curb malpractices.

The bank report reveals very real situation about policies and reforms, saying political expediencies come in the way of introduction of reforms and implementation of policiesin Pakistan. The foreign financial institutions often discuss policy matters in open and point out anomalies in political and financial disciplines. In Pakistan’s case, politicians are the main beneficiaries of the government reforms and loan programme.

The report covers about sixyear lending during the turn of century, but the situation is not different even today.

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Adata January revenues increase WASHINGTON: Memory module firm Adata Technology has announced consolidated revenues of NT$2.51 billion (US$81.2 million) for January 2017, up 10.7% on month and 37.5% on year. Adata credited the revenue growth to rising DRAM and NAND flash prices, as well as replenishment demand in China.

Adata’s revenues generated from its DRAM products grew 12% sequentially to account for 44.1% of the overall January revenues, while sales of its memory cards and drives, and other NAND flash products increased 39% on month to account for 21.8% of the total revenues during the month.

Adata disclosed previously its pre-tax profits for 2016 climbed to a 3-year high of NT$1.61 billion with pre-tax EPS reaching NT$7.50. Rising prices of DRAM and NAND flash memory boosted Adata’s profitability in the fourth quarter of 2016.

Spainsh envoy for direct talks with private sectors to improve trade ISLAMABAD

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arlos Morales, Ambassador of Spain said that promoting frequent interactions between private sectors of Pakistan and Spain was necessary to raise awareness about potential areas of mutual cooperation and improve bilateral trade between the two countries. He said this while addressing business community at Islamabad Chamber of Commerce and Industry. He said after the grant of GSP Plus status to Pakistan by the European Union, Pakistan’s exports to Spain have improved due to which bilateral trade in 2015 reached US$ 1.1 billion while the balance of trade was in

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favor of Pakistan. He said that after GSP Plus, Pakistan’s exports to Spain improved by 44 percent during the first year, 24 percent second year but only 5 percent during the third year. He said Pakistan’s exports to Spain mostly consisted of textiles and stressed Pakistan should focus on diversification of its exports to achieve better results. He said Spain was third largest trading partner of Pakistan in EU and 7th largest in the world. However, there was more scope for improving trade relations between the two countries. He said TDAP should inform Spain Embassy in advance about upcoming trade fairs in Pakistan so that Spanish companies could be motivated to participate in such events. He said over 120,000 Pakistani community in Spain could act as a bridge for improving trade relations between the two countries. He said Spain’s tourism industry was the 2nd largest in the world as last year 75 million tourists visited Spain while its own population was 46 million.

Thursday February 9, 2017

Chambers

islamabad goods transporters demand construction of new truck stand A

ISLAMABAD

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delegation of Islamabad Goods Transport Association led by President Malik Shabbir Awan visited Islamabad Chamber of Commerce and Industry and called upon the CDA to set up a Truck Stand in I-11/4, Islamabad on urgent basis as without this facility business of goods transporters was suffering badly. Addressing the delegation, Khalid Iqbal Malik, President, Islamabad Chamber of Commerce and Industry said that goods transporters were playing a vital role in smooth growth of business activities as without their services, running the wheel of business and economy was not possible and urged upon the CDA to establish the truck stand in Islamabad to facilitate this important sector. He said CDA had already reserved a place in its Master Plan for truck stand in I-11/4, Islamabad, but it was unfortunate that the said facility was not constructed as yet due to which goods transporters were facing problems.

He said that CPEC project was go-

ing to create lot of business opportunities for goods transporters and stressed that they should gear up to upgrade their transport for coping with coming challenges in CPEC scenario. He assured that ICCI would play role for resolving highlighted issues of goods transporters by taking up them with relevant authorities.

Speaking at the occasion, Malik Shabbir Awan, President, Islamabad Goods Transport Association said that local goods transporters were

creating jobs and providing useful services to traders and industrialists, but lack of truck stand in Islamabad was major hurdle for them. He said that police dealing at entry points of Islamabad with goods transporters was a cause of concern and urged that IG Police should look into this important issue to address their concerns. He said the practice of forced capture of containers by the local administration at some occasions was causing business losses to the goods

Dubai trade recognises 9th e-services excellence Awards winners

U DUBAI

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nder the patronage of H.H. Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, Dubai Trade, the single window for crossborder trade and a DP World company, has commended the winners of the 9th E-Services Excellence Awards (ESEA) held in Dubai recently. The annual award event is organised by Dubai Trade to recognise customers who use its smart services appreciating their contribution in promoting smart transformation in trade and logistics in Dubai. The award ceremony was held at Atlantis Dubai, and attended

by HE Abdulla Al Saleh,Undersecre-

tary of the Ministry of Economy for Foreign Trade & Industry, Ali Ibrahim Mohammad, Deputy Director General of Department of Economy in Dubai, Eng. Mahmood Al Bastaki, CEO of Dubai Trade, business leaders, government ofTicials, representatives from the Tinancial sector, shipping and logistics, and the media who consider it one of the main indicators of Dubai’s transformation to a smart economy.

HE Al Saleh and Al Bastaki honoured the winners of the 9th ESEA in recognition of their excellences.

Bin Abed General Land Transport won the Smart Services Award for M-Token Services, with Ocean World Shipping & Clearing runnerup. NAFFCO Group won the Smart Services Award for Free Zone Services, with Del Monte Foods runner-

up. Takhlees Cargo Services won the Smart Services Award for Clearance Services, with Mehta Trading Co. second. Al Taawun Clearing & Forwarding won the Smart Services Award for Payment Services, with Mosaco Shipping & Forwarding as runner-up. DAMCO won the Best Innovative Award in the trade and logistics industry, and Mai Al Baz, a student from the Wollongong University in Dubai, won the Best Innovator award. Two awards in the exporters’ category were presented

by Dubai Exports, the export promotion agency of the Department of Economic Development (DED), as part of its strategic partnership with Dubai Trade. Mai Dubai won the New Exporter of the Year award, with Delta Food Industries as runner up.

transporters and stressed that such practices should be avoided in future. Malik Shabbir Awan said that goods transporters have to pay advance taxes like vehicle tax, road tax in addition to income tax on services, but FBR tactics of repeated selection for audit were creating harassment in the business community of this sector. He stressed that instead of harassing regular taxpayers, FBR should encourage them through various incentives.

Realtek January revenues increase ealtek Semiconductor has reported consolidated revenues of NT$3.52 billion (US$113 million) for January 2017, up 17.5% sequentially and about 8% on year. Robust demand prior to the Lunar New Year holiday led to the revenue growth, according to the networking IC design company. Realtek saw its revenues fall to a 10month low of NT$2.99 billion in December 2016, as a result of year-end inventory checks at clients. Realtek is scheduled to hold an investors conference later this month to discuss its profit results for 2016 and provide a business outlook. Seasonal factors such as fewer working days will likely drag down Realtek’s revenues in the first quarter of 2017, according to market watchers.

Nevertheless, revenues for all of the year are expected to set a new record high thanks to strong shipments of WLAN ICs as well as USB Type-C chip solutions. –CB Report

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Faisalabad Excise motor branch collects Rs400.57m in H1 Thursday February 9, 2017

National government submits answer in LHc on tax amnesty scheme LAHORE

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FAISALABAD: The motor branch of the Excise and Taxation Department has collected Rs400.57 million under the head of motor tax during six months of the current fiscal year and achieved up to 41 percent annual target of Rs968.07 million.

Sources informed Customs Today that the department collected Rs303.70 million from Faisalabad against the assigned target Rs728million up to 42 percent during said period while from Jhang the Excise collected Rs40.637 million against the assigned target of Rs108 million which is up to 37 percent.

Additional collector Beelam issues notice to owner of nDp vehicle C

FAISALABAD

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he federal government has submitted answer in Lahore High Court (LHC) about the tax amnesty scheme. The representative of Federal Government informed that tax amnesty scheme was introduced to increase tax net and for registered traders as taxpayers. On Wednesday, Federal Government presented answer before Justice Shahid Jameel Khan in case filed by the Advocate Shiraz Zaka. The tax amnesty scheme was challenged by the advocate of Lahore High Court (LHC) Shiraz Zaka in the (LHC). In the written answer, the Federal Government argued that tax amnesty scheme was introduced for those traders who did not filed the tax returns in the Federal Board of Revenue (FBR) from last ten years and federal government has decided to expand tax net to those traders through tax amnesty scheme for huge tax collection.

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faisalabad fiA arrests notorious human trafficker he Federal Investigation Agency (FIA) has arrested a humantrafficker namely Shoket Hayat son of Muhammad Ali residential of Srawani patowana during an action.

Sources told Customs Today that FIA Deputy Director Syed Imam Zaidi and Sub inspector Taimoor Haider conducted a raid along with his team near Jhung Road Faisalabad and arrested the accused who was running illegal business of sending innocent people abroad after extorting big amounts from them. The accused person extorted the huge amount of Rs800,000 from the complainant person named as Taimoor Safdar Son of Safdar Iqbal resident of the jhang. –CB Report

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ustoms Adjudication Additional Collector Beelam-urRamzan has issued a showcause notice to an accused who is involved in smuggling of imported Toyota Land Cruiser.

Sources told Customs Today that Sargodha Anti-Smuggling Organization (ASO) impounded the said vehicle with registration No: LHH7904 (Lahore) during an anti-smuggling operation near Khiyam Hotal chowk, district Sargodha. During the checking, the ASO team intercepted the vehicle of which owner introduced himself as Qaleem Raza. The ofTicials asked the owner to prove the legal status of the vehicle but he failed, so they impounded it under Section 156 (I) of

the Customs Act-1969 and served a contravention notice on the accused and forwarded the case to Customs Adjudication. The Customs Adjudication also issued a notice to ac-

cused on the violation of Section 10A. 89(1) and 156(1) of the Customs Act-1969. However, the adjudication has directed the accused to Tile reply by the given time. The case of vehi-

cle may be decided in the next hearing, due to be held on 27-2-2017.

Meanwhile, Customs Adjudication Additional Collector Beelamur-Ramzan has issued a show cause notice to a suspect in a non-duty paid used Toyota Land Cruiser case involving Rs1.311 million. As per the details, Faisalabad Customs Intelligence and Investigation following information impounded a used Toyota Land Cruiser bearing Registration No.LHH – 7904 near Sargodha Road. The team asked the driver of the vehicle named as Muhammad Qaleem Raza to show documents regarding legal import of the vehicle but he could not produce the same.

Therefore, the ofTicials impounded the vehicle under the customs laws and forwarded the case to the Customs Adjudication for further legal action.

customs collects Rs639.056b in first 7 months T

KARACHI

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he overall revenue collection

by Pakistan Customs during the Tirst seven months (JulyJanuary 2016-17) stood at Rs 639.056 billion, up 5.4 percent as against Rs 606.16 billion collected during the same period of last Tinancial year.

According to the details, the revenue collection by Pakistan Customs South Region surged by 6.9 percent to Rs 551.22 billion in July-January 2016-17 as compared with the collection of Rs 515.12 billion the same period last year.

Customs duty collection stood at Rs 187.18 billion during July-January 2016-17 as compared to Rs 169.245 billion collected during the same period last year. Customs duty collection by Pakistan Customs South region stood at Rs 161.335 billion in July-January 2016-17 as compared to Rs 145.23 billion last year.

Overall sales tax collection at import stage stood Rs 345.326

billion during the period under review as against Rs 331.174 billion during the same months last year. Customs Appraisement South’s collection of sales tax at import stage stood at Rs 296.876

billion as against Rs 278.737 billion collected last year in the similar period. Income tax collected

by Pakistan Customs during (July-January 2016-17) stood at Rs 102.698 billion as compared

to Rs 99.83 billion last year. Customs Appraisement South collected income tax of Rs 90.63 billion in the period as against Rs 87 billion collected in the same period last year.

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SHC to take up 90 Customs, income tax related cases KARACHI: The Sindh High Court (SHC) will take up more than 90 Customs and income tax related cases. According to the roaster, one bench comprised Justice Aqeel Ahmed Abbasi and Justice Arshad Hussain Khan and another comprising Justice Munib Akhtar and Justice Muhammad Junaid Ghaffar. According to the SHC office, intimation notices were also issued to the parties for attending the court and the SHC also has directed the parties to file rejoinders before the courts. On another note, Customs (Taxation & Anti-Smuggling) Court Judge Syed Faiz Rasood Rashdi will also take up more than 20 customs and income tax related cases. According to the cause list, regular hearing, prosecution evidences and confirmation of bail applications were included in these cases; custom court.

post clearance Audit unearths fraud of Rs77.1 million in silk fabric import ISLAMABAD

M fAiZAn

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he Directorate General Post Clearance Audit (PCA) unearthed a fraud of misdeclaration on import of silk fabric. M/s Fida Trading International misdeclared the values of imported silk fabric and caused a revenue loss of Rs77.1 million.

Reportedly, Fida Hussain, proprietor of M/s Fida Trading, imported 211,624 kilogram silk fabric from China in 99 consignments during the period from May2010 to March2013. He declared the values of these fabrics in the range from US$6 per kilogram to US$22 per kilogram. According to PCA sources, as

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per the Valuation Ruling 25-A-107, dated June 16, 2008 presently in the field, the determined floor price is US$30 per kilogram and the Ceiling price stretches from US$55 per kilogram to US$174 per kilogram. Sources said that the imported silk yarn was being assessed at US$30 per kilogram ever since 16 June 2008. The importers of silk yarn are following this floor price. The ceiling price is, however, meeting a different treatment. The importers of silk fabrics are blatantly disregarding even the lower limit (US$ 55/kg) of the ceiling price range.

M/s Fida trading imported silk fabrics could be declared and assessed only at a value falling within the ceiling price range. Importer however, declared the values of imported silk fabric much below the floor price. When asked to furnish import documents in justification of his bewilderingly low declared value. Importer misdeclared values of his imported silk fabrics in 99 goods declarations causing a loss of Rs77.1 million to the revenue.

National

nAB signs Mou with china to oversee transparency in cpec: chairman Q LAHORE

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amar Zaman Chaudhry, Chairman NAB, chairing a meeting at the NAB Headquarters, said corruption is a poison which not only causes delays to the early completion of development projects but also causes huge losses to national exchequer. It also increases inTlation in the country by decreasing the buying power of the common man.

He said the NAB has signed a Memorandum of Understanding (MOU) with China to enhance cooperation in eradication of corruption and oversee transparency in China Pakistan Economic Corridor (CPEC) projects in Pakistan.

He said the NAB has perfected its Standard Operating Procedures (SOPs) to rationalize the workload.

He further said timelines have been prescribed for efTicient, effective and expeditious disposal of cases putting a maximum limit of 10-month from complaint veriTication-to-inquiry-toinvestigation and Tinally to a reference in the Accountability Court. In order to ensure uniformity and standardization, the Standard Operating Procedures (SOPs) in vogue were re-

vised after a gap of 10 years to make these responsive to the needs of changed economic, social and technological realities along with goals and targets for smooth conduct of operational activities in accordance with law and bringing further improvements in the performance of the NAB Regional Bureaus. Chairman NAB Qamar Zaman Chaudhry said the NAB had devised Partly QuantiTied Grading System (PQGS) to review and evaluate the performance of all the NAB Regional Bureaus on annual ba-

Thursday February 9, 2017

sis. He said the NAB has devised Combined Investigation Team (CIT). The concept of CIT has indeed improved the quality of investigations as well as professional capacity of Investigation OfTicers (IOs). The Internal Accountability Mechanism (IAM) recently devised will ensure quick and effective monitoring and evaluation of all levels of workforce at the NAB. He said the NAB has proposed to the Ministry of Law and Justice that Whistle Blowing Protection Act is imperative for the country.

Deputy collector Asma issues notice to owner of smuggled tyres FAISALABAD

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

Sources told Customs Today that AntiSmuggling Organization (ASO) intercepted a vehicle near Jhang Road and recovered huge quantity of used tyres during the searching of the vehicles.

The ASO team asked the owner of the goods who was identified as Muhammad Nadeem to show documents regarding legal import of used tyres but he failed to produce any legal documents regarding possession of the above said items. Therefore, the ASo team seized the tyres under customs laws and forwarded the case to Customs Adjudication for further legal action. Now, Deputy Collector Asma Hameed issued notice to the accused person on the violation of Section 10-A. 89(1) and 156(1) of the Customs Act, 1969 punishable under Section 156(1)89 of the Customs Act, 1969 and served him a show cause notice as to why the seized item should not be confiscated under aforementioned provisions of the law.

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customs Valuation revises value of methyl acetate

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KARACHI

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he Directorate General of Customs Valuation has revised the customs value of eitiylacltaie, methyl acetate through Valuation Ruling No 1023/2017 under Section 25A of the Customs Act, 1969.According to details, The values of the ethyl acetate were earlier determined vide Valuation Ruling No 646/2014 dated 21.3.2014. There were several representations from different importers/ traders and trade bodies i.e. Pakistan Chemicals and Dyes Merchants Association (PCDMA),

for determination of customs value of the methyl Acetate and Sec Butyl Acetate as well.

Hence, existing valuation ruling which is over one year and ten month old is required to be revised in the light of honourable High Court of Sind at Karachi’s orders dated 10.11.2015 in constitutional petition No. D- 6918/2015. Since 90 days have passed and representations were received from commercial importers regarding values determined in afore mentioned valuation ruling, an exercise was initiated to re-determine the values of Ethyl Acetate, methyl Acetate and Sec Butyl Acetate in the light of international price trend, in terms of

Section 25-A of the Customs Act, 1969. Meeting with all the stakeholders including importers, trade bodies i.e. Pakistan Chemicals and Dyes Merchants Association (PCDMA) and representatives from clearance Collectorates, was held on 19.01.2017 to discuss the current international prices of Ethyl Acetate, methyl Acetate and Sec Butyl—-Acetate. The view point of all participants was heard in detail and considered to arrive at .Customs value for Ethyl Acetate, methyl Acetate and Sec Butyl Acetate.

Valuation methods provided in Section 25 of the Customs Act, 1969 were duly applied in their regular sequential order to address the par-

ticular valuation issue at hand.

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

Meanwhile, Directorate General of Customs Valuation issued the reference values for PVC door/floor mat. The Directorate General has initiated an exercise to develop database values for different items wherein it has been observed that declarations are of wide range and do not correctly reflect values of the items as traded in the international market.

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Russia looks at Greece as gas gateway to Europe Thursday February 9, 2017

World

MOSCOW: The Greek private limited company Gastrade, owned by the Greek conglomerate Coupelouzos Group, has been licensed to develop a floating storage and regasification unit (FSRU), which would allow for the import of liquefied natural gas (LNG) from various sources, including the United States, to northeastern Greece (Energypress.gr, December 22, 2016). Located off the coast of Alexandroupolis, the FSRU system is linked to a 29 kilometer subsea and onshore pipeline (25 km offshore and 4 km onshore), with a daily capacity of 16.8 million cubic meters of gas per day. Gastrade plans to import LNG through this project into the country, whereas the Monaco-registered LNG ship-owner GasLog will be responsible for shipping the gas.

South Africa’s illicit cigarette trade increases

philippine groups call for rise in tobacco tax MANILA

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CAPE TOWN

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outh Africa accounts for a quarter of the world’s illicit cigarette market‚ with taxes not paid on one in four smokes bought in the country. Despite this‚ the South African Revenue Service has failed to answer questions this week on how much the country loses in terms of revenue from the illegal trade in cigarettes.

An explosion in the trade of illegal and illicit cigarettes in South Africa over the past Tive years has seen the country become both a multi-million dollar market as well as a conduit to other African markets for international smuggling syndicates. In 2015‚ the now chairman of the Tobacco Institute of Southern Africa‚ Francois van der Merwe‚ revealed to The Times that hijacking a vehicle transporting cigarettes was like “striking

china’s rate raises surprise markets hina’s central bank surprised financial markets yesterday by raising short-term interest rates on the first day back from the Spring Festival holiday a further sign of policy tightening as the economy shows signs of steadying. While the increases were modest, they reinforced views that China’s authorities are intent on containing capital outflows and reining in risks to the financial system created by years of debt-fueled stimulus. Higher interest rates could prod debt-laden firms into deleveraging, though at the risk of stunting growth. “It appears to be an intent to control a real estate bubble.

It could also be aimed at arresting the yuan’s depreciation, although it is on the reverse repo they touched upon and the impact remains to be seen,” said Naoto Saito, chief economic researcher at the Daiwa Institute of Research in Tokyo. –CB Report

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gold”. At the time‚ he said that between 2010 and 2015‚ South Africa lost more than R22-billon because of illicit cigarettes‚ which are cigarettes which have been either undeclared or incorrectly packaged by the manufacturer to avoid paying tax. Illegal cigarettes are cigarettes which are either stolen or counterfeit. A single cigarette on the street today sells for R3 depending where you buy it with hijackers stealing up to 10‚000 in a single heist. The failure by SARS to

respond to questions‚ follows this week’s arrest of Mozambican national Enoque Luisa Ricotso‚ 39‚ in Mpumalanga as he tried to Tlee police and escape into Swaziland and on to Mozambique. Ricotso‚ who allegedly specialised in hijacking British American Tobacco delivery trucks‚ was arrested for allegedly operating an illegal cigarette empire‚ which is thought to have generated him and his suspected criminal network over R20million in the past decade.

Russian heavy truck tax to grow twofold from April 15

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he toll in Platon heavy haulers fee system will return to initially planned level of 3.06 rubles ($0.05) per km from April 15 of this year. Such information is contained in the decree approved by the Russian Government. The Platon toll is now equal to 1.53 rubles ($0.03) per km. “The Russian Government made a decision to extend the preferential treatment in the Platon system until April 15 of this year. Expiration of the term will mean a return

to the initial model, which contemplates the charge of 3.06 rubles ($0.05) per kilometer of heavy hauler’s run on federal highways.

The weighted average burden of business, including small and medium enterprises, will be smaller than in the initially contemplated model stipulating a two-stage increase in this charge in February and June of this year,” Russian Minister of Transport Maxim Sokolov told reporters in the comment. –CB Report

ivil society groups in the Philippines called for significant increase in tobacco tax every year starting 2018 to discourage the Filipino youth from smoking. The HealthJustice Philippines, National Anti-Poverty Commission’s Youth and Student Sectoral Council, Philippine Cancer Society, Center for Empowerment and Development of the Elderly and Seniors (CEDES), National Anti-Poverty Commission’s Senior Citizen’s Sectoral Council, EcoWaste Coalition, ANG NARS, New Vois Association of the Philippines, and ONE for Nursing Empowerment seek a P1 per cigarette stick or P20 per pack increase in tobacco taxes.

“The tobacco tax is primarily a health measure. Increasing the tobacco tax is recognized by the World Health Organization (WHO)

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as one of the most effective ways of preventing the youth from starting to smoke,” the groups said in a statement.

They said the country’s tobacco tax, which remains one of the lowest in the world, should be raised signiTicantly to have the most substantial impact on the health of the country’s youth. The sin tax reform law passed in 2012 introduced higher excise rates for tobacco products and paved the way for a unitary rate system by 2017. It indexed the tax rate to inTlation by increasing it annually by 4 percent, regardless of the price and brand of cigarettes.

House of Representatives Bill 4144, which sought to amend the sin tax reform law by replacing the unitary system with a two-tier tobacco tax system, was however Tiled on Oct. 19 last year. Under the proposed change, two different tax rates will be imposed, depending on the cigarettes’ classiTication, with premium brands to be taxed higher than budget brands.

Japan imports less Lng in 2016

apan imported 83.34mn metric tons of LNG in 2016, according to provisional trade data published January 25 by the Tinance ministry in Tokyo. That represented a volume decline of just 2% compared to 2015. The value decreased by twoTifths (40.4%) to 3,283.9 billion yen ($28.9bn) LNG accounted for 5% of all Japan’s total 2016 import value of 65,965.1bn yen. In December 2016, Japan imported 7.55mn mt which was 6.5% less year on year, and the value fell by a quarter to 323.4bn yen ($2.85bn).

Meanwhile, Japan posted its Tirst trade surplus in six years in 2016 as

imports slumped on falling energy prices, the Finance Ministry said Wednesday. The surplus stood at ¥4.07 trillion ($35.76 billion).The value of imports tumbled 15.9 percent to ¥65.97 trillion as crude oil and liqueTied natural gas imports slid. Exports dropped for the Tirst time in four years, down 7.4 percent to ¥70.04 trillion, as shipments of iron, steel and cars decreased. The trade balance improved drastically from a deTicit of ¥2.79 trillion in 2015. Resource-poor Japan relies heavily on energy imports, particularly after the 2011 Fukushima nuclear disaster boosted demand for fossil fuels. –CB Report

thailand rice exports seen falling to 9.5m tonnes

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BANGKOK

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hailand’s rice exporters expect a drop in sales this year, to around 9.5 million metric tons, as they face for more aggressive competition from its neighbor, Vietnam. Thailand, the world’s secondbiggest rice exporter after India, ex-

ported 9.63 million tons of rice in 2016, according to Tigures from the Commerce Ministry.

“We target 9.5 million tons this year,” Chookiat Ophaswongse, honorary president of the Thai Rice Exporters Association, told Reuters.

He added the volume would be worth around 150 billion baht ($4.28 billion). Chookiat’s forecast is lower than the 10 million tons fore-

cast by the commerce ministry last month. The rice trade is expecting a number of difTiculties this year, including volatile exchange rates, as rice prices in Vietnam and India are lower and therefore more competitive than Thai rice.

“There’s quite a gap in prices between our rice and Vietnamese rice, which is now $20, and their winter spring crop is very good,” Chookiat

said. Thailand also still has about 8 million tons of rice in state stockpiles, which was bought at above market prices by the previous government of Yingluck Shinawatra to subsidize farmers. The government will hold its Tirst state auction on Feb. 16, aiming to ofTload 2.8 million tons – its most ambitious yet.

It plans to clear the stockpiles by the end of 2017.

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NZ meat, dairy exports down in 2016 WELLINGTON: The total value of all export goods was $48.4 billion for the year ended December 2016, down $544 million from the previous year. This is the second annual fall in a row for exports. The latest annual total is $1.6 billion less than the high of the 2014 year. The biggest fall by value was for meat and edible offal, New Zealand’s second largest export group, with sales down $909 million to $5.9 billion. The fall in meat was driven by beef (down $481 million) and lamb (down $415 million). The United States accounted for three-quarters of the fall in beef, while the European Union (EU) accounted for nearly half of the fall in lamb.

world Bank cuts turkey’s growth forecast for 2016 orld Bank has revised its growth forecast for Turkey in 2016 to 2.1 percent from 3.1 percent, the bank said in its economic report yesterday, indicating that it had reviewed the forecast, “Because recovery in the fourth quarter was weaker than envisaged,” adding that net exports would help the country’s growth rate recover somewhat in 2017. “Turkey faces headwinds that will prevent strong recovery, with estimated 2017 growth of 2.7 percent driven by net exports and public spending,” the report said.Turkey’s exports increased by 15 percent in January, the highest rise in the last 49 months, data from the Turkish Exporters Assembly (TİM) revealed on Wednesday. World Bank said Turkey’s economic expansion would recover in 2019 to 3.7 percent.

The Turkish government’s most recent growth forecast for 2016 was 3.2 percent, as stated in its mediumterm economic program released last October. –CB Report

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turkey’s natural gas sector to grow in 2017 urkey has a strategic role in natural gas transit because of its position between the world’s second-largest natural gas markets, the U.S. Energy Information Administration (EIA) said on Thursday. The country located between Asia and Europe is strategically placed for the transfer of natural gas reserves of the Caspian Basin and the Middle East to markets in continental Europe. In its country analysis published early February, the U.S. administration stated that as of Jan. 1, 2016, the Oil and Gas Journal estimates Turkish natural gas reserves at 177 billion cubic feet (Bcf). Turkey produces only a small amount of natural gas, with total production in 2015 amounting to 14 Bcf. The analysis underlined that the country is an important consumer of natural gas as well as having potential to become an important natural gas transit country. –CB Report

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World Customs

DRi seizes smuggled memory cards worth Rs6.6m

MUMBAI

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ollowing the recovery of memory cards worth Rs 66 lakh from the Andheri Air Cargo, ofTicers of the Directorate of Revenue Intelligence (DRI) arrested a man in connection with its smuggling. Investigations have revealed that accused Sarfaraz Haji alias Turk, who is a very important part of the illegal import-export racket, is the member of a highly professional gang. In all, he has made 29 trips to countries like Dubai, Malaysia, Sri Lanka and Thailand till date, for the

business.

According to sources in the DRI, recently they had received information about a huge quantity of memory cards concealed in a box at the Andheri Cargo. Thereafter, they raided the spot and seized the consignment, which had 46,000 memory cards. The box had the name of a Chinese company Shimin Guo Gungxo and a Mumbai address written on it. However, the cops could not locate the address.

On enquiring about the parcel with the courier company, which had transported it, Turk’s name came to the fore. Thereafter, he was arrested. A DRI source said that Turk’s interrogation revealed that the racket was an international one.

He has been booked under relevant sections of the Customs Act. Meanwhile, Two days before presentation of the Union Budget in the Parliament, ofTicials 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. OfTicials 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.

Thursday February 9, 2017

Agents arrest six in two smuggling events ucson Sector Border Patrol agents from the Nogales and Willcox stations working immigration checkpoint operations interdicted two human smuggling attempts. The interdictions resulted in the arrest of four United States citizens and two Mexican nationals illegally present in the United States.

Yesterday, agents at the Interstate 19 checkpoint north of Tubac, referred two men in a Nissan Altima to the secondary inspection area. During the search, agents found an illegal immigrant from Mexico concealed in the trunk. The driver and passenger of the vehicle were arrested for smuggling and the Mexican national is pending removal proceedings. In a separate incident Wednesday morning, agents at the immigration checkpoint on State Route 80 near Tombstone referred a Toyota Corolla to the secondary inspection after a canine alert. During the search agents found an illegal immigrant from Mexico concealed in the trunk. The driver and passenger were arrested for smuggling and the Mexican national is pending removal proceedings. Federal law allows the Border Patrol to charge individuals by complaint, a method that allows the filing of charges for criminal activity without inferring guilt. An individual is presumed innocent unless and until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt. –CB Report

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cigarette tax take dips 9% to p91.6 billion

E TOKYO

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xcise tax collections from tobacco products fell by 9 percent to P91.6 billion in 2016 from P99.5 billion in 2015 despite the annual increase in excise tax rates, due in part to the proliferation of fake cigarettes and tax stamps, the Bureau of Internal Revenue (BIR) said.

Nestor Valeroso, BIR deputy commissioner, said other reasons

for the decline could be the implementation of the Graphic Health Warning (GHW) Law and lower removals. “The GHW may be one of the causes. I have to validate the Tigures, this is just tentative. Plus, there’s the fake stamps that we discovered, as well as smuggled cigarettes,” Valeroso said. He said there is still no estimate on the illicit market and leakages.

“The BIR is trying to prevent or reduce leakages by doing undercover surveillance activities, and we have done some strategic plan-

ning,”Valeroso said. “There aren’t much fake stamps here in Metro Manila since it will be easier to detect. Most of it are in the provinces.

There are also some smuggled cigarettes coming from Zamboanga,”he added. Last December, the BIR and Bureau of Customs (BOC) teams seized fake cigarettes worth over P1 billion, fake tax stamps worth approximately P175 million in taxes, along with raw materials, machines for cigarette manufacturing and other paraphernalia in separate raids in Pangasinan, Pampanga and

Bulacan. Finance secretary Carlos Dominguez III lauded the BOC and BIR for intensifying their uniTied campaign against the illicit tobacco trade. “These sustained efforts show that the Duterte administration’s campaign against corruption and other illegal activities would be pursued with the same zeal as its war against narco trafTickers and illegal drugs,” he said. In a report to Dominguez, the BIR said last month it shut down the premises of an unauthorized manufacturer of various cigarette brands in Lubao.

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Court disposes of bail plea of accused drug peddler Thursday February 9, 2017

Lahore

LAHORE: The Special Federal Court of the Anti-Narcotics Force on Tuesday disposed of a bail plea of an accused arrested by the ANF team.

According to sources of Customs Today, an accused namely Zaheer Ahmad was arrested by the AntiNarcotics Force in 2015.

The ANF recovered two kg hashish from his possession.

During the hearing of the case, counsel for the accused told the court that his client is innocent and not involved in drug selling. After hearing the arguments from both sides, the court disposed of the bail of the accused.

court fines Rs20000 each after deportation of 20 from greece LAHORE

M iMRAn MeHAR

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he Special Federal Court of Customs Taxation and AntiSmuggling has imposed a penalty of Rs20000 each to 20 Pakistani citizens.

According to details available to Customs Today on Tuesday, about 20 persons were presented before the court of Ch Aaqil Hussain. They were deported from Greece when caught there on illegal stay and on fake documents as well.

The customs judge announced the verdict on the case and set them free by paying Rs20000 each.

All the persons went to Greece illegally for getting employment there.

Meanwhile, The Customs Court has extended judicial remand of

online taxi services declared illegal by ptD fter their massive success in Pakistan’s major cities, online taxi services named Uber, Careem and A-One have been declared illegal by the Punjab Transport Department. The Secretary of the Punjab Provincial Transport Authority said these companies are offering cab services through mobile network technology without registering private cars with any regulatory body and obtaining fitness certificates and route permits which is causing great loss to the government. The notice further stated that Uber and Careem cars are registered in private capacity and, being utilized on commercial basis, is a violation of Section 2 (5), (20), Section 39 and Section 44 of the Motor Vehicles Ordinance-1965 as well as policy under the Rent-A-Car Service of the Punjab PTA. The authorities concerned have been directed to initiate prompt legal action against ‘illegal cab services in Lahore’for security of general public and recovery of the government revenue. –M Imran Mehar

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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.

After arresting them, the customs investigation team presented them before the court and got their physical remand for further interrogation. However, the hearing of the case has also been adjourned until next week.

customs ASo confiscates of illegally imported zinc

LAHORE

M HAYAt

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ustoms Anti-Smuggling Organization (ASO) Lahore impounded over Rs4.2 million

non-customs paid zinc, shampoo, DVDs and miscellaneous items in two different raids, ofTicial sources told Customs Today here. The sources said that on information the Anti-Smuggling Organization on the instructions of Assistant Collector Asim Awan constituted a team and intercepted a truck loaded with ille-

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gally imported zinc (sika) near Muridkay. The net weight of seized zinc is 10 ton.

The sources said that the zinc was being transported to Narowal from Gujranwala when the ASO team reached timely and recovered 10 tons of the non-customs paid zinc. The sources said that after being fully satisTied the ASO team under the supervision of Superintendent Mumtaz Ajmal Mian along with Deputy Superintendent Aslam Iqbal and Inspector Khalid Butt and other seized the illegal consignment. The sources said that the zinc was valued at Rs3.6 million.

The sources said that the zinc is used mostly in making parts of auto mobiles and items other such items.

The sources informed that the customs authorities registering a case have started investigations. Meanwhile, the ASO also seized over Rs 0.7 million non-duty paid shampoos, DVDs from a bus bearing registration no: 2762 at the Raiwind Road.

fto hears case filed by M/s tanveer Spinning LHc disposes of drug smugglers case ahore High Court (LHC) has dis- not eye witness and registered & weaving Mills against Rto-ii Lahore posed of bails of six drug smug- baseless cases of drug smuggling

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he Federal Tax Ombudsman (FTO) has adjourned the hearing of a case Tiled by M/s Tanveer Spinning and Weaving Mills (Private) Limited against Regional Tax OfTice-II (RTO-II) until the next date. According to the details, FTO Advisor Tariq Yousaf heard the case of Muhammad Asif Jamali, M/s Tanveer Spinning and Weaving Mills in which the counsel for the appellant argued that the Regional Tax OfTice (RTO-II) had failed to release the sales tax refund claims of the last

two years claimed by the company.

He said that the RTO collected excessive tax from the company during the last two years. They approached the commissioner concerned many times for issuance of refunds but the RTO ofTicials did not pay the refunds 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-II to clear the refund claims. –Sajid Nawaz

glers and accepted bails of four drug smugglers due to drug smuggling in very small quantity. Under the supervision of Justice Waqas Rauf Mirza two members bench heard the bails applications of appellant. The counsel of appellants Ghulam Fareed, Manzoor Ahmed, Zeshan Ali, Liaqat Ali, Shahbaz Anwar and Babar authorities have registered fake cases against the appellants and he was plead before the court for bail in drug smuggling case.

The counsels of appellant argued before the court that the police had

against the appellant. The counsels prayed before the court for bails of the appellant. Deputy Proctor General Rana ShaTiqe and Nuzhat Bashir presented the record of cases and argued that the cases of drug smuggling are registered in the different districts of Lahore, Faisalabad and others. Adding more that these accused are record holders and huge quantity of illegal drugs recovered from him. After hearing the arguments Lahore High Court (LHC) has dispose of bails of the drug smugglers. –Sajid Nawaz

pcA detects tax evasion by M/S Al-Hamd traders

D LAHORE

M HAYAt

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irectorate of Post Clarence Audit (PCA) has summoned M/s AlHamd Traders II Chundrigar Road, Karachi due to company’s involvement in duty and tax evasion of Rs 3,422,799 by 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 Collectorate during the calendar years 2012 and 2013 revealed that inadmissible concession of Sales Tax and Value Added Sales Tax under the SRO 1125()/2011 dated 31.12.2011, wrongfully availed on the import of tarpaulin i.e. sun shedding which is speciTically excluded from

that ambit of said SRO and hence was not entitled for such beneTit under the said SRO. It has been observed that importer had imported various consignments consisting of tarpaulin and got it cleared under PCT heading 6306.1210 with inadmissible concession under SRO 1125(I/201 1, dated 31.12.2011. Hence, it was said that the importers have short paid an amount Rs 3,422,799 sales tax, additional sales

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

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NIMASA seeks stakeholders’ contributions to port reforms WASHINGTON: The Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA) Dr. Dakuku Peterside has called on stakeholders in the maritime sector to make input in the ongoing port reform agenda of the present administration in other to reposition the maritime industry for greater efficiency.

Peterside made this call in Lagos when he hosted a delegation of the Editorial Board of the Nation Newspaper led by its chairman Mr. Sam Omatseye and the chief strategist of Epsilon Limited Mr. Amechi Chukwujama who came to brief him on preparation for a proposed port reforms conference in conjunction with the Federal Ministry of Transportation.

Russian arctic ports’ throughput increases by 40% ussia is intensifying its activity in the Arctic region by developing a number of large industrial projects and building new naval bases. As a result, the cargo volumes shipped through Russian northern ports grew significantly in 2016, reports The Maritime Executive. The port sector’s overall turnover also saw an increase. Murmansk, which is one of the largest Russian ice-free ports, is the absolute winner with an 50% year-on-year increase. The seaport handled 33,4 million tonnes of cargo in 2016. The oil terminal at Varandey showed a 21,6% growth as it handled 8 million tonnes of oil last year.

Dudinka port, which is operated mainly by Norilsk Nickel, had a 1,6% growth with a throughput of 1,2 million tonnes, and Sabetta, a new port built in 2013, handled more than 9 million tonnes. Russia is actively developing offshore installations along

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Ports & Shipping

Thursday February 9, 2017

Abu Dhabi ports deliver navigation courses

Dublin port shelves plans to reclaim land from the sea

ABU DHABI

he Dublin Port Company has shelved plans to infill 20 hectares of Dublin Bay to allow for future port expansion. Announcing the company’s annual results, chief executive Eamonn O’Reilly said the creation of a new ‘inland’ port near Dublin Airport would free up 30 hectares of land in the existing port campus, removing the need to infill the bay. The company is also planning to create a port ‘heritage trail’ and a public walkway in the city, under a review of its masterplan up to 2040. It comes as figures show that trade grew for the fourth year in a row, up 6.3pc, with 34.9 million tonnes of goods travelling through Dublin last year. Last August, the Dublin Port Company purchased 44 hectares of land near Dublin Airport. About 14km from the port, it will be accessed through the Port Tunnel and be known as ‘Dublin Inland Port’. It will store some 20,000 empty shipping containers, freeing up around 30 hectares in the port. Planning permission will be sought in the coming weeks. –CB Report

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cuStoMS BuLLetin RepoRt www.customsbulletin.com

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bu Dhabi Ports, one of only nine organisations to offer certiTied courses by the International Association of Marine Aids to Navigation & Lighthouse Authorities (IALA) worldwide, has conducted its Tirst IALA Aids to Navigation (AtoN) Level-2 training course to a group of external trainees from organisations and companies that provide maritime and offshore services in the UAE. The training course is based on IALA Level-2 Model Courses, the highest internationally accredited navigational standard, and was delivered to seven employees from the Critical Infrastructure and Coastal Protection Authority (CICPA) and Abu Dhabi Petroleum Ports Operating Company (IRSHAD)

by Abu Dhabi Marine Services (Safeen), an operating unit of Abu Dhabi Ports.

Captain Maktoum Al Houqani, chief marine services officer at Safeen, Abu Dhabi, said: “Abu Dhabi

Ports continues to make strong strides not only as the preferred provider of world-class ports and industrial zones services, but also as a vital contributor to the development of the local maritime industry through exclusively delivering internationally recognised training courses. We are dedicated to ensuring the sustainability of the industry by nurturing and developing the skills of our local talent

and becoming the first IALA-accredited organisation in the UAE, and the ninth worldwide, to offer IALA training courses is testament to our commitment.” The IALA AtoN training course provides participants with the necessary knowledge and skills of how to install, service and maintain marine Aids to Navigation components alongside an introduction to Vessel Tracking Services.

charleston extends gate hours after strike its Arctic coast. The projects include Lukoil’s Varandey terminal and Gazprom Neft’s Prirazlomnaya oil platform in the Pechora Sea and Novy Port offshore terminal in the Gulf of Ob. A 120% rise in liquid cargoes handling was the key growth factor, says Hellenic Shipping News Worldwide. As a result, the total volume of liquid cargoes amounted to 23,1 million tonnes, which is comparable to 26,6 million tonnes of dry cargo handled in the Russian Arctic in 2016. The sector’s overall turnover also grew by 6,7% last year, according to the Russian Maritime Ports Association. Total turnover has increased 77,4% since 2006. Far Eastern ports of Russia showed an 8,3% increase to 185,5 million tonnes in 2016. –CB Report

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WASHINGTON

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he Port of Charleston will offer extended gate hours for containers at its Wando Welch and North Charleston terminals this week to cope with the aftermath of a surprise labor slowdown on the waterfront that ground truck trafTic there to a halt. The South Carolina Ports Authority will offer extended gate hours for dry boxes at the Wando Welch and North Charleston until 9 p.m. Monday and Tuesday in an effort to help mitigate some lingering “issues motor carriers experienced Friday,” as well as cope with larger-than-average rail volumes on the waterfront, the port authority told JOC.com Monday. The work slowdown at the Wando terminal was orchestrated by the International Longshoremen’s Association local mechanics union in response

to a new automated gate system that was implemented at the terminal last summer and is in the very early stages of testing at the nearby North Charleston terminal. The technology, known as an “advanced gate system” or AGS, is similar to what’s already used to speed up and standardize truck turn times at major ports worldwide, from India’s Jawaharlal Nehru to the Port of Virginia. Labor groups, however, have expressed concern that the new technology will eliminate waterfront jobs.

Last Friday, a day before the port authority began testing the AGS technology at the North Charleston Terminal, union workers refused to use the new automated gate system technology at Wando Welch, forcing truck drivers there to stop for manual chassis inspections. The port authority told JOC.com that by 2 p.m. that afternoon the port authority

had managed to clear the backlog of truck trafTic that had mounted at the terminal, but apparently “issues” may have remained. “The extended gate hours is to further mitigate any issues motor carriers experienced on Friday,” port authority spokeswoman Kelsi Childress told JOC.com Monday, “as well as to handle expected heavier rail volumes.” Childress added that the port authority met with members of the local ILA mechanics union over the weekend.

“It was a productive meeting and we do not expect the disruption that occurred on Friday to happen again.”

Automation at terminal gates has emerged as a top ILA concern. The union has been wary of automated systems in which chassis are scanned by optical character recognition cameras instead of by workers in truck lanes. ILA President Harold Daggett said this month that automation will dominate the forthcoming negotia-

tions on a new East and Gulf coast dockworker contract to replace the current one, which expires Sept. 30, 2018. In other ports where the technology has been introduced, employers and the ILA have negotiated agreements to reduce the impact on jobs. Jim Newsome, South Carolina port authority president and CEO, has said that the AGS technology did not and will not eliminate any ILA jobs. Instead, workers were retained and trained to use the new equipment. This is the second time the AGS technology has been the root of delays and disruption at the Wando Welch Terminal. Due to a technical “threading” issue with the technology on the day of its rollout on June 20, dozens of big rigs were left lined up on the eastbound lanes of US Interstate 526 as port employees and truck drivers worked through what have been characterized as “kinks” and “bugs.”

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Mianwali ASO impounds non-duty paid Toyota Fielder worth Rs1.36m FAISALABAD: The Custom Anti Smuggling Organization (ASO) Mianwali station impounded a non-duty paid Toyota Fielder worth Rs1.36 million involving duty and taxes Rs7,10,620 during an operation.

According to details, the ASO team on the information provided by Additional Collector Muhammad Saeed Asad intercepted a nonduty paid Toyota Fielder, silver color bearing registration No: IDN6175 model-2004 automatic, near Musa Khail, Pindi Road, Mianwali.

Thursday, February 9, 2017

CUSTOMS BULLETIN

Sialkot customs generates Rs7.712b income from July 2016 to Jan 2017 SIALKOT SALeeM AwAn SHeikHu www.customsbulletin.com

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he Model Customs Collectorate (MCC), Sialkot, has generated Rs7.712billion income from July 2016 to January 2017 of the Fiscal Year 2016-17.The collectorate has collected customs duty of Rs2.7billion against the allocated target of Rs4.953billion during said period of economic year 2016-17. The MCC, Sialkot, has achieved 49 percent of the target of said period. The sale tax collected was Rs4.385billion against the earmarked target of Rs3.057billion.

The MCC, Sialkot, has achieved almost 132 percent target in this regard. The collectorate, Sialkot, has generated income tax of Rs78.244million during 2016-17.

The target of the income tax during above period was almost Rs74.06million. The customs has attained the target of 99 percent from the set target of the MCC, Sialkot. The Federal Excise duty of Rs22.269million was collected against the assigned target of Rs72.930million. Almost 24 percent of the assigned target has been accomplished during the third said period of Fiscal Year

2016-17. The MCC, Sialkot, has generated income of Rs2.847million from the additional sales tax

and other items of Rs3410.050million from the import of raw products during 2016-

117. An official of the MCC, Sialkot, said the target will must be achieved in five months. He

said the MCC, Sialkot, will not impair the tradition of surpassing the allocated targets.

SHc directs tax authorities to decide plea of wackenhut pakistan KARACHI

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he Sindh High Court (SHC) has directed the Commissioner (AppalsII) Inland Revenue, Karachi, to decide the appeal of the petitioner within four weeks.

The court took this action on a constitutional petition filed by M/s Wackenhut Pakistan Limited against the impugned

recovery of income tax of Rs 62.553 million, including default surcharges of Rs 11.360 million.

A two-member bench, headed by Justice Aqeel Ahmed Abbasi, was hearing the petition. During the hearing, both sides completed their arguments and the court disposed of the petition with following direction: “The Commissioner (Appeals-II) Inland Revenue, Karachi may decide the appeal of the petitioner within a period of four weeks from the date of receipt this court,

which may be communicated to the said commissioner (appeals) by the petitioner within one week. It is further directed that in case of any adverse action or order, if passed by the commissioner appeals against the petitioner, the respondents may not enforce the recovery of impugned demand for another period of 7 days from the date of receipt of such appellate order to enable the petitioner to seek further remedy in accordance with law.”

Earlier, counsel for the petitioner stated that it is engaged

in the business of security services in Pakistan and paying all liabilities accordance with law, however, the Additional Commissioner Inland Revenue E&C Range A&B, Zone-II issued notice to the petitioner for recovery of Rs62,553,798 including default surcharges of Rs11,360,667 in respect of income tax.

According to the petitioner, it approached to Commissioner (Appeals) and filed appeal along with stay application, petitioner apprehends, immediate and direct coercive action

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

its assets by the respondents.

Citing Sectary Ministry of Finance, Chairman Federal Board of Revenue, Commissioner Inland Revenue (Appeals-II), Commissioner Inland Revenue, Zone-III Large Taxpayer Unit and Additional Commissioner Inland Revenue E&C Range A&B, Zone-II as respondents, importer pleaded the court may declare that act of the respondents is illegal, mala fide and arbitrary, it also pleaded the SHC may restrain them from taking any coercive action against the petitioner.