March 1 layout 1

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Karachi, Wed March 1, 2017

ISLAMABAD

M FAIZAN

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irectorate General Customs Intelligence and Investigations (I&I) has sought some amendments in antimoney laundering laws and demanded more power in this regard. Director General Shaukat Ali has decided to take up the matter with the Federal Board of Revenue in details. According to the sources, the director general proposed that sections related to obtain court permission be-

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fore investigation of the money laundering cases should be omitted in the Money Laundering Act, and give full investigation powers to the Directorate General Customs Intelligence and Investigations and the other authorities concerned such as DG IR I&I, Federal Investigation Agency and National Accountability Bureau.

Directorate General recently faced some hurdles in court proceedings while pursuing money laundering case against super model Ayyan Ali, where Customs Special Court Rawalpindi rejected the requests of the Customs Intelligence three times for the investigation of money laundering charges against her and now the appeal against the Customs Court decision is still pending in the Islamabad High Court.

DG valuation issues order in revision no 301/2017 against VR No.1007/2017

ASO prevents biggest smuggling bid of cumin seeds in February

‘Energy crisis to be ended soon which will attract foreign investment’

NAB chairman reviews performance of Multan Bureau

Smugglers have fear of customs in their mind: Riaz Hussain

DGofCustomsValuationissuesOrderin RevisionNo.301/2017undersection25-D | See pAge 02 |

The ASO Islamabad confiscated 9000 kg of Indian cumin seeds valued Rs6.00m | See pAge 03 |

All economic indicators have improved considerably. With the completion | See pAge 04 |

Qamar Zaman, Chairman NAB, visited the NAB Multan to review its performance | See pAge 14 |

Customs I&I foiled smuggling attempts of miscellaneous goods worth Rs236.67m | See pAge 16 |

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Tax collection responsibility shifted to withholding agents Wednesday, March 1, 2017

National

ISLAMABAD: The Federal Board of Revenue has gradually shifted responsibility for tax collection to withholding agents due to the weak voluntary tax compliance. The share of withholding tax in overall income tax collection, for tax year 2105-16, rose to 68pc.

Withholding agents include businesspersons, consultants, exporters, companies, partnerships firms and government departments. However, the deduction of withholding tax amount by withholding agents is causing problems in various segments of the economy and society. Indirect withholding tax collection results in an increase in the price of various products and services.

Dg Valuation issues order in revision against Vr No.1007/2017

SIALKOT

KARACHI

cuStoMS BuLLetIN report

MuBeeN huSSAIN

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ritish Deputy High Commissioner in Karachi Belinda Lewis has said both Britain and Pakistan are determined to promote economic ties. She expressed these views while addressing an important meeting of the Sialkot exporters held at the Sialkot Chamber of Commerce and Industry (SCCI). SCCI President Majid Raza Bhutta, Dr. Mariyam Nouman (Chairperson SCCI Departmental Committee on Women Entrepreneurs), Senior trade officials of British High Commission and Muhamamd Ejaz Ghauri (SVC Pakistan Sports Goods Manufacturers and Exporters Association-PSGMEA) also attended the meeting.

Belinda Lewis said British investors and businessmen are taking keen interest in investing in Pakistan as UK is also intending to develop strong bilateral trade relations with Pakistan besides bringing the businessmen from both sides closer.

She said Pakistan should get full advantage of its GSP plus Status as time is ripe for Pakistan in this regard. Belinda Lewis remarked that the progress of Pakistan Stock Exchange is also attractive for the British investors.

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irector General of Customs Valuation issues Order in Revision No.301/2017 under section 25-D of the Customs Act, 1969 against Valuation Ruling No.1007/2017 dated 11-01-2017; the revision petition was Siled by M/S Al-Naqeeb Enterprises & Others.

The petitioner stated that aggrieved by the acts of the respondent director, whereby he has unlawfully, arbitrarily, without making a determination, has Sixed the customs values of the artiSicial jewelry made of plastics / ordinary iron and artiSicial jewelry made of electroplated steel etc. (hereinafter collectively referred to as “the artiSicial jewelry’) vide Valuation Ruling No. 1007 of 2017 dated 11.01.2017. The respondent director has acted in grave violation and in excess of the powers conferred upon him which is causing serious harm and loss to the petitioner.

Director General of Customs Valuation in his order stated that hearing in this case was Sixed on 25-012017. Mr.Rana Zahid Hussain, Advocate appeared on behalf of M/s Al-Naqeeb Enterprises, Lahore and others against Valuation Ruling No.1007/2017, dated 11-01-2017 for ArtiSicial Jewellery made of plastic/ordinary iron and electroplated steel etc.

uk to open British Business centre in Lahore: envoy

The Advocate further contended that a market survey was conducted of artiSicial jewellery at Lahore ofSice as main market is in Lahore and consumption in Punjab. The Survey was conducted by Lahore Valuation

ofSice but the Sindings were never disclosed. Principal Appraiser group was asked whether any survey was conducted. He told that ofSicially survey was conducted from whole sale market of Lahore.

The Director General Customs Valuation said that keeping in view the market survey conducted by Lahore ofSice and websites data; I am of the opinion that the customs values were determined on higher side.

NAB asked about plea bargain powers M

ISLAMABAD

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NA Chaudhry Bilal Ahmad Virk showed concern over the plea bargain by the NAB with the culprit involved in oil theft worth of millions of rupees and hinted that they would introduce a bill in parliament to amend the law.

“If the money belongs to the government of Pakistan then there should be no plea bargain at all,” he

said while presiding over a meeting of the National Assembly Committee on Petroleum and Natural Resources here. He said that he would bring a bill in the National Assembly to amend the law.

National Accountability Bureau (NAB) Director Ahteeram Dar briefed the committee about the theft of diesel worth Rs328 million from Tando Adam oil complex. Hussain Bukhsh Narejo and others have been named in this case. The NAB director informed the committee

that the case had been pending in the court of law since 2015. However, the government received Rs45 million after six accused struck a plea bargain. The meeting was informed that out of nine people involved in the theft two are low-ranking employees of the OGDCL, while seven are private individuals. Out of seven private individuals, one has managed his bail while six have entered into plea bargain, the NAB director said. From the six people, Rs45 million was recovered and

Rs31.5 million was paid to OGDCL. The remaining amount went to the government’s account. The committee was surprised to know that the NAB had given the accused a clean chit in the national wealth theft case.

How can a low proSile employee, a storekeeper, manage such a big theft alone, the committee questioned?

The committee said that a poor storekeeper was put behind the bars while the high ranking employees were not questioned.

Federal Minister for Petroleum

Shahid Khaqan Abassi expressed his dissatisfaction over NAB’s plea-bargaining and said the tool was used in the absence of concrete evidence.

He said that NAB was the only organisation in Pakistan that had the power of plea bargaining. However, he said, the court did not direct the NAB to do plea bargaining, as it was the Bureau, which recommend the plea bargaining. The NAB director tried to defend the plea bargain law, saying only the name needed to be changed and the rest was okay.

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AC Saima issues notices to two accused in non-duty paid truck case FAISALABAD: Additional Collector Customs Adjudication (ADC) Saima Aftab served show cause notices on two accused allegedly involved in Mazda Mini Truck smuggling case.

The collector issued notices to Zareen Khan and Majid Khan. The Faisalabad Customs Intelligence impounded the truck with Registration No: LZJ–6737 after the driver failed to show documents regarding the legal import of the truck.

The Customs Adjudication issued notices to both accused on the violation of Section 10-A. 89(1) and 156(1) of the Customs Act-1969.

The duty and taxes appraised is Rs1.5million.

Wednesday March 1, 2017

National

Faisalabad FIA arrests human trafficker, recovers rs3,80,000

ASo prevents biggest smuggling bid of cumin seeds in February

FAISALABAD

NAeeM SheIkh

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he Federal Investigation Agency (FIA) arrested a human trafficker Muhammad Ashraf a resident of Sargodha. Ashraf was accused of extorting Rs3,80,000 from the complainant Muhammad Abubakar on the promise to send him Dubai. According to details, the suspect, Ashraf, was involved in sending people abroad illegally. FIA Deputy Director Syed Imam Zaidi and Inspector Muhammad Fahad Shafi conducted raid and arrested the accused. FIA officials also recovered passports and several fake visas of different countries from his possession.

The officials sent the accused behind the bars after registering a case No: 106/2016 against him under section (U/S), 17/22 Emigration ordinance (E.O), 1979.

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customs seizes smuggled Iranian diesel KARACHI

S r khAN

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he Anti-Smuggling Organization of Customs Preventive with the collaboration of Mochko Police has foiled a bid of smuggling Irani diesel in the area of Mochko. According to details, the ASO team received an information that huge quantity of Iranian diesel is being smuggled from National Highway to the city and then move to other parts of the country. On a tip-off, a team of ASO with the support of area police has field their officers at Mochko Check-Post and during the checking, the authorities signalled a truck to stop and upon its checking it was found that it contains smuggled Irani diesel concealing into the hidden cavities of the truck. The Customs authorities informed Customs Today that 1000 liters of Irani diesel has been found from the hidden cavities of the truck, adding that the truck driver namely Dad Muhammad has been arrested from the spot.

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ISLAMABAD

tArIQ DerYA

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he Anti-Smuggling Organization (ASO) Islamabad conSiscated 9000 kilogram of Indian cumin seeds valued Rs6.00million. The said smuggled goods, being carried in three Bedford trucks, were intercepted at Ghora Gali (Murree). The accomplices of smugglers also tried to snatch the seized goods from the customs staff on the way to state ware house but they diverted their route from Murree to Bara Kahu and transported the consignment safely to state ware house.

According to details told by newly appointed Assistant Collector Preventive Majid Hussain Gaad that the action was very complicated and it was the biggest seizure intercepted during the month of February FY2016-17.

He told Customs Today that in pursuance of a tip-off provided by Collector Dr. Arslan, the ASO team intercepted three Bedford trucks with registration Nos: MDXA-082, GLT-6964 and GLT-1774 which were coming from Mirpur (Azad Kashmir). The possessor could not provide any legal documents regarding the possession and transportation of the smuggled item, so the ASO team seized the consignment but freed the trucks as the drivers showed the complete documentations.

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seizure was taken under the Customs Act-1969. The ASO registered a case against the accused and forwarded it to the Customs Adjudication for further proceedings. The team took part in the seizure comprised Deputy Superintendent Matloob Hussain Shah and Deputy Superintendent Rana Shakeel along with other supporting staff.

Meanwhile, The Anti-Smuggling Organization (ASO) Islam-

the possessor failed to provide any legal documents regarding the possession and transportation of the smuggled item, so the ASo team seized the consignment and forward the case to customs Adjudication

cM directs for facilitation of industrialists

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PESHAWAR

cuStoMS BuLLetIN report

www.customsbulletin.com hief Minister Khyber Pakhtunkhwa Pervez Khattak has said that local and foreign investors were taking keen interest to invest in the province due to cogent and vibrant economic policies of the provincial government.

The KP government believed in transparency and merit that is why the foreign and local investors have started showing interest to make

investment in this part of the country. He expressed these views while addressing a workshop on setting up of cement industries in the province.

The workshop was attended among others by KP senior minister for Health Shahram Khan Tarakai, Provincial Minister for Mineral Developement Anisazeb Tahirkheli, Provincial Education Minister Muhammad Atif Khan, Chairman CM Complaint Cell Dilroze Khan, Secretary Zaheer ul Is-

lam, Principal Secretary to CM Israr Khan, DG Minerals, high ranking officials, industrialists and investors.

The Chief Minister said today’s event meant to assure the applicants seeking minerals lease agreements that the KP government believed in giving the minerals leases on merit.

He on this occasion also directed the concerned ofSicials to provide best possible facilities to the industrialists wanting to establish cements plants in the province.

abad impounded worth Rs8.611million goods and nonduty-paid vehicles during 4th to 10th of February FY2016-17.

According to Deputy Collector ASO Anser Anies, the performance of the ASO was satisfactory during 2nd week of February 2016-17.

During said period, the ASO impounded worth Rs0.06million an NDP vehicle whereas ASO seized offending vehicles valued Rs5.0million during said period.

power cement’s earnings fall 24pc ower Cement, which is part of the Arif Habib Group, has posted an after-tax profit of Rs132 million in the second quarter ended Decemberfrom earnings of Rs174 million in the same period of previous year, according to a company notice sent to the Pakistan Stock Exchange (PSX) on Monday. Earnings per share (EPS) fell to Rs0.36 in Oct-Dec of financial year 2016-17.

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Pak-China ties to further strengthen in agri, education, trade: Dingbin FAISALABAD: Chinese Consul General Lahore Long Dingbin on said that China and Pakistan were enjoying time-tested relations that would be further strengthened especially in the fields of agriculture, education and trade to get benefit from each other experiences.

Addressed a meeting at the University of Agriculture Faisalabad (UAF) in which all UAF deans and directors participated, the Consul General said the agriculture ties had become one of the priority areas of collaboration between the both countries.

Wednesday March 1, 2017

Business

end to energy crisis to attract investment soon FAISALABAD

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ll economic indicators have improved considerably.

With the completion of new power houses and import of LNG, the energy crisis will be over that will automatically attract new Foreign Direct Investment (FDI) in Pakistan, said State Minister/Chairman Board of Investment Dr. Miftah Ismail. Addressing a function in Faisalabad Chamber of Commerce and Industry (FCCI) on Monday, he said just three or four years back the stock market was dwindling at 19000 points that has now crossed the barriers of 55000 points. Simi-

petroleum prices to go up sharply ISLAMABAD

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ased on presumed higher tax rate, the Oil and Gas Regulatory Authority (Ogra) on worked out a substantial increase in the prices of all petroleum products with effect from March 1 (tomorrow) for the next 15 days. In a summary sent to the government, Ogra recommended an increase of 2.7 per cent in the price of high-speed diesel (HSD), 4.15pc in petrol, 41pc in kerosene and 25.2pc in light diesel oil (LDO).

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larly, the GDP has jumped to Sive percent from 2.8 percent in 2013.

He said agriculture production has also recorded a sizeable increase that will help in containing inSlation

by around 3.5 percent. However the textile package may further increase its production up to 4.1 percent which is reasonable within the given circumstances.

He said despite all the positive indicators, the decline in exports is very alarming and government was taking necessary steps to stabilize exports. The energy crisis is a major impediment in attracting domestic as well as Foreign Direct Investment (FDI), he added. He said elimination of energy crisis will help attract FDI in a big way as the other factors including connectivity have also been resolved. He said China-Pakistan Economic Corridor is a major project and in its Sirst phase 51 billion dollars are expected to be invested out of which 34 billion dollars have been earmarked for the power plants. He clariSied that this is not a loan and these plants are being installed on the same terms and conditions as were allowed by Benazir Bhutto in 1994 and by Musharraf in 2002.

Business community hails 13th eco Islamabad summit B

ISLAMABAD

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usiness Community of Islamabad on Monday wellcome hosting of 13th Summit of Economic Cooperation Organization (ECO) by Islamabad to be held here from March,1.

The business community leaders expressed the hope that the conference would play an important role for pronmotion of enhanced cooperation between the member countries. “Pakistan will host the ECO

summit, which have important role for enhancing the cooperation between the members countries”, Senior Vice President, Islamabad Chamber of Commerce and Industry (ICCI) Khalid Malik.

He said that ECO had provided a platform to the member states for improving development and promote trade and investment opportunities between the member states.

The member states of the organization include Iran, Pakistan, Turkey, Afghanistan, Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan.

The ICCI SVP said the organization had huge potential to be emerged as new economic bloc for the benefit of the people in the region. He said that the ECO had now been expanded and comprised 10-member states. ICCI Senior VP said that all five Central Asian States (CARs) were also the member of ECO. “Pakistan has huge potential to enhance the trade with these countries”, he said adding the energy rich CARs would play important role by providing support in energy sector for local industries.

Imports from Afghanistan need to be through eIF: SBp KARACHI

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ll imports into Pakistan are required to be made compulsorily through Electronic Import Form (EIF), a statement issued by the State Bank of Pakistan (SBP) said. It said that the EIF was implemented with a view to curb the illegal and duplicate payments of imports from Pakistan by unscrupulous elements. In this regard, it was observed that due to peculiar nature of trade with Afghanistan through land routes, especially via Torkham and Chaman Borders, Pakistani importers were facing difficulties to carry out import transactions through ElF. In order to address these difficulties and to facilitate traders of the above regions, the procedure for registration of contracts and payments there against has been simplified. Now, the requirement for routing of shipping documents against registered contract through banks shall not be mandatory for imports from Afghanistan through land routes.

The Pakistani importers may now directly receive shipping documents from the Afghani exporters and get the goods cleared after attachment of Goods Declaration(s) with EIF.

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ILo to help organise AJk trade unions ISLAMABAD

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nternational Labour Organization (ILO) has assured to the Trade Unions in Azad Jammu and Kashmir (AJK) to develop plan for stronger role for the promotion of trade in the region.

ILO organized a capacity building workshop for the existing Trade Unions of AJK in Mirpur in collabo-

ration with Pakistan Workers’ Federation (PWF), said a press release here Monday.

Zahoor Awan, General Secretary, PWF, facilitated the workshop and guided the participants on promoting trade union movement in AJK on sustainable basis.

The workshop discussed issues including situation of Trade Unions & collective bargaining in AJK, challenges faced by workers in AJK, prospects for formation of a State-

level Federation of Trade Unions, capacity of trade union leadership, sustainability of trade unions and alliance of AJK Trade Union Federation with national (Pakistan-based) and international trade bodies.

More than 60 delegates from eleven (11) trade unions of AJK participated in the workshop. The Department of Labour AJK also contributed towards organization of this workshop.

With 4.6 million population in

AJK, the Labour Force Participation rate stands at 22.8%. As per Government records, there are 1,970 industrial units and six small and micro-industrial estates in 10 Districts of AJK. While inaugurating the workshop, Saad Gilani, Senior Programme Officer ILO explained that the Federal Tripartite Consultative Committee (FTCC) for Decent Work in Pakistan held in January 2016, decided that the special re-

gions including Azad Jammu & Kashmir (AJK), Federally Administered Tribal Areas (FATA), GilgitBaltistan (GB) and Islamabad Capital Territory (ICT) should receive further attention in terms of labour related issues.

Subsequently, the Department of Labour AJK and ILO started joint interventions starting with a dialogue on ‘Future of Work’ and a detailed ‘Situation Analysis of Labour Administration in AJK’ study.

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KARACHI

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ollector Model Customs Collectorate of Appraisement West Dr Farid Iqbal Qureshi has taken notice of the delayed clearance of consignments at Karachi International Containers Terminal (KICT) and directed the additional collectors and deputy collectors to take actions against those ofSicials who are involved in delaying the examination and assessments of the imported consignments.

According to details, a delegation of the importers and traders met Mr Qureshi at his ofSice and informed him about the issues and problems being faced by the importers at the terminal during the examination and assessment of imported consignments.

The importers were of the view that the examination and assessment ofSicers at the terminal were adopting delaying tactics, which is ultimately increasing the cost of doing business as the they have to pay extra charges in terms of demurrage and detention charges.

The Collector Appraisement West assured

Wednesday, March 1, 2017

the importers’ delegation that their grievances would be redressed shortly adding that the Collectorate would ensure best possible facility to the trade according to rules and regulations. Subsequently, the Collector-Dr Farid Iqbal Qureshi held a meeting of the additional collectors and deputy collectors and asked them to ensure smooth Slow of clearance of the imported consignments at terminal.

Meanwhile, The Model Customs Collectorate Appraisement West has collected Rs 25,037 million duty and taxes under the heads of customs duty, sales tax, income tax and federal excise duty during the month of January 2017.

The ofSicial sources told Customs Today that the Customs Appraisement West collected a total of Rs 25,037 million as duties and taxes in the month of January 2017 that included Rs 9,472 million under the head of customs duty, while Rs 10,960 million collected as sales tax, Rs 4,418 million as income tax and Rs 187 million as federal excise duty.

shi l Q u re a b q I Farid ional addit or-D r t e c h e t l l co s and ing of lector meet l a o c d l y ow he deput oth fl , o s r m o s t n s u re d collec m to e he importe e h t d t e f k as eo kIc t aranc of cle nts at e m n consig

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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

Dilemma of trade deficit

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he government is doing all the lip-service according to its capacity to ensure the nation that it is ready to burn midnight oil to increase the export of value-added goods and besides exploring new markets, it is also signing free trade agreements with various countries of the world for the purpose. However, in the wake of double-digit growth in imports and continuous decline in exports, the trade deficit has widened up to 28.7 percent during the first seven months of the current fiscal year. The latest trade figures show that the country has crossed its limits of trade deficit and registered a deficit of $17.42 billion during the period in review which is equivalent to 85 percent of the annual target. If this trend continues, the country will likely to have over $4.5 billion annual current account deficit as exports remained less than half of the annual target during the last seven-month and imports remained two-thirds of the annual projections.

The ministry of commerce is holding talks with Thailand in March to sign free trade agreement while the two sides have already completed a draft of agreement and discussed tari reduction modalities. The talks with Thai authorities have been going on since September 2015, held six round of talks, and still could not remove the trade barriers coming in the way of the agreement. Regarding a free trade agreement with Turkey, the two sides have completed five rounds of talks to remove trade barriers, but could not announce a deadline to sign the agreement. On another note, the expenses of negotiations and visits are continued to be borne by the taxpayers in the country. Again, fine words butter no parsnip. The talks between Pakistan and South Korea remained inconclusive so far on the matter of a free trade agreement between the two. The sides are now exploring the possibilities of an agreement by agreeing to hold a joint feasibility study. As a matter of fact, the government is not paying attention to provide relief to the local industry which has been struggling for its survival for the last several years. The energy crisis still persist despite the fact the current government has consumed three and half years of tenure. The problem is that it is still far from talking a proactive approach to overcome crisis.

Unless the government improves internal economic situation, the agreements with foreign countries will be a futile exercise.

opportunities for chinese investors A

LAHORE

Dr AFtAB AFZAL

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ccording to newspaper reports, Pakistan Ambassador to China Masood Khalid has told a group of 76 Chinese entrepreneurs to take advantage of business opportunities in Pakistan, especially in the textile and garments sectors.There is no doubt that Pakistan has a huge and developed textile and garments industry, but it could not fully utilize its potentials.

Pakistan is a safe destination for foreign investors, especially it is a promise land for Chinese investors due to close government-togovernment cooperation. Both the countries are already engaged in various development and infra-

structure projects, and cooperation in the industrial sector will not only be useful for the entrepreneurs but also for the Chinese government which wants to shift its economy from small industry to heavy industry. There are dozens of industrial and export processing zones in the pipeline as part of the China Pakistan Economic Corridor and full involvement of the Chinese investors in the industrial sector will be beneSicial for the two countries.

Under the China-Pakistan Economic Corridor, the countries have jointly launched a number of projects in energy, roads network, infrastructure, and industrial sectors.

The provincial governments are also planning to provide best business environment to Chinese investors and are building roads net-

works and other infrastructural projects.It is now up to the Chinese entrepreneurs to take advantage of enormous business opportunities offered by the provincial governments in the country. The general opinion of Pakistanis about Chinese is very good and around 100,000 Chinese nationals are already working in various development projects. The government is taking extra measures for the security and wellbeing of the foreign workers. The advice and invitation of the ambassador is one thing, and giving it to a practical shape is another. Apart from China, businessmen from many other countries are also willing to come to Pakistan, but ofSicial rigmarole comes as the biggest hurdle in the way of investment. There are huge markets in

Europe, Asia and Africa for the Pakistani products, but no serious effort has been made to explore new export markets. Pakistan’s exports have been on downward trajectory, and instead of exporting the value added goods, the government is encouraging the export of fruits and other food items. A country of 200 million people, Pakistan itself is a good food market and spends millions of dollars annually on the import of meat and vegetables from India, China, Iran and Afghanistan.

The policymakers should concentrate on creating industrial surplus, launch capacity building programmes for government ofSicials and encourage and facilitate local businessmen to launch joint ventures in collaboration with their Chinese counterparts.

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Tax reform seen to push PSEi beyond 8,000 WASHINGTON: Enacting the tax reform program this year is the key catalyst that would bring the Philippines to a new economic “supercycle” that could lift the main stock barometer beyond the 8,000, the chief of BPI Securities said. Michaelangelo Oyson, in an investors briefing last week, said while the economy had expanded by over 6 percent in the last six years, growth could accelerate closer to 9 percent if Mr. Duterte is able to deliver the tax package. While the first package of the Duterte administration’s tax reform program seeks to lower personal income tax and estate donor taxes, it also expands the coverage of the value added tax, increases the tax rates on automobile and updates excise tax on oil alongside other complementary revenues. Net yield in revenue is estimated at P162.5 billion, in turn seen boosting the government’s bid to usher in a golden age of infrastructure.

karachi traders urged to invest in mineral sector KARACHI

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resident of Azad Jammu and Kashmir Sardar Masood Khan has urged the Business and Industrial community of Karachi to explore the abundant opportunities in AJ&K’s mineral sector and set up industrial units there in order to provide the required expertise and skilled workforce which is capable to prune precious and semi-precious gemstones. Exchanging views during his visit to the Karachi Chamber of Commerce & Industry (KCCI) on Monday, AJ&K President added that some work was being carried out to only extract precious and semi-precious gemstones but this was not happening at

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the industrial level. Hence, the business community of Karachi must take advantage of this opportunity. Senator Saleem Zia, President KCCI Shamim Ahmed Firpo, Senior Vice President KCCI Asif Nisar, Vice President KCCI Muhammad Younus Soomro, Former Presidents KCCI AQ Khalil, Haroon Agar and Iftikhar Ahmed Vohra along with KCCI Managing Committee members were also present on the occasion. AJ&K President was of the view that Kashmir was blessed with abundant natural and mineral resources, which can offer lucrative opportunities to the businessmen and industrialists of Karachi. “The huge quantities of precious and semi-precious stones, marbles, graphite, coal, chalk, bauxite and many other mineral resources can not only be supplied to the local markets but can be exported to foreign markets as well”, he added. He said that the AJ&K government has initiated construction work of several new roads, which were being linked to China Pakistan Economic Corridor (CPEC) whereas many of the existing roads were also being revived in order to improve the overall infrastructure.

Wednesday March 1, 2017

Chambers

B2B talks between private sectors of pakistan & Azerbaijan at LccI A

LAHORE

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high-profile 20-member delegation of Azerbaijan had B2B meetings with their Pakistani counterparts and agreed to begin joint ventures in fruit, vegetables, textile, food, farming, packaging, restaurants & hotels and various other sectors. The LCCI acting President Muhammad Nasir Hameed Khan and Ambassador of Azerbaijan Ali Alizada were also present on the occasion. They were of the view that B2B meetings between the businessmen of Pakistan and Azerbaijan would help strengthen trade and economic ties between the two countries.

The Ambassador said that Azerbaijan had always supported Pakistan at all international fora. He said that growing cooperation between two countries at economic matters and defence front is a good sign. He informed the participants that another high-proSile delegation would also visit Pakistan in the start of March. He called for identiSication of trade and investment opportunities to exploit potential exist in the two countries.

He said that Azerbaijan is keen to strengthen trade & economic ties with Pakistan. He said that joint efforts from the business community of both sides can help tap huge potential exist in both countries. He said that bilateral trade between the two countries could be Slourished through exchange of trade delegations and holding of single country exhibitions.

The LCCI Acting President Muhammad Nasir Hameed Khan said that despite the fact that both

Pakistan and Azerbaijan have good diplomatic relations and enjoying strong bonds of Islamic brotherhood but these are not translated in stronger bilateral trade relations.

From 2013 to 2015, the values of total exports of Pakistan to Azerbaijan were recorded just as dollar 50 million, dollar 28 million and dollar 42 million respectively. So far as the imports from Azerbaijan to Pakistan are concerned, these are virtually negligible.

canadian chamber releases list to improve economic success in canada

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OTTAWA

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he Canadian Chamber of Commerce has released a list of ways to improve the economic success in our country, titled Ten Ways to Build a Canada that Wins. President of the Edmonton Chamber of Commerce Janet Riopel told the Alberta Morning News, what’s standing in Canada’s way.

“We can price ourselves right out of the market with very expensive carbon taxes, with global protectionism that sort of pushes us out.

We can be uneducated, we can have businesses that just don’t know how to work with world markets and then really take on the world.”

One of the things on the list, is

fighting global protectionism, particularly those opposing the recently approved Canada-European Trade Agreement. Riopel countered, CETA will open other markets for business. “We have tremendous signs still of uncertainty and even unpredictability from our partner to the south, the United States is our largest trading partner. So, we really need to look for other opportunities that are beyond our boundaries with other partners and I think CETA opens

that up.” Some of the other items on the list include, build digital skills to compete in the new talent economy, build Canada’s brand and grow small business to take on the world. The list also encourages the government to make trade between the provinces and territories easier.

“That’s going to create internal economic growth and job creation that we very much need,” Riopell said.

“The Edmonton Chamber’s been a long-time advocate of this, of freeing up internal trade.

He said that that Pakistani products are in great demand in Azerbaijan and many items are transported or delivered by Irani businessmen to Azerbaijan that is why these trade Sigures do not reSlect the actual trade.

In this context, it becomes very important that the business communities of both countries must interact with each other on regular basis so that direct trade links could be established.

primark import costs expected to hit sales margins rimark’s tightening margins could cause concern for its owner, Associated British Foods (ABF) and shareholders next week when the company releases its next trading update. Import costs have risen for the clothing retailer since the pound weakened, with 3 in every 4 of Primark’s purchase invoices being billed in US dollars. Yet the budget brand has resisted passing the cost onto its customers. Primark is understood to be preparing for difficult trading conditions over the next year, especially after its young women’s fashion lagged behind sales of menswear and kids clothing. Credit Suisse predicted that Primark’s half-year profits would increase by just £10m in 2017, up to £323m, according to The Observer. –CB Report

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Faisalabad FIA arrests human trafficker Wednesday March 1, 2017

National Mianwali ASo seizes non duty paid LeD lights worth rs2.9m FAISALABAD

NAeeM SheIkh

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FAISALABAD: The Federal Investigation Agency (FIA) has arrested a human trafficker named Habibur Rehman son of Faiz Muhammad who is a resident of Kamalia having CNIC No, 33302 2284280 5 on the allegations of taking Rs790000 from the complainant on the pretext of sending him to Oman for employment. According to details, FIA Deputy Director Syed Imam Zaidi and Sub inspector Muhammad Sohail Awan arrested the accused who was involved in illegal business of sending innocent people abroad, especially to the European and the Middle East countries after extorting huge amount from them.

Ihc adjourns hearing of some important tax matters last week T

ISLAMABAD

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he Customs Anti Smuggling Organisation (ASO) Mianwali has seized smuggled LED lights worth Rs2.9 million involving duty and taxes amounting to Rs6,26,923. The ASO authorities also impounded non duty paid Hino trailer worth Rs30,00,000.

Sources told Customs Today, that Deputy Collector Muhammad Rizwan received information regarding smuggling attempts on which he formed a team comprising Superintendent Chaudhary Sardar Muhammad, Inspector Muhammad Mansha Muhammad Umar Bhatti, and Sepoys Muhammad Feroz, Muhammad Anwar, Said Rasool and others. The team intercepted a Hino trailer bearing registration no. JU-6448 near Sara-eMuhajir Chowk district Bhakkar. All the good were unloaded in the presence of driver as well as staff of ASO Mainwali and recovered 6000-kilograms of LED lights made in China.

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customs Appellate tribunal hears 13 cases he Customs Appellate Tribunal division bench-II comprising Judicial Member Omer Arshad Hakeem and Member Technical Imran Tariq heard 13 cases and adjourned all the cases until the next hearing. The Customs Appellate Tribunal adjourned the hearing of 13 cases which includes Pakistan Electron Limited (PEL) versus Post Clearance Audit (PCA) Lahore, customs Lahore versus Punjab Impex, Safder Ali versus Directorate of Intelligence and Investigation Faisalabad, customs Faisalabad versus Iftekhar Ahmed. On Tuesday, the tribunal heard cases of Farhan Saleem versus Directorate of Intelligence and Investigation Faisalabad, Abdul Bari versus customs Faisalabad.

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he Islamabad High Court (IHC) adjourned the hearing of some important tax matters being contested by private appellants during recent week of February.

M/s Dewan Cement Limited, M/s Al Catel Lusent Pakistan Limited and M/s Hasas Engineering and Construction Company (Private) Limited had Siled the cases. The had challenged the recovery claims made by Sield ofSices of the Federal Board of Revenue (FBR).

The IHC benches, comprising Justice Athar Minallah and Justice Miangul Hassan Aurangzeb and another single bench comprising of Justice Aamer Farooq, heard the cases and adjourned.

The IHC bench comprising Jus-

tice Aamer Farooq heard the case of M/S Dewan Cement Limited. The company had challenged a show cause notice issued by the Large Taxpayers Unit, Islamabad. M/s De-

wan Cement Limited had prayed the court that the FBR ofSice had issued a recovery notice to the company which was illegal and without any lawful authority and an interim stay

may be granted against recovery proceedings. A division bench of the IHC adjouruned the hearing on a tax matter Siled by M/s Al Catel Lusent Pakistan Limited challenging a show cause notice issued by Deputy Commissioner Inland Revenue, Islamabad. The IHC bench, comprising Justice Athar Minallah and Justice Miangul Hassan Aurangzeb heard the case pending with the courts since 2014. M/s Al Catel Lusent Pakistan Limited had Siled case against LTU, Islamabad. Justice Aamer Farooq also heard the case of M/s Hasas Engineering and Construction Company Private Limited.

M/s Hasas Engineering and Construction Company Private Limited had Siled the reference in which the company had challenged a show cause notice issued by the Large Taxpayers Unit, Islamabad.

Sialkot customs to hold auction on March 13 T

SIALKOT

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he Auction Committee of Customs Intelligence and Investigation Department Gujranwala Region will hold an auction of non-customs paid vehicles and other items like cumin seeds, nylon ropes, tyres and cloths worth millions of rupees on March 13, 2017.

Director I&I of Department Zeba Hayee and Deputy Collector of Department Ali Zeb Khan ordered the auction.

The vehicles will be auctioned in the presence of Chairman Auction Committee Assistant Director Itrat Hussian and Members Auction Committee Superintendent Tariq RaSique and OfSice Superintendent Sajjad Rubbani.

The auction will be held on the premises of Customs Intelligence and Investigation Department OfSice located at Sethi Colony Rahwali, Gujranwala Cantt.

The department concerned referred the cases of impounded ve-

hicles and other items to the adjudication court for proceeding

while the learned court announced the judgment in favour

of department and authorized it to auction off the goods.

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Newly recruited 180 preventive officers’ training from mid of March KARACHI: Newly recruited 180 Customs Preventive Officers will get a 15-day training which will start from the mid of March.

The newly recruited Customs Preventive Officers will be trained by the highly professional and senior officers of the Pakistan Customs in the mid of March.

The source informed Customs Today that the last recruitments of Preventive Officers in Pakistan Customs have been made in 1992. The source also informed that the recent total strength of Customs in the category of Preventive force stands at 295.

During the training session, customs officers will pass on their skill and experience to the newly recruited preventive officers.

FBr authorised to get stock brokers’ info from NccpL KARACHI

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he Federal Board of Revenue (FBR) has been authorised to get information regarding stock brokers and investors directly from National Clearing Company of Pakistan Limited (NCCPL). According to Income Tax Rules, 2002 updated on February 2017, the information regarding member, broker, investor of a stock exchange, members of Pakistan Mercantile Exchange (PMEX), unit holders in mutual funds required by the FBR shall be obtained directly from NCCPL. Under the rules, investors of stock exchange, PMEX and unit holders in mutual funds are required to main-

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tain records, which included: (1) Every investor shall maintain accounts and records separately for each of his brokerage accounts regarding his securities business which sufficiently enable for verification of the discharge of his obligations under these rules. (2) Without prejudice to the generality of the foregoing provision, every investor shall maintain in particular the following accounts and records, namely:- (a) fortnightly ledger statements of the investor’s brokerage account or each brokerage account if there are more than one account whether in the investor’s own name or any benami accounts, generated by his broker; (b) fortnightly CDC statements of the investor’s CDC sub account or each CDC sub account corresponding to each brokerage account, if there are more than one brokerage account whether held in the investor’s own name or any benami accounts; (c) record of security holdings and their value carried in the investor’s brokerage account on 30th June of each year.

National

Documented financial system empowers national economy: Dc khawar Siddique D LAHORE

SAJID NAwAZ

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eputy Commissioner Withholding Zone RTO-II Khawar Siddique has said that documented economy system is vital to empower national economy. Documented economy playing a key role for the awareness of taxpayers to boost revenue collection and this problem must be solved on priority basis.

During an exclusive interview with Customs Today, Khawar Siddique said that due to the strict laws for tax collection by the government, and by their proactive implementation and execution, tax collection has increase. Under the laws Inland Revenue ofSicers can seal the business premises, conduct raids, seize the movable property and freeze the bank accounts of any tax defaulter. Deputy Commissioner Khawar Siddique said that he is currently monitoring withholding of income tax on exports, textile sector and salaries of employees from different organisations/departments.

As for as the monitoring of withholding of sales tax is concerned, cases of auto parts, plastic and tan-

neries etc also fall in the jurisdiction of RTO-II. Talking about the jurisdiction he said that he collects taxes from more than 3000 business units, including 527 companies, 229 association of persons (AOPs) and 2310 individuals. Deputy Commissioner said he collect taxes from Punjab government, Nestle, Sui Northern Gas Pipelines Limited (SNGPL), Coca Cola beverages, Muslim Commercial Bank (MCB), Allied Bank Limited (ABL), Bank of Punjab (BOP) and, CA Textile, Spin Cot,

Wednesday March 1, 2017

Shikhupura Textile and others.

Khawar told that he monitors withholding of tax and its deposit in government exchequer on salaries of employees through out the month also monitors the previous record and if any discrepancy is found then he takes action and collect taxes with the panelty.

Further said that for the collection of taxes he monitor salaries, purchases (taxpyers purchas what and from where) and rent payments under the section 155 etc of income tax ordinance 2001.

AtIr adjourns hearing of outstanding taxes ISLAMABAD

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n Appellate Tribunal Inland Revenue (ATIR) adjourned the hearing of tax matters challenging the issuance of show cause notices to M/s Aftab Traders and M/s Shalimar Recording and Broadcasting Company during the previous week of February.

ATIR Accountant Member Dr Ghulam Mujtaba Bhatti heard the cases. M/s Aftab Traders had contested the show cause notices issued by the field offices of the Federal Board of Revenue.

According to details, M/s Aftab Traders had challenged the recovery of outstanding income tax by the Regional Tax Office Islamabad. M/s Aftab Traders had submitted that the department had issued the demand for the tax year 2012 under the head of income tax under the provisions of Income Tax Ordinance-2001. The Federal Board of Revenue (FBR), officers of RTO including Commissioner Inland Revenue, Commissioner Inland Revenue (Appeals) and Appellate M/s Aftab Traders, prayed that the assessment order issued by the RTO officer was illegal, unlawful and without legal grounds.

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reference values for “silk fabric (Boski) issued

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KARACHI

MuBeeN huSSAIN

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he Directorate General of Customs Valuation has issued the reference values for “silk fabric (Boski)”.

According to the details, 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 reSlect values of the items as traded in the international market.

During the scrutiny of previous clearance data, it has been observed that “silk fabric (Boski)” falling PCT

heading 5007.9000 is being assessed in different values and certain transactions are on very low side. Now customs values of silk fabric (Boski) is determined at US$51.66 per kilogram. Directorate General Valuation after carefully examining the clearance data also conducted market inquiries to verify the authenticity of declarations. Online prices were also obtained to corroborate the Sindings of the market surveys. The values are, however, for reference/guidance only and Sinal assessment may please be made after considering other factors which have bearing on the customs value.

The clearance Collectorates may like to consider the values given

above before Sinalizing the assessment of the subject items. If further Sine-tuning in speciSications and ensuing values are required, Collectorate may forward a reference along with detailed justiSications and worksheets so that requisite adjustments are accordingly issued. The directorate also stated that in case of any grievances, the importer can Sile a request to the Directorate substantiating evidences/record for reconsideration/review as the value is valid for 90 days from date of issuance.

Meanwhile, The Directorate General of Customs Valuation has revised the Customs values of wallpapers through Valuation Ruling No 1048/2017 under Section 25A of

the Customs Act, 1969.According to details, The Customs values of wallpapers were determined vide Valuation Ruling No.680/2014 dated 2608-2014. The Valuation Ruling was more than two years old and needed to be revised in line of current price trends in the international market, exercise was conducted to re-determine Customs values of wallpapers afresh. Stakeholder’s participation in determination of Customs values: Stakeholders’ meetings were scheduled on 28.06.2016, 04.07.2016, 11.08.2016 and 16.02.2017. All stakeholders were requested to submit the following documents: Invoices of imports during last three months.

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AkzoNobel revenue falls 3% in Q4, 2016 Wednesday February 1, 2017

World

AMSTERDAM: AkzoNobel published the Q4 and the full-year 2016 results. The company’s revenue fell by 3% year on year to EUR3.46 billion in the fourth quarter while earnings before interest and taxes (EBIT) were 12% lower at EUR235 million.

AkzoNobel’s net income fell 34% year on year to EUR133 million in the fourth quarter 2016, as restructuring costs and weaker demand from the oil and gas and marine industries.

Revenue down 4% due to unfavorable currency and price/mix effects EBIT up 3% at EUR1,502 million (2015: EUR1,462 million), positively impacted by volume growth, continuous improvement and lower costs.

thai drug cops make ‘cocaine lotion’ bust at airport

hong kong trade deficit narrows in January HONG KONG

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BANKOK

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n Ecuadorian and a Russian have been arrested for attempting to smuggle 2.3kg of cocaine into Thailand mixed into bottles of skin lotion, police.

Acting after a tip-off from Interpol, Thai drug police held the Ecuadorian woman after she arrived on a Slight from Peru at Bangkok’s main airport on Monday. A search of her luggage uncovered six containers of body lotion laced with cocaine, said narcotics ofSicer leading the case, Wutthipong Phetkamnerd.

“It was mixed in with the skin moisturising lotion a new smuggling tactic to avoid arrest,” he told reporters, without detailing how the would-be trafSickers intended to extract the cocaine from the lotion.

After her arrest the woman led police to a Russian man who was

Netherlands legalizes cannabis cultivation he Dutch lower house of parliament approved the cultivation of cannabis on Tuesday. The bill must also pass through the Senate to become law, while the public prosecutor has raised concerns it may be contravening international law. However, a bill that makes it in the lower chamber is rarely blocked in the Senate. Although the possession and use of cannabis is allowed in the Netherlands, the new bill will partially legalize production. The law is intended to reduce the reliance of coffee shops from criminal networks. A Radboud University study published in 2016 suggested that legalizing cannabis production could reduce the spread of legionella bacteria, promote environmental sustainability, and reduce gang violence. The law has the support of several local councils, not to mention the Coffee Shop Union. –CB Report

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waiting for her at a hotel. Both have been detained while ofSicers investigate the case the latest drug bust in a country that serves as a key transit stop for contraband. Thailand is a major drug market as well as transit route, with a particular penchant for “yaba” meth pills produced in in the notorious Golden Triangle region bordering Laos and Myanmar.

While drug seizures and arrests of low-level couriers are common, it is rare for Thai police to take down cartel kingpins. Yet last month Thai cops arrested 42-year-old Xaysana Keopimpha, a Laotian who they allege is a high level drug dealer behind a network that ran drugs from the Golden Triangle through Thailand and into Malaysia.

After strong growth, South African potato exports down 18pc

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outh Africa is self-sufSicient in potatoes. 2015 was an exceptionally good year with a harvest of 250 million 10kg bags, which fell to 214 million 10kg bags in 2016 due to drought and excessive heat. This year it appears as if the area under potatoes is somewhat less, but a better harvest than last year can be expected, says Dr André Jooste, CEO of Potatoes SA. Approximately 50 000 to 54 000ha is annually planted with potatoes, most of this in the Eastern Free

State Province under dryland conditions, followed by Limpopo Province, under irrigation. Limpopo produces the largest volume of potatoes. Domestic prices are currently slightly higher than in previous years (excluding 2016), due to supply to the market, reduced plantings and climatic conditions. There is thus far no evidence of damage to potatoes by the infamous fall army worm, currently ravaging maize and other cereal crops in Southern Africa. –CB Report

ong Kong’s foreign trade gap decreased in January from a year ago, as imports fell faster than exports, Sigures from the Census and Statistics Department showed Monday.

The trade deSicit narrowed to HK$12.34 billion in January from HK$17.48 billion in the corresponding month last year. In December, the shortfall was HK$45.5 billion.

Exports dropped 1.2 percent yearover-year in January and imports slid by 2.7 percent. “Looking ahead, the recent improvement in global economic conditions, if continued, could render support to Asia’s and Hong Kong’s exports. Yet, the trading environment is still subject to considerable uncertainties arising from the future US trade policy direction, US interest rate normalisa-

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tion and unfolding of Brexit,” a government spokesman said. “Fragile fundamentals of some major advanced economies and heightened geopolitical tensions in various regions are also sources of concern.

The Government will continue to monitor the situation closely.”

Meanwhile, The latest statistics released by the Hong Kong Census and Statistics Department indicate that the country’s steel scrap exports increased sharply during the month of December last year, upon comparison with the same month a year before. However, the exports declined when matched with the prior month. The steel scrap exports

by Hong Kong registered second consecutive month of decline during the month. The yearly exports by the country surged higher in 2016.

According to statistics, Hong Kong exported 97,000 tons of steel scrap during December 2016. The exports increased signiSicantly by over 29% when matched with those during the same month a year before.

NZ warns pM over company tax alcolm Turnbull was looking for some staunch moral support from Bill English for company tax cuts, but got a lukewarm reply. The Australian government has made a 10-year cut to company taxes the centrepiece of its economic plan, with the prime minister arguing it would make the country more attractive for investors. At a joint media conference with Mr English in Queenstown, Mr Turnbull put on his journalist hat to ask his NZ counterpart to comment on how important it was to have a competitive company tax rate.

We think it is really important to

signal that we want reinvestment in businesses, because that is what grows the jobs and grows the capacity,’ Mr English said of his country’s 28 per cent rate – two points lower than Australia’s. ‘We had hoped it would attract a large number of Australian businesses across the Tasman, but that hasn’t quite happened yet.

We might have to lower it again.’

Asked about the possibility of higher taxes in the May budget, Mr Turnbull told reporters: ‘We have no plans to increase tax.’ ‘All of our plans for tax were set out in the budget last year and they included a reduction in personal income tax. –CB Report

korea logs trade surplus for 60 straight months

K SEOUL

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orea posted a trade surplus for the 60th straight month in January at $2.8 billion, the customs agency said.

According to the Korea Customs Service (KCS), the country’s exports stood at $40.3 billion, while imports

came to $37.5 billion. With the $2.8 billion trade surplus, the country has remained in positive territory since Feb. 2012. January’s exports and imports each grew 11.2 percent and 19.7 percent from the same month last year. The KCS said this is the Sirst time for exports to chalk up doubledigit growth January 2013. Breaking exports down, semiconductors and petroleum products grew 41.5 per-

cent and 66.3 percent, respectively.

The KCS attributed the growth in semiconductors to growing demand for integrated circuits and memory chips in Hong Kong and China. Petroleum products also gained ground in China, Australia and Japan. In imports, energy products and semiconductor manufacturing devices showed a steep rise, while machinery and cars declined. However, January’s

surplus showed a sharp decrease from $6.77 billion in December because of a drop in exports. Outbound shipments plunged 10.6 percent in January from a month ago while imports slightly declined by 2.1 percent during the same period of time. A KCS ofSicial said January’s slump stemmed from the week-long Lunar New Year holiday and exporters’ tendency to push out inventory in December.

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Singdollar high against Ringgit, crossing RM3.16 mark

World Customs

SINGAPORE: The Singapore dollar crossed the RM3.16 mark today (Friday, Feb 24), reaching another new all-time high, according to Bloomberg data.

The Singdollar’s peak against the ringgit was at around 12.45pm, when S$1 was trading at RM3.1687. As of 5pm, the exchange rate had eased back to RM3.1630. Asian currencies edged higher on Friday, as uncertainty over details of the Trump administration’s tax reform plan weighed on the US dollar. The Singapore dollar set a high of 1.4041 per US dollar at one point, its highest level since Nov 10. The US dollar faltered after US Treasury Secretary Steven Mnuchin, in his first televised interview since taking office, offered few fresh details on the administration’s tax reform plans.

French organic market raises 20% in 2016 he Agence Bio reported the organic food market in France increased by 20%, reaching €7 billion in 2016.

Whilst in 2003 half of the population had never eaten organic food, today seven out of ten consume organic produce at least once a month. 15% of the French population consumed organic produce on a daily basis in 2016 compared to 10% the previous year. Health is the first reason for the increase in organic consumption which consumers choose for its nutritional quality, better taste and satisfaction in contributing to environmental protection. Consumers trust the organic specifications, controls, absence of GMO’s, artificial products and coloring and the well-being of animals. Organic vegetables are the number one product, followed by dairy products and eggs, delicatessen products and meat. Organic acreage has increased by 16% in a year, reaching 1.54 million hectares. There has also been a 12% increase in the number of organic farms (now over 32,300). –CB Report

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Italy Inc bets on expansion in uS he climate isn’t the easiest. Economic uncertainty and political unknowns abound on both sides of the Atlantic.

In the US with the new administration of Donald Trump and its protectionist and isolationist tone. And in Europe, rocked by Brexit and anxiously awaiting elections in nations that are key to the future the Union. But most of all for Italy Inc, whose companies are determinedly betting on their own excellence despite their often niche positions. Confronted with uncertainty, they must focus on attracting international investment and on expanding their presence in the US with acquisitions and growth on US soil. This is the central message of the sixth annual “Italy Meets the United States” summit, where panels of Italian business leaders discussed business prospects Stateside in front of an audience of about 300 at the Time Warner Center in Manhattan. –CB Report

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2 Singaporeans jailed overseas for drug offences

WELLINGTON

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wo Singaporeans caught smuggling drugs were jailed in separate cases in New Zealand and Australia.

Sole breadwinner Mohamad Nazjib Abdul Majit said he tried to smuggle 100g of methamphetamine in his underwear because of Sinancial stress related to his business.

He was caught in March last year by Customs ofSicers at Auckland Airport. In judgment grounds released on Feb 1, New Zealand District Court judge S. Patel said Nazjib’s detention and conviction had caused Sinancial hardship and upset his

family in Singapore. The judge took this into account when he sentenced Nazjib to 30 months in jail.

Nazjib was contacted by New Zealand-based drug supplier Thomas Cheng via phone and social media. Cheng suggested that Nazjib swallow 200g of the drug to smuggle it into New Zealand for NZ$4,000 (S$4,100) but Nazjib refused.

The judge said: “You now understand the negative consequences of methamphetamine and you say that having regard to seeing the Sirsthand damage that it has on other people incarcerated along with you.”

The court noted that Nazjib was a Sirst offender who would have “considerable difSiculty” in serving a jail term in New Zealand as he has no family support there.

The judge gave Nazjib, who could

have been jailed for 54 months, a sentence discount of 12 months, given the hardship he would face serving time as a foreigner. Nazjib was given a further discount of 12 months for having pleaded guilty at the earliest opportunity. Separately, 59-year-old Lum Fook Loong failed to convince a court in Western Australia that he had helped sell methylamphetamine on two occasions in 2011 because of threats against his family. Lum helped sell a total of 56g of the white crystal in two deliveries for A$28,500 (S$31,100). In judgment grounds released last week, the appeal court in Western Australia noted Lum had “intially refused to be involved in the delivery of drugs because he came from Singapore, where dealing in drugs carried the death penalty”.

Wednesday March 1, 2017

car imports from ASeAN states explode in Jan ccording to figures released by the Vietnam Customs Office on Monday, Viet Nam imported 3,408 cars from the two countries in January, accounting for 62.8 per cent of total imports of cars with nine seats or less. “In just the first month of the year, the volume of imported cars of nine seats and less equalled 45 per cent of total imports in 2016,” the office said.

The spike has been attributed partly to a drop in import tax on this auto segment (nine seats and less) for ASEAN members, from 40 per cent to 30 per cent, from January 1, 2017.

The drop in import tax is part of the 2016-2018 ASEAN Trade in Goods Agreement. It is expected that by 2018, when the import tax becomes zero per cent, prices will fall a further 20-25 per cent over current levels. Thailand and Indonesia are the only two countries from the ASEAN bloc that exports cars to Viet Nam. In January, Thailand shipped 1,585 cars of nine seats and less worth US$31 million to Viet Nam, an increase of 55 per cent in volume and 209 per cent in value over the same period last year. Meanwhile, auto imports from Indonesia have seen a major explosion. Indonesia exported 1,823 units worth $35 million in January. In the same period last year, just one car priced at $10,000 was imported. Viet Nam imported a total of 7,400 cars in January. –CB Report

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kitron’s revenue amounted to Nok 570m in Q4

K OLSO

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itron ASA today reported solid growth, improved proSit and increased dividend. Kitron’s revenue in the fourth quarter amounted to NOK 570 million, compared to 525 million in the fourth quarter last year. Operating proSit (EBIT) was NOK 34.1 million, compared 33.6 million last year.

Net proSit amounted to NOK 25.4 million, an increase from 22.6 mil-

lion. This corresponds to earnings per share of NOK 0.14, compared to NOK 0.13 last year. The Board of Directors proposes a dividend of NOK 0.25 per share for 2016. Last year the dividend was NOK 0.21.

“We had solid growth in revenue and order backlog in the fourth quarter, pointing the way to expected growth in 2017. We also keep up our projects on operational improvement, gradually improving underlying proSitability and capital efSiciency. Lastly, we relocated our facility in Sweden during the fourth

quarter, concluding major upgrades of our main facilities in Lithuania, Norway and Sweden over the past three years, leaving us in a very competitive position.”

Kitron will host a Capital Markets Day later today, at which the underlying business improvements will be described in more detail. See separate stock exchange notice for highlights. The event will be webcast, and the presentation material will be made available at Newsweb.no and Kitron’s web site.

Kitron’s revenue for the fourth quarter increased by 9 per cent compared to the same period last year. Adjusted for foreign exchange effects, the increase was 13 per cent. The pattern from the preceding quarters continued, with the market sectors Defence/Aerospace and Industry growing compared to the same quarter last year. The order backlog ended at NOK 1 019 million, an increase of 4 per cent compared to last year. Adjusted for foreign exchange effects, the increase was 9 per cent.

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FIA offloads 10 people travelling on fake visas Wednesday March 1, 2017

Lahore

LAHORE: The Federal Investigation Agency (FIA) offloaded 10 passengers from a plane attempting to leave the country using fake work permits at Lahore airport.

The FIA sources said that 10 people offloaded from the Pakistan International Airline (PIA) Flight PK-898 at the Allama Iqbal International Airport were being interrogated. In the preliminary investigation, the detainees revealed that they had acquired the work permits after paying a huge sum of money to a travelling agent based in Lahore Federal Investigation Agency (FIA) has seized a shipment of 15,000 stents.

According to FIA officials, the stents have been imported from Belgium by a pharmaceutical company, Pak Punjab Cardex Medicl System.

112 sepoys join customs stations after completion of training

NAB chairman reviews performance of Multan Bureau

LAHORE

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M hAYAt

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ewly recruited 112 Customs sepoys have joined their duties and reported to their respective station following the completion of their month long training.

Sources told Customs Today that these sepoys have given their joining at the sections and started working at various station including Customs Preventive, Customs Appraisement, Customs Post Clearance Audit, Customs Adjudication and others. The newly appointed sepoys were sent on training arranged by the Directorate General Training and Research.

A sepoy told Customs Today that they enjoyed their training and were taught so many subjects which would help the sepoys in their professional

chief commissioner-Ir tasneem promoted to BS-22 asneem Rehman, an Inland Revenue Service officer, has been promoted to BS-22 in the same service and posted as Chief Commissioner-IR, Corporate Regional Tax Office, Lahore with immediate effect, till further orders.

The officer was promoted in pursuance of approval of the competent authority conveyed vide Establishment Division’s U.O. No. 7/1/2006CP-6 dated According to the notification, if the officer is drawing performance allowance, she will continue to draw the same on her promotion.

Tasneem, pursuing the Board’s Notification No. 0525-IR-I/2017 dated 20.02.2017, relinquished the charge of the post of Chief Commissioner-IR (BS-21), Corporate Regional Tax Office, Lahore, with effect from February 20 and assumed the charge of the same post of BS-22. –CB Report

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life. The training was held at the Civil Defence Training School while it was orgnanized under the supervision of Director Seema Shahzad and deputy director also looked after the traning of the newly appointed Customs sepoys. A senior customs ofSicial said that the sepoys were trained on modern lines and they are now capable to cope with the new challenges which the customs ofSicials have to go through. As the course was exclusively designed for the customs sepoys by DGTR (Customs) Karachi and is duly approved by the board. The sepoys were taught customs law, rules, procedures etc. in addition to other relevant modules. It is pertinent to mention here a signiSicant event in the history of Pakistan Customs, when as many as 113 newly recruited sepoys from multiple directorates and collectorates of the Customs Central Region joined the two months specialized training programme at Lahore.

LAHORE

M IMrAN MehAr

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amar Zaman Chaudhry, Chairman NAB, visited the NAB Multan to review its performance on the basis of annual inspection conducted by Chairman’s Inspection & Monitoring Team (CI&MT) at the NAB Multan Bureau. The NAB’s CI&MT team was deputed to conduct the annual inspection of the NAB Multan for the year 2016. The annual inspection was carried out from February to review and evaluate the performance of NAB Multan Bureau on the basis of newly introduced Partly QuantiSied Grading System (PQGS).

Senior Member, Chairman’s Inspection and Monitoring Team (CI&MT) along with his team, conducted the said annual inspection for the year 2016 and gave a de-

customs court adjourns hearing against alleged gold smuggler

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he Special Federal Court of the Customs Taxation and Anti-Smuggling has extended the date of hearing of a case of gold smuggling against the accused who was arrested by the customs authorities from Lahore Airport.

Sources told Customs Today that a suspect, Ibrar Islam, was arrested by the customs preventive from the Allama Iqbal International Airport while he was travelling to Muscat. During the

search of his luggage, the customs officials found 550 gram gold he was trying to smuggle from Lahore into the Gulf state. The customs registered a case against Ibrar and seized the item.

The Customs Investigation and Prosecution team presented him before the customs court which approved his physical remand for three days. The customs authorities have registered a case against him under the Pakistan Customs Act-1969. –M Imran Mehar

tailed brieSing to Chairman NAB about the annual inspection done

by CI&MT and highlighted the strengths and weaknesses of NAB Multan Regional Bureau. He informed the press that on the directions of Qamar Zaman Chaudhry,

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Chairman NAB Partly QuantiSied Grading System, (PQGS) had been devised in 2014. Under this Partly QuantiSied Grading System (PQGS), the performance of all NAB’s Regional Bureaus is being conducted since 2014 at the uniform criteria.

customs court hears 17 important cases

he Special Court of Customs Taxation and Anti-Smuggling heard 17 important cases on Tuesday and adjourned most of the cases until next hearing.

According to the details, 17 cases of different types, including pre-arrest bail pleas Siled by different accused persons were scheduled for hearing on Tuesday. The court adjourned bail pleas of Azhar Mehmood and Shahbaz until next hearing. The cases, including tax evasion, customs, smuggling and narcotics, were scheduled for the day. A case of Tariq Kazmi who is allegedly involved in mobile smug-

gling was also scheduled for the hearing. The cases of Lahore, Gujranwala, Sialkot and Jhelum were scheduled for the day.

Meanwhile, The Special Federal Court of Customs Taxation and AntiSmuggling has imposed a penalty of Rs20000 each to 14 Pakistani citizens. According to details available to Customs Today, about 14 persons were produced before the Customs Court of Chaudhary Aaqil Hussain.

All these persons were deported from Greece when they were booked by the authorities due to over stay and keeping forge and fake documents. –M Imran Mehar

customs Appellate tribunal hears 50 important cases

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LAHORE

SAJID NAwAZ

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he Customs Appellate Tribunal heard 50 cases on Monday. The members of all the benches from Lahore, Karachi, Islamabad and Peshawar heard cases at Lahore bench and adjourned all the cases until next hearing. Chairman Cus-

toms Appellate Tribunal established special benches to decide the cases.

The Customs Appellate Tribunal’s special division bench, comprising Member Judicial Bench-II Karachi and Member Technical Bench-II, adjourned 12 cases of O.S Crop versus Customs Lahore, Ikram International versus Customs Lahore, Pak Precise and Technibiz verus Customs Lahore, Collector Customs Sambrial versus

Service Independent, Punjab Arms versus Customs Lahore, Director PCA Lahore versus Super Asia Motors, K.D Enterprises versus Customs Lahore, Hamza Traders and Umer Hayat versus Customs Lahore and Shakir Ullah versus Director Lahore. Special Division Bench-Lahore Member judicial Omer Arshed Hakeem and Member Technical Imran Tariq heard the cases of Tahir Rauf

versu Intelligence Faisalabad, Directorate Lahore versus Shaukat Ali, Aamir Muhammad Khan versus ZulSiqar Pathan versus Directorate of Intelligence and Investigation Lahore, Ishtiaq Ahmed and Farhad Ali versus Directorate Multan, Faheem Traders versus Customs Lahore, Kashif Malik versus Customs Multan, two cases of Sitara Textile versus customs Lahore.

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Port of Indiana-Burns Harbor has best three-year run in history WASHINGTON: Tonnage declined by about 7 percent at the Port of Indiana-Burns Harbor last year, but it was still the port’s third-best year in the last decade. The deepwater port on Lake Michigan handled 2.6 million tons of cargo in 2016, down from 2.8 million tons in 2015. More than 8.6 million tons of cargo have passed through the port since 2014, the best three-year run in its 52-year history. “Fourth-quarter shipments were especially strong for us and included two export ships of Indiana grain, raw materials for the steel industry as well as several large-dimensional cargoes,” Port Director Rick Heimann said. Last year, the port invested $2.5 million in infrastructure projects, including dredging, the replacement of 2,000 feet of railroad track and the addition of more docks for handling international vessels.

port launches first of two big expansion projects he Port of Virginia took a big step on Monday, setting in motion work on the first of two big expansion projects that will boost cargo-container capacity significantly. Survey crews started preparations to expand the rail/container-stacking yards at Virginia International Gateway in Portsmouth, the second-largest of the port’s two big container terminals. When work is completed there and at the port’s other big facility – Norfolk International Terminals – in 2020, the port will have grown its cargo-container capacity from roughly 2.7 million containers to roughly 4.4 million. The industry standard is 20-foot units, or TEUs. “This is an important day in the history of the Port of Virginia,” said John Reinhart, the executive director and CEO of the Virginia Port Authority, in a statement. “It is an impor-

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tant milestone in our effort to increase sustainability and to prepare this port for what is to come.

We are adding capacity now so we can handle the cargo that will be coming to us in the very near future.” In 2016, the port moved more than 2.65 million TEUs. The Portsmouth terminal now can handle a little more than 1.1 million TEUs. When the expansion work is done in three years, it will be able to handle roughly 2 million units. Expansions of the stack-container yard and the rail yard are two of the components of the work to unfold at Virginia International Gateway. In addition, 650 feet will be added to the wharf, which will get four more Suez-class cranes . Work on the wharf is expected to start March 15 and wrap up next winter. –CB Report

Ports & hipping

Wednesday March 1, 2017

port of kingston ordered to pay $166k in lawsuit

Somaliland agrees to uAe naval base in northern port

PORT ORCHARD

omaliland, the breakaway northern region of Somalia, on approved the establishment of a UAE naval base on the coast of the Gulf of Aden. The UAE submitted a formal application last month for permission from the Somaliland government to open the base in the port of Berbera, about 250 kilometres south across the Gulf from Aden in Yemen. Somaliland parliament’s voted overwhelmingly in favour of the base, which president Ahmed Silanyo said would benefit the territory and help create jobs. However, the plan has been opposed by the neighbouring countries of Ethiopia and Djibouti, according to local reports. In Sunday’s vote 144 legislators supported the military base, two voted against and two abstained. Nine others opposed to the base shouted against Mr Silanyo and were led out of the chamber by soldiers. The plan for the military base follows a multimillion dollar, 30-year contract for the UAE ports operator DP World to manage Berbera port, Somaliland’s largest. –CB Report

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Kitsap County judge has ordered the Port of Kingston to pay out roughly $166,000 to a former Kingston business owner. Superior Court Judge Jeffrey Bassett ruled Friday afternoon that the port owes Beth Brewster about $75,000 in penalties and about $91,000 in legal fees and other costs resulting from her public records lawsuit. Brewster said in a statement Friday that she was pleased with the court for recognizing that the port “repeatedly violated the Public Records Act by withholding information from me,” and said she was weighing her options for any additional legal action.

Brewster has been involved in legal disputes with the port dating back to 2014. Friday’s case addressed 12 records requests Brewster Siled in 2014 and 2015 for a separate federal lawsuit against the port, which alleged that she was be-

ing treated unfairly by the port because she was a woman and that the port representatives retaliated against her because she had been critical of it. She dropped the federal suit in 2015.

In court documents, Brewster said the port violated public records laws by both failing to release requested records and delaying the release of other documents. The port later admitted liability in the case, saying that it had failed to comply with the requests in a timely manner. “What I was put

through for simply wanting to be treated equal is unspeakable, especially in this day and age,” Brewster wrote in a statement.

“I’ve told many people that I felt like a boxer who’d been put into the ring with her arms tied behind her back.” Brewster shut down Kingston Adventures, her Central Avenue rental and tour business, in December of last year, citing “exhausting” litigation that had “irreparably damaged” her business. Port Executive Director Jim Pivarnik called the penalties a fair assessment.

Lyttelton port strike notices lifted R

WASHINGTON

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epresentatives from Lyttelton Port Co and the Maritime Union have reached an agreement in principle and all strike notices have been lifted. Lyttelton Port is now returning to normal operations, marketing manager Simon Munt said in a statement on the company’s website. A spokesman from the Maritime Union conSirmed on Monday an agreement in principle had been reached and would be put to MUNZ members this week for ratiSication. ‘We’ve got a good feeling about it,’ he said. The port’s Munt said the fact strike notices were lifted was an ‘extremely positive development as we move much closer to achieving settlement’. Between 160 and 180 Lyttelton Port employees are part of the Maritime Union covered by the collective contract

for the container terminal, which employs more than 250 people.

Port management wants to line up work rosters more closely with the company’s operating needs. The existing Lyttelton agreement was set to expire on March 7, 2016, and negotiations for a new collective agreement started in January last year, with 30 meetings in the second half of 2016. On December 1, union members unanimously voted to go on strike after rejecting a proposal by port management, with the outstanding issues over planned changes to the start and Sinish times for night shift workers by up to four hours. Several weekend strikes have occurred since them, forcing the port to implement contingency plans.

Meanwhile, Dixon expects to play a half of Port’s intra-club trial match this Friday ahead of their Sirst preseason game on February 23. The 26-year-old said he was aiming to

improve on his output last year – 30 goals in 18 games. “I don’t think it was my best season,” Dixon said, adding he was initially surprised at the fan and media attention in Adelaide, after spending Sive years with Gold Coast. “Being in Adelaide, it’s pretty ruthless,” he said. “You guys (media) love to get on and off us, so do the rest of the supporters. “It’s very Sierce competition. For myself, it was deSinitely an eye opener. “I’m a little bit more comfortable with where I am at and looking forward to this season.” pain’s minister of public works has announced sweeping plans for liberalization of hiring at the nation’s ports, which could lead to the loss of 6,500 unionized jobs over the next three years. On Thursday, the nation’s longshore unions protested the move and threatened a series of labor actions if the government does not withdraw the plan.

Under current Spanish rules, port operators have to hire stevedores from one local stafSing company, known as a SAGEP (Sociedad Anónima de Gestión de Estibadores Portuarios). In 2014, the European Court of Justice ruled that this arrangement was a violation of EU laws on freedom of establishment, and ordered Spain to open up the system to competition. The Spanish government says that the nation pays a penalty exceeding $25,000 for every day that it does not comply with the court order – and the Sines are set to quadruple. Faced with the elimination of the traditional system, Spain’s longshore unions have responded with outrage.

“The Spanish Government threatens the growth of the Spanish economy and seeks to make the dockworker profession disappear from national ports,” said Jordi Aragunde, general coordinator of the International Dockworkers Council (IDC).

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Mianwali ASO seizes non duty paid LED lights worth Rs2.9m FAISALABAD: The Customs Anti Smuggling Organisation (ASO) Mianwali has seized smuggled LED lights worth Rs2.9 million involving duty and taxes amounting to Rs6,26,923. The ASO authorities also impounded non duty paid Hino trailer worth Rs30,00,000. Sources told Customs Today, that Deputy Collector Muhammad Rizwan received information regarding smuggling attempts on which he formed a team comprising Superintendent Chaudhary Sardar Muhammad, Inspector Muhammad Mansha Muhammad Umar Bhatti, and Sepoys Muhammad Feroz, Muhammad Anwar, Said Rasool and others.

Wednesday, March 1, 2017

CUSTOMS BULLETIN

Smugglers have fear of customs in their mind: riaz hussain FAISALABAD NAeeM SheIkh

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he Customs Intelligence and Investigation (I&I) foiled smuggling attempts of miscellaneous goods worth Rs236.67 million which involves duty Rs90.1 in Sirst seven months of FY2016-17 during different operations.

Deputy Director Customs I&I Riaz Hussain told this during an exclusive talk with Customs Today. He told that the Customs I&I under the directions of Director Rubab Sikandar conducted various raids to curb smuggling attempts.

Riaz said that 47 cases of smuggling were registered against the accused during the above said period.

The seized items includes computer systems, printers, LCD monitors, laptops, Iranian motor oil and Indian grey fabric. The customs I&I also impounded non-duty paid and offending vehicles.

Riaz added that the customs Sield investigation unit Khushab conSiscated smuggled auto parts, vehicles and other miscellaneous items during the above said period.

Talking about the details of cases, deputy director told that the cus-

toms ofSicials registered 7 cases in July, 4 cases in August, 3 cases in September, 5 cases in October, 10 cases in November, 7 cases in December and 11 cases in January.

Riaz said that Director General Shoukat Ali strictly instructed all

customs ofSicials to show zero tolerance against accused of smuggling. After these instructions, the customs ofSicials speed up their efforts to curb smuggling.

The customs department had tightened its screws around the smug-

glers in the Faisalabad region, the customs I&I staff showed out-standing performance to remove smuggled items from markets and warehouses, Riaz added. In response to a question Riaz said that the Customs has taken signiSicant measures to curb smug-

gling and now it is nearly impossible for smugglers to move illegal goods freely. The smugglers have fear of customs in their mind. He said that selling of smuggled items is not in favor of the country and it causes loss to the national economy.

FBr officer granted bail in embezzling recovered currency case KARACHI

M BILAL

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ustoms Taxation and AntiSmuggling Court Judge Syed Faiz Rasool Rashdi granted an interim bail to accused Muhammad Afzal, Superintendent, Directorate General, Intelligence and Investigation, FBR Karachi, who was booked in a case of smuggling of foreign currency and embezzlement of recovered foreign

currency.

During the hearing, counsel for the accused Siled an application for the bail and submitted that his client is innocent and was falsely implicated in the case therefore court may grant him a bail before arrest till Sinal decision after the hearing, so the court granted him bail against the surety of Rs300000.

The court also directed the accused to appear before the court on the next date of hearing. It needs to mention here that in this case another accused Muhammad Yaseen was awarded sentence till rising of the court on pleading guilty.

Meanwhile, Customs Court Judge Syed Faiz Rasool Rashdi has extended physical remand of Muhammad Yaseen, the main suspect in currency smuggling case, and Muhammad Afzal, a customs superintendent posted at Karachi airport, for another four days.

During the hearing, the investigation ofSicer produced both the suspects before the court and submitted that investigation had not yet been completed and prosecution needed further remand. After the arguments, the court extended their physical remand and directed the investigation ofSicer to produce

them on the next date of hearing along with progress report.

According to the prosecution, Superintendent Muhammad Afzal intercepted Yaseen at the international departure lounge of the Karachi airport on February 8, 2017. Yaseen, who was travelling to Dubai, was carrying unauthorized limit of $10,000.

Superintendent Afzal brought him in the ofSice of directorate general located at international departure hall and recovered Sive packets of the foreign currency comprising US dollars and Saudi riyals. Investigation ofSicer informed the court that when Afzal was asked him about the pas-

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senger, he said that the passenger was a poor person and he intended to save him. However, during the investigation, Muhammad Afzal admitted to keeping the recovered money at his home. A raid was conducted at his home and $18,900 and Saudi Riyals 76,500 were recovered from there. As per the FIR, accused are involved in the nature of offence of smuggling of foreign currency and embezzlement of recovered foreign currency, therefore, a case was registered against them under section 2(s) 16, 161, 168, of the Customs Act 1969 punishable under section 156 (1) (8) (81) (82) & 156 (2) ibid.