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Karachi, Tue May 16, 2017

KARACHI

MUBEEN HUSSAIN

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ea ports of the mega city have been facing shortage of space as hundreds of containers are laying idle due to strike of the goods transporter companies for the last six days.

According to the details, Karachi Port Trust (KPT) and Port Muhammad Bin Qasim (PQA) are facing shortage of space due to the strike. The goods transporters are protesting against the government decision to prohibit the entry of heavy trafOic in the city in day time as it causes trafOic jam.

The sources in the KPT informed Customs Today that daily from 6,000 to 8,000 containers move to and from the Karachi port area but now due to the

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shortage of space the containers as well as bulk cargo are in standstill position.

A spokesperson of the KPT claimed that the port has a capacity of 50,000 containers and the vessels are being handled every day to overcome any emergency situation.

The source also informed that KPT off port area is also Oilling its sea space after six vessels including Oive oil tankers and one bulk cargo ship are in standstill position from May 3 and only 13 vessels are berthing at the port for their turn to get loading and discharging. On the other hand, eight vessels at PQA are present at the off port area and only seven vessels are berthed.

A petition has also been filed in the Sindh High Court against entrance of heavy vehicles in the city by the Mayor Karachi Waseem Akhtar.

‘Smuggling thru trucks minimized to a great extent at Quetta stations’

PM lauds Chinese cooperation to help Pakistan cope with energy crisis

State Bank grants banking licence to Bank of China

Customs ASO seizes Rs 1.5 non duty paid electric appliances near Band Road

FBR document s Rs56b property transactions in 5 months, collects Rs1.5b

The ASO Quetta impounded smuggled goods and NDP vehicles | SEE pAgE 02 |

PMNawaz spokehighofcooperationby theChinesegovernmentaswelltheChina’s | SEE pAgE 03 |

The SBP has issued a banking licence to the Bank of China | SEE pAgE 04 |

Customs ASO impounded millions of rupeesnon-dutypaidelectronicappliances | SEE pAgE 14 |

TheFBRhasdocumentedRs56bworthof propertytransactionsinthelastfivemonths | SEE pAgE 16 |

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FBR asks SBP to provide details of offshore transactions Tuesday, May 16, 2017

National

KARACHI: The Federal Board of Revenue (FBR) has asked the State Bank of Pakistan (SBP) to provide details of all the taxpayers who have made offshore transactions during the last six years.

Official sources said that all corporate and individual taxpayers, who have made offshore investments, have been selected for audit to check the tax concealment.

However, the number of cases selected for audit is unknown so far.

The FBR is also obtaining details of local assets of such taxpayers, besides property transactions made by them during the period.

‘Smuggling thru trucks minimized to a great extent at Quetta stations’

SHc directs to restore bank accounts of M/s Islam khan & Sons KARACHI

QUETTA

tArIQ DErYA

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he Sindh High Court (SHC) directed the tax authorities to ensure that if there is no any specific order from any competent court or the authority for blocking bank accounts of the petitioner, particularly, recovery of impugned demand, the petitioner may be allowed to operate bank accounts on a constitutional petition filed by M/s Islam Khan & Sons seeking order for de-blocking of its bank account. While the hearing of petition, a two-member bench, headed by Justice Aqeel Ahmed Abbasi also issued notices to the tax department and deputy attorney general directing them to file their respective para wise comments on next date of hearing. During the hearing, counsel for the petitioner stated that petitioner is engaged in the business of distribution of different goods in the market and is fulfilling all liabilities regularly, however, it was surprised when it came to knowledge of the petitioner that his account has been freeze, petitioner also received copy of the notice under section 122 (1)/122 (5) of the Income Tax Order 2001. Being aggrieved it filed an appeal before commissioner Inland Revenue Appeals which is pending for final disposal, however, tax authorities have taken coercive action and attached its bank account for impugned disputed amount.

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www.customsbulletin.com he Anti-Smuggling Organization (ASO) Quetta impounded smuggled goods and Non- Duty-Paid vehicles worth Rs1182.18million from July to April of Financial Year (FY) 2016-17 whereas the ASO Quetta seized smuggled goods valued Rs86.721million only during April FY2016-17. Under the guidance of Collector Model Customs Collectorate Quetta Dr. Saeed Jadoon, the ASO has showed outstanding seizures since two Oinancial years.

During FY2015-16, the ASO Quetta seized smuggled goods worth Rs1.00billion. During the current FY16-17, the ASO Quetta will cross the worth of seized smuggled goods

by Rs01.00billion.

This was stated by Junaid Mahmood, Deputy Collector ASO Quetta, while giving an exclusive interview to Customs Today.

He said prior to March 2015, some organized smuggling of three billion rupees was prevented on the Chaman border. The anti-smuggling efforts have been accelerated which resulted in increase of revenue and seizures, he added. Now at different stations working under the jurisdiction of MCC Quetta, smuggling through trucks and buses has minimized to a great extent.

Answering a query, he said there

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are 11 different anti-smuggling check-posts working under the jurisdiction of Quetta Collectorate named Rakhni, Manikhwa, Yaroo, Shella Bagh, Baleli, Khanozai (inactive), Lak Pass, Surab, Nokkundi, Dalbandin and Darkhshan (Bolan).

Telling about the Oield formation customs stations, he said there are many Oield formation customs stations which generate revenue and are working for anti-smuggling ac-

tivity. Their names are Taftan, Chaman NLC Dry Port Quetta, Railways Dry Port Quetta, AFU (Quetta International Airport), Zhob, Dalbandin (Established 1983 – functional for Anti-Smuggling and provides clearance for marble imported from Afghanistan), Nokundi (Dormant –established 1983), Katagar (established 2006 Pak-Iran Border), Gaznali (Dormant – established 2006 Pak-Afghan Border), Qamar

Din Karez (Dormant – established 2006 Pak-Afghan Border) and Badini (Dormant –established 2006 Pak-Afghan Border).

Deputy Collector ASO Junaid Mehmood said that during 10 months (July to April 2016-17), the ASO Quetta seized smuggled goods worth Rs1182.18million while ASO seized smuggled goods valued Rs86.721million during April FY2016-17.

Multan customs collects rs3257.641 million taxes T

MULTAN

IMrAN ALI

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he Customs Collectorate Multan collected Rs3257.641 million during the month of April of Oiscal Year 2016-17.

The Collectorate of the Multan Customs has done collection of Rs766.685 million under the head of customs duty against the Oixed target throughout April. Likewise Collectorate has collected customs

duty (CD) of Rs173.086 million against set target of Rs989.20 million during matching period of April in the previous Oiscal year 201516.The Customs Collectorate Multan has surpassed the assigned revenue collection task of Customs duty due to effective strategy in the April of the on-going economic year 2016-17. Collectorate has focused their concentration for the collection of customs duty in April to accomplish its assigned mark.

Multan Customs is facing revenue

shortfall in the collection of sales taxes, federal excise duty (FED) and Income taxes due to decline in the import clearances of various consignments at Multan Dry Port in the month of April. The Model of Customs Collectorate Multan has poised Rs2472.010 million under the head of Sales taxes against the assigned revenue collection task of Rs.3560 million in the April.

The collection of sales taxes has observed sudden decline due to less import clearances of ex-bonding of

High Speed Diesel (HSD) from Multan Collectorate. Multan Customs were able to collect Rs.4076.088 million in the corresponding month of April for economic year 201516.The Sales tax collection has been cut down in the last few months due to increase in Clearance of High Speed Diesel (HSD) products from other Collectorates. The Customs Collectorate Multan has collected federal excise duty (FED) of Rs7.860 million beside Rs.28 million target for the duration of April and Income

tax of Rs10.560 million was also collected against set target of Rs17 million in that Period . The Collectorate has done revenue collection of Rs0.526 million in terms of Additional Sales taxes during month of April. The net Collection of the Multan Collectorate become Rs3257.641 million against Rs4327.78 million for the period of April. However, Multan Customs Collectorate is striving hard to achieve the annual target by utilizing all their available resources to attain positive results.

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IHC postpones hearing of case filed by M/s Wateen Telecom ISLAMABAD: The Islamabad High Court (IHC) dated in office the hearing of a reference filed by M/s Wateen Telecom Limited, challenging a recovery claim of outstanding tax made by field office of the Federal Board of Revenue (FBR). A division bench of the IHC comprising Justice Athar Minallah and Justice Miangul Hasan Aurangzeb heard the case. M/s Wateen Telecom Limited had prayed the court that the FBR office had issued a recovery notice to the company which did not hold lawful grounds and be declared illegal. The company also asked the court to grant it an interim stay against the recovery proceedings.

Haroon Akhtar, Dr Irshad assure telecom industry a level-playing field

Tuesday May 16, 2017

National

pM lauds chinese cooperation to help pakistan cope with energy crisis

ISLAMABAD

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meeting of officials of the Ministry of Information Technology and representatives of telecom industry of the country was held with Special Assistant to the Prime Minister on Revenue Senator Haroon Akhtar Khan and Chairman FBR Dr Muhammad Irshad at the FBR House the other day. Minister of State for Information Technology Ms Anusha Rahman and PTA Chairman Dr. Syed Ismail Shah were also present in the meeting. During the meeting, issues related to telecom industry were discussed. The captains of the telecom industry apprised the FBR management of issues related to taxation in the telecom sector.

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customs releases consignments after receiving tax FAISALABAD

NAEEM SHEIkH

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he Customs Intelligence and Investigation released consignments worth Rs, 3,641,921 after receiving evaded amount of duty and taxes. The said consignments were detained during the month of 2017. According to details, the consignments released by the Customs Intelligence consist of foreign origin Boski cloth worth Rs119,328 auto parts worth Rs743,881 F/O tyres worth Rs221,990 AC compressor worth Rs222,925 cloth Rs 300,485 Sulphonic acid worth Rs467,314 foreign origin computer system worth Rs461,091 and auto parts Rs1,104,907. Sources said that the said consignments were held by the Customs Intelligence due to evasion of customs duty worth Rs1,276,668, sales tax Rs777,126, income tax Rs 440,508 and redemption fine duty Rs 1,147,619 during April 2017.

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BEIJING

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rime Minister Muhammad Nawaz Sharif spoke high of cooperation by the Chinese government as well the China’s National Energy Administration (NEA) to help Pakistan cope with energy crisis through building power generation projects.

Addressing the Bhasha Project Conference held by National Energy Administration here, the prime minister said the NEA had been an effective and reliable partner in its Oight to cope with energy crisis.

The prime minister was accompanied by Chief Minister Punjab Shahbaz Sharif, Chief Minister Sindh Murad Ali Shah, Chief Minister Khyber Pukhtunkhwa Pervaiz Khattak and Chief Minister Balochistan Sanaulllah Zahri, besides Planning Minister Ahsan Iqbal, Finance Minister Ishaq Dar, Railways Minister Khawaja Saad RaOiq, State Minister for IT Anusha Rehman, Commerce Minister Khurram Dastgir and Advisor to PM on Foreign Affairs Sartaj Aziz. He said apart from helping Pakistan in addressing the issue of power shortages, NEA had also helped Pakistan’s power sector experts in going through the critical learning curve. The prime minister thanked the NEA for hosting an extremely important and strategic session for Bhasha Dam, a project of critical importance for the future of

Pakistan. He said Pakistan’s human resource had beneOitted tremendously from its interaction with experts and academia under the NEA. The work done by the Joint Working Group on energy has laid a solid foundation for the development of Pakistan’s energy sector to its optimal potential.

At present, he said NEA was looking after the bulk of high impact power projects in Pakistan under the China-Pakistan Economic Cor-

the prime minister thanked the NEA for hosting an extremely important and strategic session for Bhasha Dam, a project of critical importance for the future of pakistan

pharma industry seeks sales tax zero-rating

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KARACHI

cUStoMS BULLEtIN rEport

www.customsbulletin.com harmaceutical industry has asked the Federal Board of Revenue to announce zero-rating of sales tax so that the industry would able to claim inputs.

The industry in its budget proposals 2017-18 said that the sales tax being paid on packaging material utilities and other supplies used in manufacturing pharmaceutical products is adding to the product

cost. Since the Oinal product is exempt from sales tax, the tax paid can neither be passed on to the consumer nor can be claimed as input tax. This is also against the philosophy of sales tax which is supposed to be borne by the consumer.

The industry urged the FBR that local supply of medicines/drugs should be classiOied under zero-rating, instead of the current exempt status from levy of sales tax, so that the pharma industry, whose selling prices are regulated by the govern-

ment, may claim input tax credits on taxable inputs. Alternatively, the taxable raw materials and packing materials, whether imported or locally procured may be notiOied as exempt from sales tax, if purchased by a pharma manufacturer. The industry further said that otherwise sales tax input paid by pharma companies should be adjustable against corporate income tax. It said that through the Finance Act 2008, custom duty on pharmaceutical raw materials was reduced to 5 percent.

ridor. “I take this opportunity to acknowledge that the fast-track implementation of Early Harvest Projects will be a critical component of our effort to eliminate power outages by the middle of next year,” he remarked. He apprised the audience, comprising heads of various power sector Oirms, that a 300 Mega Watt solar power project and two wind power projects of 50 Mega Watts each, had already started power production.

Adjudication Dc Asma hears 22 cases ustoms Adjudication Deputy Collector Asma Hameed heard 22 of smuggling and tax evasion cases. Deputy Collector Asma Hameed heard cases of smuggled foreign origin cloth, pineapple, Toyota Passo car and other vehicles, tyres and tubes, cigarettes, generator 80-KVA and other miscellaneous items during the hearing.

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CPEC project to improve Pakistan trade relations, economy Tuesday May 16, 2017

Business

ISLAMABAD: President, Pakistan Economy Watch Dr Murtaza Mughal has said that CPEC project will improve trade relations and European countries have also expressed willingness to be the part of CPEC. Talking to Radio Pakistan, he said that Prime Minister Muhammad Nawaz Sharif is proactive and working on its agenda to improve the economy of the country by utilizing all available resources.

He said Pakistan will have long-term benefits of China Pakistan Economic Corridor project.

SBp grants licence to Bank of china PESHAWAR

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he State Bank of Pakistan (SBP) has issued a banking licence to the Bank of China.

The bank will commence its business in branch mode after meeting other regulatory requirements, a SBP statement on Saturday said. It said that the Bank of China is a subsidiary of China Central Huijin, investment arm of the Government of China. The Bank of China is not only operating in the Chinese main land, but its footprints have reached to 50 countries.

Nineteen of those countries are located across Chinese ‘One Belt One

rs2.8b approved for 2 roads construction SIALKOT

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he Punjab government has approved Rs 2.8 billion for construction of main Daska-Pasrur Road and main Pasrur-Narowal Road, Federal Minister for Law and Climate Change Zahid Hamid told the media. He said that the provincial government would spend Rs 1.8 billion on the reconstruction and dualisation of 30-km long main DaskaPasrur Road and Rs 997 million on 27.6km long main Pasrur-Narowal Road’s construction. Later, the minister held an open court at PML-N House Pasrur.

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Road’ initiative.

At the end of 2015, the Bank had a total of 11,633 institutions including 644 in overseas markets.

The Bank of China is the 4th and

5th largest global bank in terms of Tier-1 Capital and total Assets respectively. It is listed on the Shanghai Stock Exchange and the Hong Kong Stock Exchange. The bank will

initially bring US$ 50 million to fulOill the Minimum Capital Requirements of SBP. The long term objective of the Bank of China is to increase its market penetration by opening branches in major cities of Pakistan aiming to be one of the largest foreign banks in Pakistan.

The Bank of China aims to provide differential and specialized banking services to effectively serve the Oinancing needs of China Pakistan Economic Corridor (CPEC) related projects by leveraging on its experience and global technology platform. The Bank of China is the second Chinese bank entering in Pakistan and that its entry into Pakistan represents growing conOidence of international investors on the country’s banking sector and stable economic outlook.

pakistan’s economic progress highlighted at a chicago seminar P

CHICAGO

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ictures of Pakistan’s picturesque tourist spots and historical landmarks were showcased at a “Pakistan-Seminar” held in the premises of Pakistan’s Consulate in Chicago at which the country’s steady economic progress was highlighted. The seminar was organized by the consulate in collaboration with Central Asian Productivity Research Center (CAPRC).

Besides Professor Harry Lepinske,

Chairman of the CAPRC, Yuri Hoffman, Board Member of CME Group, an American Oinancial company, Larry Bajmakovich, a noted businessman, Ozgur Arslan Ayaydin, Associate Professor of Business at University of Chicago and members of CAPRC and a large number of business analysts and travel consultants attended.Prof. Lepinske, who moderated the event, thanked the Consulate General of Pakistan for working and cooperating with CAPRC. Speaking at the Seminar, Consul General Faisal Niaz Tirmizi said that Pakistan is full of breathtaking

tourist locations and anyone who loves tourism and traveling ought to include Pakistan in their travel plans. He urged the audience to visit Pakistan and experience the warmth and hospitality of Pakistani people, as have a number of people to have been to the country.

Amer Sultan Tareen, commercial counselor at the consulate, briefed the audience about the economic revival of the country and apprised them about the opportunities for investment with particular reference to the China Pakistan Economic Corridor (CPEC).

cES-capital E-Ipo concept introduced for capital market ISLAMABAD

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n order to facilitate the public by providing efficient, easy and hassle-free mechanism to apply for subscription of securities of companies offered for sale through initial public offerings (IPOs), the concept of Centralized e-IPO system (CES) has been introduced. The CES concept has been introduced by Central Depository Company (CDC) with active support of 1Link (Guarantee) Limited and under the guidance of the Securities and Exchange Commission of Pakistan (SECP) and State Bank of Pakistan (SBP). Under the newly introduced Centralized eIPO system, application for subscription of securities can be made electronically, according to a SECP press statement issue here. Investors having a valid CNIC, bank account with any scheduled bank and CDC account can electronically register themselves 24/7 throughout the year on www.cdceipo.com.Only registered investors can apply for the subscription of securities through any of the banking channels (ATM, net banking, mobile App and over the counter). Furthermore, CDC, with the lead support of the SBP, is in the process of introducing e-dividend concept.

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IcAp calls for structural reforms in tax system ISLAMABAD

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he Institute of Chartered Accountants of Pakistan (ICAP) has called for structural reforms to broaden tax base and simplify system of determining tax liability. Speaking at a seminar on budget proposals 2017-2018, the tax experts belonging to ICAP said at present various alternative modes

of determining the effective tax liability of a taxpayer were in place.

They said the corporate sector, which was the most documented segment of the economy, had been neglected due to extreme tax collection measures in order to meet annual budget targets.

Tax expert Ejaz Hussain Rathore said although tax evasion needed to be tackled with strong measures, however tax compliant taxpayers should be extended supportive in-

terface by the tax department.

He suggested the tax should be reduced to bring it at par with other competitive economies and to provide incentive for strengthening of organized and documented sector.

He added in order to promote corporatization, small companies should be brought at par with association of persons and individuals by providing threshold turnover of Rs 50 million for the purposes of withholding agent un-

der Section 153. Another tax expert Asif Kasbati proposed that in order to promote, encourage and incentivise export of services, the income from export of all types of services should be exempted in line with IT enabled services. Alternatively, export of services be subject to reduced rate of tax as in case of export of goods, he added.

The experts said tax payer should be allowed a compensation for disputed tax demand recovered but

later deleted in appeals. This would bring fairness in the process of collection and payment of tax system, and also enforce accountability for FBR field force. The decision of Alternative Dispute Resolution Committee (ADRC) should be made binding on FBR, and only in case of serious reservations, Federal Board of Revenue (FBR) may be allowed to appoint another committee for review of the decision of the ADRC, they added.

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ax Oilers have increased to 100 percent from 700000 to 1400000 during the current Oinancial year and the impression that existing taxpayers are being squeezed is wrong.

These views were expressed Federal Board of Revenue (FBR) Dr Irshad Khan while addressing businessmen at the Lahore Chamber of Commerce and Industry the other day.

The chairman FBR said that business community ‘ s growth and prosperity is the government’s growth and development as the government is 30 percent partner in their incomes. He said that tax Oilers should hang their NTN on their outlets to identify non tax Oilers. “Rs 57 billion refunds have been disbursed and aggressively all refunds would be paid back with interest,” he said adding that Dry port clearance has decline due to federal government’s tax levy and chief collector and LCCI president would prepare recommendations and submitted the same to the to the ofOice of the chairman for the removal of the obstacles. Revenue is need of the government and business community must support in this regard, he said, adding that non Oilers can be caught only if the businessmen support FBR. He added extensive consultation is being undertaken so far as the Budget 2017-18 is concerned and the taxpayers would be given relief. He said that cohesive measures would not be taken and the

business community should also pay its areas we are there to provide you to concessions.

On the occasion, LCCI President Abdul Basit said tax Oilers are decreasing while tax revenue is increasing which is a testimony that existing taxpayers were being victimized.

“National Tax Authorities be made to collect all the revenues at one time. Refunds are being delayed if it is delayed the govern-

ment should pay it back with 3 percent interest with kibore.

Pakistan should tax agriculture sector like livestock. He also demanded that the food sector be declared zero rated like the other Oive sectors. He demanded that the FBR should not play with the reputation of the business entities and it should refrain from raiding the outlets of the businessmen to save the reputation of both the businessmen and the country home and abroad. Senior Vice President Amjad Ali Jawa, former ofOice-bearers and executive committee members at the Lahore Chamber of Commerce & Industry Mian Muhammad Ashraf, Kashif Anwar, Shahid Hassan Sheikh, Irfan Qaiser Sheikh, Malik Tahir Javed, Shafqat Saeed Piracha, Aftab Ahmad Vohra, Zeeshan Khalil, Awais Saeed Piracha, Mian Muhamursed b mad Nawaz, Adnan Khalid Butt, s i d n d ve bee i Salman Basit, Mian Abdul Raza a h p s e d ld b fun u e o r zaq, Syed Mukhtar Ali, Tanvir w n o s i nd ry bill ll refu that D Ahmad SuOi, Waqar Ahmed a “rs 57 g y n l i e d v essi d ad i r l a a g Mian and Chief Commissioner s r g e e a ed t,” h and ue to f RTO-II Lahore Khawaja Adnan d nteres i e h n r i t o l i dec lect l s o Zahir, Chief Commissioner a c back w h f e e c chi learan LTU Lahore Zulqernain Tiry and v e r e l a port c x p e t’s ta mzi, Chief Commissioner uld pr me nmen nt wo e d i gover the sa s CRTO Lahore Syed Nadeem d e r e t p t I i c m Rizvi, Chief Collector Customs and Lc or the nd sub man f ions a r t i a a d Lahore Ms. Zeba Hai and, Comh c n e e h m t f recom missioner Zone-VII CRTO Lahore ffice o les obstac o the o t e e h Mr. Mahmood Jafri, FBR Foundat h t f o l to a v tion Islamabad Saleem Ranjha, were remo also present on the occasion.

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Tuesday, May 16, 2017

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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

potentials of pak-Iran trade

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ccording to newspaper reports, the consul general of Iran has expressed the desire to enhance trade between Pakistan and Iran up to $5 billion per year. In an official meeting of the Pak-Iran Joint Chambers of Commerce, he informed that efforts are being made to set up a joint banking system to boost trade activities. Earlier, the State Bank of Pakistan had signed an agreement with central bank of Iran to establish a mechanism to facilitate financial transactions between the two countries. A system of formal banking channels will not only facilitate economic cooperation between the two sides, but will also pave the way for Iran to join China Pakistan Economic Corridor. Pakistan and Iran are not only two brotherly neighbouring countries, but also intermingled with historical, cultural and linguistic strings and both should have joined hands to set up a practically and viable trade mechanism for the benefit of the two countries. It is unfortunate that the leadership of Pakistan could not extend a hand of cooperation to Iran as a big country. Instead of finding any positive and common grounds to enhance business and trade, the Pakistani leadership blindly followed the cue given to it by Arab countries in the Gulf. As a matter of fact, Pakistan should have cordial relations both with Iran and Arab countries and a balanced approach is the only option. At a time when business is the priority for every nation, relations with one country should not be maintained at the cost of the other country. Iran is an immediate neighbor and both Pakistan and Iran can benefit from each other through trade, business and economic cooperation. It is also highly unfortunate that both the countries, despite close affinity, could not established banking channels to stimulate trade activities. The lack of official channels boosted illegal trade between the two countries. Iranian diesel, petrol, ceramic items and plastic granules are frequently smuggled into Pakistan and the customs department has to assign extra staff and spend hundreds of man-hours to control this menace. If legal trade is increased, it will not only bring positive changes on diplomatic fronts, but will also bring financial gains for the two countries. The European Union has established a mechanism to promote legal trade within the countries and the same system can be adopted here.

Moody’s new rating I

LAHORE

Dr AftAB AfZAL

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n its annual credit analysis of the Pakistan’s economy, Moody’s has given the current government a B3 rating with a stable outlook. B3 is one of the lowest investment rating with likelihood of default and assigned to a security. A security with a B3 is considered speculative. Ironically, B3 rating is being regarded in positive sense which is given to the Pakistan’s economy by the rating agency on account of ‘strong economic growth and reduction in Oiscal deOicits’. Moody’s Investors Service has claimed that the strong growth performance, reduction in Oiscal deOicit and im-

proved inOlation dynamics underpinned the government’s B3 rating with a stable outlook. However, counting the negative aspects of the economy, the agency notes the government is facing the challenges of high general debt burden, weak physical and social infrastructure, a fragile position of external payments, and high political risk. It says the government weighs on debt affordability due to narrow revenue base, because inOlow of exports and remittances have slowed down and capital goods imports have risen. This has resulted in renewed pressure on the external accounts. The agency notes the prospects for growth have improved after successful completion of a three-year Extended Fund Facility programme

of the International Monetary Fund and the construction of China-Pakistan Economic Corridor. Despite low revenue base and fall in the amount of remittances sent by the expatriate Pakistanis, the corridor project has the potential to modernize the economy of Pakistan. The CPEC project is the game changer and development of infrastructure will transform and stimulate the economy by inOlow of both local and foreign investment. However, renewed pressure on the external accounts and lack of Oiscal consolidation have curtailed the rating, said the ratings agency. According to a senior ofOicial of the rating agency, implementation of economic reforms and increased inOlow of foreign investment have brought macroeco-

nomic stability to some extent and has been pushing the growth in the gross domestic product since 2013. However, pressure on the external accounts continued due to piling up debts. The stable outlook means upside and downside risks to the sovereign credit proOile. The support from lending agencies has upgraded foreign currency reserves of the country and has fostered progress on economic reforms. The international rating agencies off and on Oires warning shots. Instead of struggling for local and foreign investment, the government banks all its hopes on new loans from donor agencies. May be the nation is still unprepared to absorb the changing perspective of the national economy.

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Greater access to finance will help UK businesses grow LONDON: Since the UK voted to leave the EU, there have been plenty of warnings that the economy will suffer as a result. It is too early to see how challenging Brexit will be in the long run but so far the small and medium-sized businesses that drive much of our economy have shown resilience and, as we demonstrate today, the UK has a real opportunity to build a new, sustainable, productive and job-creating post-Brexit economic model if it backs these dynamic entrepreneurs and businesses. On Wednesday, we at the London Stock Exchange publish – in partnership with The Daily Telegraph – the latest annual edition of our “1,000 Companies to Inspire Britain” report which identifies the most dynamic and fastest-growing companies across the UK. This report gives a platform to companies growing at exceptional rates – 70pc on average – and across a range of sectors.

MD IcrU calls on top Management of LccI LAHORE

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he newly appointed Managing Director of the Investment Climate Reform Unit (ICRU), Government of Punjab Ms. Maleeha Bangash, met ex Senior Vice President, LCCI Almas Hyder to discuss the objectives of ICRU and the operational strategies which it will employ.

They agreed that there will be a major role for the private sector to play if the ICRU is to be effective, in terms of providing both feedback to the Government and public support for the reform activities which it will manage. The discussion also covered the need for reforms which would

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impact not only on the World Bank’s Ease of Doing Business indicators but also on the more broadly based Global Competitiveness Index, which is produced by the World Economic Forum – and within which Pakistan’s ranking provides considerable scope for improvement. Ms. Bangash indicated that she saw potential for the work of the ICRU to contribute to improvements in several of the 12 components which comprise the Global Competitiveness Index. Meanwhile, Commissioner Overseas Pakistanis Commission (OPC) Punjab Mohammad Afzaal Bhatti has said that overseas Pakistanis are real asset of the country and are playing a pivotal role in economic uplift of the country therefore Commission is working day and night to resolve their issues. OPC intends to establish working relations with the Lahore Chambers of Commerce & Industry (LCCI) as collaboration between the two institutions would help yield positive results.

Tuesday May 16, 2017

Chambers

pakistan exported $3.62b worth of goods to USA: US diplomat U

FAISALABAD

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S Consulate Lahore is to offer human resource development for Pakistan. In this regard, about 10.000 students will complete their Ph.Ds in US universities, said Yuriy Fedkiw, Consul General, US Consulate Lahore during his visit to Faisalabad Chamber of Commerce & Industry (FCCI). The meeting was attended by the prominent industrialists and trading community.

He further said that US Consulate General Lahore has already offered English Language Course free of cost in University of Agriculture and Government College University in Faisalabad under ‘Linken Corner Program’. Moreover, in collaboration with the FCCI, the US Consulate Lahore will offer seminars, workshops and awareness programs on business opportunities in USA and Pakistan. In this regard, experts on solar power generation and safety and personal security protection programs will be offered accordingly.

He acknowledged the rapid industrialization, commerce and trade activities in Punjab and termed Pun-

jab as a future business hub of the country. He further appreciated FCCI activities for promoting commerce and trade.

Later on Hassan Raza Commercial Specialist briefed about the trade and commerce activities of US Consulate whereby US Consulate is organizing three delegations for USA and offered services and information about GSP Webner Earlier, in his

address of welcome Engineer Muhammad Saeed Sheikh said that Pakistan and USA have always enjoyed extremely cordial and friendly relations. US have been a valuable partner in Pakistan’s efforts for national development and peace, stability and economic development.

He further said that no doubt that USA is Pakistan’s largest trading partner but still trade volume is far

Businessmen asked to focus on Uzbekistan and Mexico for trade promotion

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ISLAMABAD

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he Ambassador designate of Pakistan to Uzbekistan Dr. Irfan Yusuf Shami and Ambassador designate to Mexico Mr. Tasawar Khan visited Islamabad Chamber of Commerce and Industry and briefed the business community about the potential areas of promoting Pakistan’s exports with these countries.

Dr. Irfan Yusus Shamsi said that many Pakistani products including pharmaceuticals, surgical instruments, leather products, textiles, potatoes, citrus, mangoes and others have huge potential in Uzbek market and stressed that business community should step up efforts to en-

hance export of these products to Uzbekistan. He said his embassy would try to organize an exhibition of Pakistani products in the Oirst week of September 2017 in Tashkent and asked the business community to send their quality products for display in the said expo. He said twice a week Olights from Lahore to Uzbekistan have been started from April and another Olight will be started from Islamabad to Uzbekistan on completion of new Islamabad Airport to facilitate bilateral trade. He assured that he would try to connect credible businessmen of Uzbekistan with Pakistani counterparts for business partnerships.

Tasawar Khan, Ambassador designate of Pakistan to Mexico said that Mexico was a huge economy of over US$ 2 trillion with annual exports of

US$ 360 billion and consumer market of 125 million people. However, Pakistan’s trade with Mexico was negligible. He said Prime Minister was giving priority focus to trade and business community should play leading role in enhancing Pakistan’s exports. He said private sector should now focus on non-tradition products for increasing exports with Mexico. Speaking at the occasion, Khalid Iqbal Malik, President, Islamabad Chamber of Commerce and Industry said that Commercial Sections in Pakistani embassies should be further strengthened to explore new business opportunities for Pakistan in foreign markets. He said Pakistani embassies in host countries should identify major importers and connect them with Pakistani exporters to promote country’s exports.

below the potential and there is a wider scope to enhance the bilateral trade. He added that during the last decade, economy of Pakistan has suffered huge loss due to the war against terrorism whereby the US Government has not offered compensation reciprocally. Continuing, President FCCI said that in Oiscal year 2016 bilateral trade stood at US $ 5.72 billion in favor of Pakistan.

call for making IcrU effective he newly appointed Managing Director of the Investment Climate Reform Unit (ICRU) Punjab, Maleeha Bangash, met former senior vice president, Lahore Chamber of Commerce and Industry (LCCI) Almas Hyder to discuss the objectives of ICRU and the operational strategies. According to a spokesman for the LCCI, they agreed that there would be a major role for the private sector to play if the ICRU was to be effective, in terms of providing both feedback to the government and public support for reform activities. The discussion also covered the need for reforms which would impact not only on the World Bank’s Ease of Doing Business indicators but also on the more broadly based Global Competitiveness Index, produced by the World Economic Forum. –CB Report

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Customs Appraiser Muhammad Obaidullah to retire on June 15 ISLAMABAD: Muhammad Obaidullah, a Pakistan Customs Service officer of BS-16, is going to retire from the government service on attaining the age of superannuation. The officer, Appraiser (BS-16), Model Customs Collectorate of Appraisement-West, Karachi shall stand retired from Government service on June15, 2017 (A.N).

Meanwhile, Chanzeb Khan Swati, a BS-18 officer of Inland Revenue Service, has retired from the government service on attaining the age of superannuation.

Tuesday May 16, 2017

Islamabad tausif Qureshi assumes charge as Director of Ipr Enforcement ISLAMABAD

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fBr modifies notification regarding posting of Dr fazal T

ISLAMABAD

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ausif Ahmad Qureshi, a Pakistan Customs Service officer of BS-20, has assumed charge as Director, Directorate of IPR Enforcement (Central), Lahore. The officer, in pursuance of Board’s Notification No.1278-C-I/2017 dated 21.04.2017, relinquished the charge of the post of Director, Directorate of IPR Enforcement (North) (Stationed at Lahore) with effect from May 2, 2017.

Tausif had assumed charge of the post of Director, Directorate General of IPRE (North) (stationed at Lahore) with effect from March 30, 2017. He relinquished the charge of the post of Collector, Collectorate of Customs (Adjudication), Faisalabad and took as Collector at Faisalabad Collectorate on July 21, 2014. After conclusion of ‘Customised Advanced Management Course’ from November 28, 2011 to December 2, 2011 at RIPA, London, Tausif, then BS-19 officer and posted as Collector at Model Customs Collectorate in Multan.

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Superintendent Muhammad Haroon to retire on July 10 uhammad Haroon Khatri, an Inland Revenue officer of BS17, is going to retire from the government service on attaining the age of superannuation. The officer, posted as Superintendent at Regional Tax Office, Hyderabad, will stand retired from the government service on July 10, 2017. Meanwhile, Muhammad Zaman Mazari, Inspector (BS16), Model Customs Collectorate, Quetta, has been given major penalty of ‘compulsory retirement’. The disciplinary proceedings under Government Servants (Efficiency & Discipline) Rules, 1973 were initiated against the accused officer vide Charge Sheet No.10(19)/2014-Cus-III dated 12.09.2014. –CB Report

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he Federal Board of Revenue (FBR) has partially modiOied a notiOication regarding transfer/posting of Dr Fazal Muhammad Abrejo, a Pakistan Customs Service ofOicer of BS-21. In partial modiOication of Board’s NotiOication No. 1388-IR-I/2017, dated 04.05.2017, the place of posting at Sr. No 02, Column No 03 may be read as Director General, Directorate General of Valuation-IR, Islamabad (stationed at Karachi) instead of Director General, Directorate General of Valuation-IR, Islamabad.

Meanwhile, Muhammad Zaman Mazari, Inspector (BS-16), Model Customs Collectorate, Quetta, has been given major penalty of ‘compulsory retirement’. The discipli-

nary proceedings under Government Servants (Efficiency & Discipline) Rules, 1973 were initiated against the accused officer vide Charge Sheet No.10(19)/2014-

Cus-III dated 12.09.2014. Saeed Akram, the then Additional Director, Directorate General of Training & Research (Customs), Karachi was appointed as inquiry officer to

conduct inquiry on account of various acts of omission and commission committed by the accused officer constituting “inefficiency”, “misconduct” and “corruption”.

customs seizes huge quantity of narcotics D QUETTA

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irectorate General of Customs Intelligence and Investigations during its crackdown against smugglers seized huge quantity of narcotics and plastic granules. The customs team also recovered non customs paid moulding machine.

Sources told Customs Today that Deputy Collector Customs Preventive Junaid Mehmood received credible information that some smugglers are trying to smuggle huge quantity of narcotics under the cover of Oishes.

He immediately constituted a raiding team. The team enhanced vigilance in the area and intercepted a truck bearing registration no: SB-2358 and recovered of twelve kilograms of smuggled narcotics which were tactfully hidden in the sacks.

The market value of seized narcotics is Rs1.3 million.

The customs team arrested the driver of the vehicle and regis-

tered a case of narcotics against the driver of the vehicle and started investigations.

During another crackdown the Customs Quetta team seized huge

quantity of non duty paid plastic granules from the godown of a manufacturing company. The customs team asked the manager Wajid Khan to show legal docu-

ments regarding import of moulding machine but he failed to show any relevant documents. Customs team arrested the manager and registered a case against him.

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Customs valuation of 1,800cc vehicles increased KARACHI: The Directorate of Customs Valuation has increased the customs valuation rate on import of 1,800cc and above vehicles ahead of federal budget 2017-18.

All Pakistan Motor Dealers Association (APMDA) Chairman HM Shehzad said the decision would raise the duty of such vehicles by Rs200,000 to Rs1.5 million depending on around 400 models as the mechanism of customs valuation for imported vehicles had been changed without taking stakeholders into confidence.

He said the association members had suspended the clearance of around 200 vehicles at the port due to an increase in valuation rate.

gawadar customs foils smuggling attempt, rto-II collects rs46634m KARACHI

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he Customs Collectorate Gawadar foiled a smuggling attempt and recovered narcotics. Two accused were nabbed in the said operation.

According to details, Customs Gawadar has seized more than 80 kilogram of narcotics, millions of liter of Iranian diesel and other smuggled items in April 2017. The biggest operation against the Iranian diesel was conducted on April 18, 2017 in which the Customs Collectorate seized 288000 liters Iranian diesel. The customs impounded vehicles carrying registration No: LA-476 & BL-754. The seized diesel is said to be worth Rs17.2 million. In a recent operation, Assistant Collector Customs Gawadar

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Kalim Ullah supervised a special team comprising of Inspector Shah Zaman, Rohail Khan and others. The said team raided a house in Pesho Khan area and recovered 15 kilogram fine quality weed. The team also nabbed two accused and registered a case against them. The seized narcotics (weed) is said to be worth Rs1.5 million. Meanwhile, Pharmaceutical industry has asked the Federal Board of Revenue to announce zero-rating of sales tax so that the industry would able to claim inputs. The industry in its budget proposals 2017-18 said that the sales tax being paid on packaging material utilities and other supplies used in manufacturing pharmaceutical products is adding to the product cost. Since the final product is exempt from sales tax, the tax paid can neither be passed on to the consumer nor can be claimed as input tax. –CB Report

Karachi

SHc bars tax dept from enforced recovery from M/S Intertek pakistan pvt Ltd T

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M B rANA

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he Sindh High Court (SHC) restrained tax department from enforced recovery of disputed amount of Rs3,530,421 in respect of income tax on a constitutional petition file by M/s Intertek Pakistan Private Limited against impugned demand notice issued by deputy commissioner Inland Revenue Enforcement & Collection Unit-II Zone-II. During hearing of petition, a twomember bench headed by Justice Aqeel Ahmed Abbasi also issued pre-admission notices to the tax department and deputy attorney general directing them to Oile their respective para wise comments on next date of hearing.

Earlier, counsel for the petitioner stated that petitioner is a private limited company and is engaged in providing technical inception services to oil and related industries, foods, and agriculture products, textile, mechanical and pharmaceutical products.

Counsel further argued that deputy commissioner Inland Revenue Enforcement & Collection

Unit-II Zone-II issued notice to the petitioner alleged that petitioner as a defaulter of above mentioned amount, being aggrieved, it moved an appeal before CIR Appeals which is pending, however, during the pendency, tax authorities issued a no-

Tuesday May 16, 2017

tice for enforce recovery of disputed amount. Citing Secretary Ministry of Law, chairman FBR, CIR Zone-II, Large Taxpayer Unit-II and other as respondents, petitioner pleaded the SHC may restrain them from taking any coercive measures against it.

tobacco industry for amending sales tax, federal excise laws KARACHI

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obacco industry has urged the government to amend sales tax and federal excise laws making evasion as a criminal offence. In its budget proposals for 2017-18, the industry said that the level of illicit trade in tobacco in Pakistan is currently measured highest in its history at approximately 40 percent of the total consumption, which is translating into a revenue loss for the government of approximately Rs40 billion. The tobacco industry proposed the Federal Board of Revenue (FBR) to introduce a monitoring system through tax stamps printed by the Pakistan Security Printing Corporation or a similar internationally experienced entity selected through a transparent process. Moreover, stricter criminal penalties to be introduced under the Federal Excise and Sales Tax Act and rules for non-compliance. To support the legal industry revival, via actively taking enforcement action against illicit players as well as further amending the excise laws to make excise and sales tax evasion a criminal offence. The industry proposal on tax stamps and enforcement measures will arrest the exponential growth of illicit trade in Pakistan.

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court grants bail to suspects booked in tax evasion case

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KARACHI

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he Customs Court Judge Syed Faiz Rasool Rashdi granted interim pre-arrest bail to accused persons namely Khurram Shahzad son of Muhammad Sharif, proprietor of M/s Diamond Fabrics and Umer Naeem, chief Oinance ofOicer of M/s Diamond Fabrics who were booked in a mis-declaration and tax evasion case of Rs191,719,201.

During the hearing, both accused appeared before the court along with their counsel and moved petitions for pre-arrest bail, coun-

sel argued that their clients are innocent and were falsely implicated in this case, who are ready to face trail, however, they have apprehension of arrest, therefore, and court may grant them bail till final disposal of this case. After his hearing, court granted them bail and observed in its order that, “Without touching the merits of the case, adinterim pre-arrest bail is granted to accused to furnish surety in the sum of Rs2,00,000 each with P.R bond in the like amount to the satisfaction of this court.

Court also directed accused to join investigations if and when required by the investigation ofOicer and appear before the court on next

date of hearing. Court also called the police papers and issued notice to special prosecutor for customs department for May 11, 2017 According to the prosecution, offence nature was mentioned in FIR as misuse of SRO-450 (1)/ 2001 dated 18/06/2001, through mis-declaration of description of exported goods with un-due claim of use of imported raw material in export shipments and illegal removal of dutiable imported goods from manufacturing unit without payment of duty and taxes. Therefore, case was registered against accused in violation of section 18, 19, 32, (1) & (2), 32 (A), 79, 86, 97, 98 and 118 of the customs act, 1969 read with SRO

450 (1)/2001 dated 18/06/2001 punishable under section 156 (1) (14) (14A) (8) (59) and (62) of the Customs Act, 1969 further read with section 3, 6, 33 and 34 of the Sales Tax Act 1990 and section 148 of the Income Tax Ordinance 2001.

Meanwhile, Customs Court Judge Syed Faiz Rasool Rashdi directed the investigation ofOicer to complete investigation and submit a chargesheet against accused Faisal Abbas, owner of M/s ShaOi Shah Muhammad Ghous Lahore, and directors/involved persons of M/s United Marine Agencies (private) limited for deliberately submitting misleading information regarding the false bills of shipment.

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Iranian banks to decide rates next month Tuesday May 16, 2017

World

TEHRAN: When major players of the Iranian banking system next convene in the foreseeable future, addressing the oft-visited dilemma of interest rates will be on top of their agenda, the head of the Association of Private Banks and Credit Institutions announced. “During previous meetings, discussions took place regarding interest rates and it was decided that the next meeting would focus on interest rates and make plans for supporting production and employment,” Kourosh Parvizian also told Fars News Agency, underscoring the importance of reviewing rates in the next session.“Yes, we are looking to balance both the lending and deposit rates,” he added. Back in June, the Money and Credit Council allowed the banking sector to offer approximately 15% interest on term deposits, lowering the rate by 3%.

Zhangjiang center offers a new, Saudi-Egyptian business ties set to strengthen speedier approach to customs RIYADH

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SHANGHAI

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he Shanghai Zhangjiang Cross-border ScientiOic Innovation Supervision Service Center has started trial operations to improve the ease of customs clearances. The Oirst beneOiciary of the new service center was the Shanghai Boehringer Ingelheim Co, whose imported medical products worth 1.8 million yuan (US$261,070) passed smoothly through customs. The service center at 899 Dangui Road covers 12,000 square meters, including the joint declaration hall for customs clearance and entry-exit inspection, the inspection area and a warehouse.

Shanghai Customs launched the service center in the hope of accelerating inspection and clearance for biopharmaceutical and integrated circuit enterprises in Zhangjiang. The

kenya in talks to resume exports to South Africa enya is reportedly in talks with South Africa to resume its exports of avocados that have been banned since 2010 due to the presence of fruit fly pest, according to local media. Kenya Plant Health Inspectorate Service (KEPHIS) general manager of phytosanitary services Isaac Macharia recently said that South Africa had given Kenya a number of requirements that it must fulfill before exports can begin. “We are confident we will meet all the requirements given that we are already exporting avocados to the European Union which has stringent standards,” Macharia was quoted as saying. Before the ban was imposed, the avocado trade with South Africa used to earn Kenyan farmers approximately US$1.2 million annually, the story reported. –CB Report

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idea was Oirst proposed in 2015 and received approval last September.

Construction was completed on March 13. The center greatly improves the efOiciency of customs clearance and ensures the safety of cargo, said Xie Dong, executive director of the ChemPartner, CRO service division of the ShangPharma Group, another beneOiciary of the new center.

Provided the necessary paperwork is submitted, customs clearance and

entry-exit inspection can be cut from 2-3 days to within 24 hours. And customized services will be offered to companies that import goods requiring refrigeration. The center will use Zhangjiang’s status as a national innovation demonstration zone to make itself a pilot ground of various innovative measures concerning trade facilitation, said Yang Ye, director of Zhangjiang High Tech Park administrative committee.

Shipments of Xiaomi smartphones ‘banned by russian customs’

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martphones produced by China-based Xiaomi are being listed as intellectual property products by Russian customs, which will send back all such phones on the way to Russia until the situation is cleared up, Russian media outlet rueconomics.ru said.

Xiaomi knows of the incident and is actively communicating with related parties, Xiaomi told the Global Times on Monday.

Russian customs has blocked a

large quantity of Xiaomi phones shipped to Russian consumers since April, following a Russian customs rule that bans counterfeit products from being imported, said the report. Xiaomi also pointed out on Vkontakte, a Russian social media website, that the imported Xiaomi phones came from channels that did not get the permission of official distributors, and it said that they are all counterfeit products. –CB Report

fter several months of reported tensions between the two countries, it seems that Saudi Arabia and Egypt are overcoming their differences meaning their ties are back on the right track. President Sisi’s visit to Saudi Arabia last month and prior to that, his meeting with King Salman on the side-lines of the Arab League summit in Jordan on March 29th, were likely to have sealed an improvement in Saudi-Egyptian relations. It appears that both Riyadh and Cairo are overlooking their differences (Syria, Yemen and the transfer of sovereignty of two Red Sea islands Tiran and SanaOir) and concluded that they should not impede the development of their economic ties or rupture political relations. Egypt is in dire need of Saudi Arabia’s sup-

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port, while Egypt’s stability is a strategic interest for the Kingdom.

To be sure, Saudi Arabia has already provided several multi-billion dollar schemes for aid and credit since President Abdel Fattah al-Sisi assumed power in Egypt in 2013. The inOlux of the Kingdom aid and Oinancial support are still needed, as the performance of Egypt economy’s three pillars: tourism income, Suez Canal revenues, and foreign direct investment (FDI) continues to struggle compared with years before the so-called Arab Spring. Not only that, Saudi Arabia is one of the largest countries in the world hosting huge number of Egyptian workers estimated at more than two million sending remittance to Egypt of over $8 billion annually. Additionally, more than 100 thousand Saudi tourists visit Egypt each year, pumping hundreds of millions of dollars into the Egyptian economy. Importantly, the move last March by Saudi Aramco to resume petroleum products shipments to Egypt can be seen as a very positive sign for foreign investors.

Iran cigarette output up 63% total of 2.6 billion cigarettes were produced in Iran in the first month of the current fiscal year (started March 21), registering a 63% increase compared with the corresponding period of last year, the head of the Center for Tobacco Planning and Supervision said.

About 250 million cigarettes were imported during the same period, down 87% year-on-year, SHATA reported. Ali Asghar Ramzi added that 45 billion cigarettes were produced in Iran in the last fiscal year (March 201617), registering a 50% rise com-

pared with the year before, which met 82% of domestic demand for cigarettes. Last year’s imports stood at 4 billion cigarettes, down 76% year-on-year.

Smuggled cigarettes, according to the official, decreased by 30% from 8.6 billion cigarettes two years ago to reach 6 billion last year. According to the Health Ministry, Iranians smoke about 55 billion cigarettes annually. The government aims to call a complete halt to cigarette imports and meet domestic demand through local production instead. –CB Report

philippines’ foreign reserves rise to USD81.82 billion

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MANILA

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he Philippines’ foreign exchange reserves rose to USD 81.82 billion in April 2017, which the central bank traced partly to its foreign exchange operations and the net foreign currency deposits by the national government.

Data released by the Bangko Sentral ng Pilipinas (BSP) Friday showed that the gross international reserves (GIR) in the fourth month this year was higher than monthago’s USD80.9 billion, but lower than year-ago’s USD83.74 billion.

BSP Governor Amando Tetangco Jr., in a statement, said other factors that boosted the reserves included revaluation adjustment on the cen-

tral bank’s gold holdings after the rise of this commodity’s price in the international market, and the gains from the central bank’s investments overseas. He, however, said that the positive factors were countered by NG’s payment of its foreign currencydenominated debt. The current GIR level is enough to cover nine months’ worth of imports of goods and payment of services and primary income.

During the same period, the net international reserves (NIR), which is the difference between the GIR and the central bank’s short-term debt also registered a hike to USD81.8 billion from the previous month’s USD80.99 billion. The country’s GIR has generally been strong but posted Oluctuations in recent months because of the impact of narrowing capital account and some capital outOlows.

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Belgian finance minister warns EU to change or die BRUSSELS: Brexit has “shattered” the principle of ever closer union in the EU, according to the Belgian finance minister, who warned that the bloc had to transform itself to survive. Johan Van Overtveldt said there was “clearly a problem” with the European Union, as he called for a quick, comprehensive trade deal with the UK and warned that punishing Britain would be counterproductive.

Van Overtveldt said a “different” and “better” EU, that focused on key areas such as security, migration, jobs and trade instead of policing trivial policies would help to boost prosperity in the bloc and remove the discontent sweeping across the Continent.

Indian customs & central Excise amends rules & regulations n exercise of the powers conferred by sub-section (4) of Section 32-I of the Central Excise Act, 1944 (1 of 1944) and sub-section (4) of section 127 F of the Customs Act, 1962 (52 of 1962), the Customs, Central Excise & Service Tax Settlement Commission hereby makes the following further rules to amend the Customs and Central Excise Settlement Commission Procedure, 2007 namely:- (1) These rules may be called the Customs and Central Excise Settlement Commission (Amendment) Procedure, 2017. (2) It shall come into force on the date of its publication in the Official Gazette. In the Customs and Central Excise Settlement Commission Procedure, 2007, for the rule 15 of the said Procedure, the following shall be substituted, namely:- “The orders of the Commission as are deemed fit for publication, in any authoritative report or by the press, may be released for such publication, on such terms and conditions as the Commission may lay down.” –CB Report

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german customs seizes 90-pound cocaine shipment

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turkey aims to boost gcc ties amid free-trade talks urkish President Recep Tayyip Erdogan on Monday said he aimed to boost economic and military ties with Arab Gulf states, as talks on a free- trade zone deal pushed ahead. Erdogan, who is expected in Kuwait on Tuesday, said Ankara was involved in “high-level strategic dialogue” with the six-nation Gulf Cooperation Council (GCC), the state-run KUNA news agency reported. Erdogan also confirmed that talks on a free-trade zone between Turkey and the GCC were under way.

During his visit, Erdogan and Kuwait’s Emir Sheikh Sabah Al-Ahmad AlSabah are expected to lay the foundation stone of a $4.3-billion airport expansion project awarded to Turkish firm Limak Holding. –CB Report

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erman customs ofOicers seized an Ecuadorian shipment of over 90 pounds of cocaine bound for Russia, the Customs Investigation OfOice said in a statement late on Wednesday.

“The Oight against cocaine trafOicking in large ports is our top priority. The number of Oinds and the quantity of cocaine taken out of circulation has grown signiOicantly,” In-

vestigation OfOice spokesman Stephan Meyns said in the press release. The customs authority said the shipment could have fetched more than 6 million euros ($6.5 million) on the black market. Investigators are working to determine where it was expected to change hands.

Meanwhile, Russian ofOicials will again try to overturn a ban by the European Bank on Reconstruction and Development (EBRD) on new investment loans in Russia when the bank holds its annual meeting in Cyprus this week. Russian Economy Minister Maksim Oreshkin is due to address the EBRD board of gover-

nors in Nicosia, the Cypriot capital, on May. The EBRD imposed the ban as part of a series of Western sanctions after Moscow’s illegal annexation of Ukraine’s Crimean Peninsula in 2014 and support for separatists in eastern Ukraine. Oreshkin is expected to argue that the freeze on new lending to Russia violates the international bank’s own rules and is unfair as it affects the entire Russian economy instead of speciOic sectors. Moscow began pushing last summer for the EBRD to remove the loan ban. Although Moscow is likely to gain support from some fellow former Soviet states.

Tuesday May 16, 2017

Indonesia sues thailand’s ptt for $2 billion ontradictory claims sit at the heart of a bitter row that reignited between the Indonesian government and PTT, Thailand’s state-owned oil company, last week over a 2009 oil spill in the Timor Sea between Australia and Indonesia. Reported to be the worst offshore drilling accident in Australian history, it resulted in an estimated 30,000 barrels of oil leaking for 74 days from a well operated by a PTT subsidiary in the Montara oil field. Nearly eight years on, the Indonesian government has filed suit against PTT and two subsidiaries PTT Exploration & Production and Australia-based PTTEP Australasia (PTTEP AA), the operator of the oil rig.

The demand is for 27.5 trillion rupiah ($2.06 billion) in compensation for environmental damage and rehabilitation in the Indonesian regions affected. The civil lawsuit was filed at the Central Jakarta District Court on May 3. PTTEP was fined 510,000 Australian dollars ($37,7101.6) by an Australian court in 2011. Indonesia said it decided to seek legal redress against PTT after negotiations proved fruitless.

Officials say they believe they have sufficient evidence to win. “At the beginning, we thought there was goodwill from their side, but after several meetings there appeared to be none,” Arif Havas Oegroseno, Indonesia’s deputy coordinating minister for maritime affairs. –CB Report

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US fMc rejects Japanese shipping lines’ merger plan

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he US Federal Maritime Commission (FMC) has rejected the merger of the container businesses of K Line, MOL and NYK on “jurisdictional grounds”.

The matter will now be referred to the US Department of Justice (DoJ), which could delay or halt the proposed joint-venture.

In a statement, the FMC said: “The Shipping Act does not provide

the FMC with authority to review and approve mergers. After careful consideration, the commission determined that parties to the ‘tripartite agreement’ (Oiled with the FMC on March) were ultimately establishing a merged, new business entity and that action is among the type of agreements excluded from the FMC review.”

The approval of the agreement would have allowed the three Japanese shipping lines to begin sharing information and conduct joint negotiations from 8 May, ahead of the

formation of a joint-venture company in April next year.

The proposed JV would propel the new entity to Oifth in the global container line rankings, with around 1.5m teu capacity, and bring NYK a 38% stake and K Line and MOL 31% each. The FMC’s decision is unexpected, as it is assumed that some soundings would have been made beforehand, and it could be a major setback for the synergy aspirations of the Japanese carriers.

However, in a statement to The Loadstar, Commissioner William

Doyle said that the FMC’s decision to reject the Tripartite Agreement “in no way precludes the Japanese carriers from merging their container trade business units into a single standalone company”. The DoJ could take a tough line on the proposed merger after its critical comments on the restructuring of the alliances.

It voiced considerable concerns about the approval of the Ocean and THE alliances, saying the reduction from four to three vessel-sharing groupings posed a risk of “anti-competitive harm”.

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FIA arrests five accused Tuesday May 16, 2017

Lahore

LAHORE: Federal Investigation Agency (FIA) Gujrat arrested three land route agents and two proclaimed offenders involved in human-trafficking from different areas during a crackdown.

According to FIA spokesman, the arrested persons were identified as Fida Hussain, Amir Shehzad and Asif Shehzad belonging to district Gujranwala, and Nasir Iqbal and Ihsan Muhammad of district Gujrat.

Further investigation is underway. Meanwhile, Federal Investigation Agency (FIA) arrested a man involved in illegal business of human smuggling and recovered 15 Pakistani passports, five medical certificates, visa copies and relevant record from his possession.

customs court adjourns hearing of accused in mobile smuggling case LAHORE

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he Special Federal Court of Customs Taxation and AntiSmuggling has adjourned a case of an accused arrested from Sialkot International Airport.

An accused, travelling from South Africa to Sialkot, was checked by the customs ofOicials at Sialkot airport.

The customs team, during a search of the luggage, recovered 30 costly mobile phones hidden in the baggage of Muhammad Sarwar.

The customs team arrested the accused and presented him before the customs court for physical remand but the judge denied the request and sent him to jail for judicial trial.

Muhammad Sarwar also Oiled a petition for his post-arrest bail which

6 tonne narcotics seized across country he Anti Narcotics Force Pakistan seized narcotics weighing 6.05 tonne in 19 operations across the country during the last 48 hours.

According to ANF report, the force also arrested 23 accused with six vehicles. The ANF Lahore intercepted a van on Wazirabad Road and recovered 16.8 kg hashish besides arresting Ikramullah, Arifullah Waheedur Rehman and Malik Waqas. In another operation, the ANF recovered 1.05 Kg hashish by arresting Noorul Ibrar near China Chowk, Wazirabad Road, Sialkot While the ANF recovered 130g hashish from motorcyclist Hanif near Shoukat Khanum Hospital Chowk, Lahore. The ANF in the fourth operation recovered 150 gram hashish from Qasim Ali near Punjab University New Campus, Lahore while it recovered 230 g hashish from Nadeem of Kasur. –CB Report

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was also adjourned because of unavailability of prosecutor of the court.

Meanwhile, The Special Federal Court of Customs Taxation and AntiSmuggling has adjourned the case of a suspect who was involved mobile phones smuggling case.

According to details available to Customs Today, Muhammad Ilyas was nabbed by the customs authorities at Faisalabad International Airport while he was coming back from Dubai through a private airline. During the checking of his luggage, the customs authorities found 400 costly mobile phones hidden in his bags.

The worth of the smuggled mobile phones is more than Rs 2 million and he attempted to make a huge loss to the national kitty. Customs Investigation and Prosecution (I&P) team of Faisalabad presented him before the customs court and asked for his physical remand that was approved by the court for 4 days.

ASo seizes rs 1.5 NDp electric appliances near Band road

LAHORE

M HAYAt

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ustoms Anti-Smuggling Organization impounded millions of rupees non-duty paid electronic appliances.

Sources told Customs Today that the ASO anti-smuggling team on the directions of Deputy Director Moazzam Raza raided Al-Saad Goods Transport Company, near Band Road where smuggled goods were dumped and seized electric irons Panasonic brand 492 pieces, split Inverter AC 1.5 ton Mitsubishi brand five sets, split inverter AC

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2.25 tons and seven sets of Panasonic brand iron. The sources said that the total value of the smuggled electronic items was estimated at Rs1,500,000/.

The raiding team that impounded the smuggled items was led by Superintendent Nasir Minhas while other including Inspectors Mughal-e-Azam, Gulzar Bhatti, Tariq Baig was also part of the operation.

The sources said that the customs authorities registering a case have started further investigations.

Meanwhile, Customs Investigation and Intelligence Lahore AntiSmuggling Organization has successfully impounded huge quantity of non-duty paid auto parts and cylinders. As per details the Customs I&I Anti Smuggling Organization impounded old and used auto part worth Rs2,855,000 involving duty and taxes worth Rs2,188,127. In another operation the ASO of Customs I&I seized old and used complete differential tubes assembly.

tax evasion: pcA recovers rs1,131,675 prA fails to meet revenue collection target he Provincial Ministry of Fi- against the assigned target of Rs from M/s Auriga chemicals nance has set Rs 336.07 bil- 138.33 billion.

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irectorate of Post Clearance Audit (PCA) Lahore has recovered Rs1,131,675 on account of inadmissible exemptions of goods and article imported from foreign countries by M/s Auriga Chemicals Enterprises.

According to the details, the PCA had issued audit observation to the company that it has short deposited Rs131,675 in National Bank of Pakistan (NBP) Customs House Branch.

The observations were made by a team led by Deputy Director Am-

mara Durrani and Touqeer Ahmad Dar. The team was also consisting of Senior Audit OfOicer Attiqur Rehman, Deputy Superintendent Babar Rashid. The Auriga Chemicals Enterprizes has intimated the Post Clearance Audit authorities that the company has deposited the short deposited amount to the national exchequer. Earlier, the PCA Lahore has unearthed millions of rupees tax evasion on account of telecommunication equipment’s and tarpaulins import. –CB Report

lion revenue collection target for upcoming Oinancial year 201718. Out of the set target, Rs 221.32 billion will be collected as provincial revenues whereas Rs 114.74 billion will be collected as nonprovincial revenues.

Sources said that the assigned target for the Punjab Revenue Authority (PRA) for the current Oinancial year 2016-17 was Rs 280.05 billion. However, the authority remained failed to meet the target.

In Oirst nine months of FY2016-17, the PRA collected Rs 116.4 billion

For the upcoming FY 2017-18, the highest target will be assigned to PRA which is about Rs 96 billion.

Whereas for the current FY 201617, the PRA collected Rs 56.39 billion against the assigned target of Rs 64.86 billion in first nine months of FY2016-17.

Sources added that PRA has decided to add 11 new departments into tax net to meet the assigned target. This will expand PRA’s tax net from 69 services to 80 services. No new tax will be implemented in the upcoming FY2017-18. –CB Report

customs tribunal Division Bench-II hears 14 cases

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LAHORE

SAJID NAwAZ

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he Customs Appellate Tribunal’s Division Bench-II (single and double), comprising Judicial Member Omer Arshad Hakeem and Member Technical Imran Tariq, heard 14 cases and adjourned all of them until the next hearings.

The Customs Appellate Tribunal’s single bench, comprising Omer Arshed Hakeem, heard four cases including Mukhtar Khan versus customs Faisalabad, Directorate of Intelligence and Investigation Gujrat versus Muhammad Luqman, Directorate of Intelligence and Investigation Lahore versus Al-Hussain Trading and Muhammad Hussain versus customs Faisalabad.

On Tuesday, the tribunal division bench-II heard 10 cases of Sadiq Muhammad versus customs Lahore, Tahir Rauf versus Directorate of Intelligence and Investigation Faisalabad, Imteaz Ahmed versus Directorate of Intelligence and Investigation Multan, Humyun Akber versus customs Lahore and Fatima Fertilizers versus Directorate Post Clearance Audit (PCA) Lahore. Fur-

thermore, the tribunal heard customs Lahore versus Tabish Corporation, Abdul Raziq versus Directorate of Intelligence and Investigation Gujrat, A.M Construction Company versus customs Lahore and Ibraheem Majeed versus valuation Lahore. In all the cases, representatives of the appellants and respondents appeared before the court and argued in favour of their respective parties.

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Pilbara ports report 3% lift in throughput WASHINGTON: Throughput at Pilbara ports was up 3 per cent to 55 million tonnes (mt) in April, compared to the same month last year. Figures released from the Pilbara Ports Authority showed the figure was up marginally on the previous month’s (March) figure of 54.8mt. Port Hedland was the big driver of growth with throughput up 13 per cent on the previous corresponding period to 42.9mt. Iron ore exports for the month totalled 42.2mt, an increase of 12 per cent on the previous year. Imports totalled 98,000 tonnes, an increase of 10 per cent from the same month in 2016.

Port Hedland is the biggest bulk export port in the world, overwhelmingly dominated by exports of iron ore by BHP Billiton and Fortescue Metals Group.

Vizag port container traffic gets infra boost ontainer traffic at Visakhapatnam Port Trust (VPT) is witnessing an upward growth during the last three years. VPT officials said better infrastructure facilities at the container terminal is helping the major port attract more customers into its fold as compared to other ports on the east coast. During 2016-17, container traffic grew by 25% with the major port handling a record 3.67 lakh TEUs as against 2.93 lakh TEUs in 2015-16. In tonnage, a record quantity of 6.43 million tonnes was handled as against the previous record of 5.15 million tonnes in 201516. Speaking to TOI, VPT deputy chairman PL Haranadh said, “People are willing to divert containers to Vizag as it is good for finished goods. We are able to tap traffic from Raipur and also food grains going to Kakinada is now being converted to containerised form due to our marketing efforts.”“We are also get-

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ting aluminium ingots from Jharsaguda area which were earlier going to Kolkata. We are at equal distance as compared to Kolkata, but we have coordinated with the railways to ensure a reasonable transit time,” he said. Furthermore, he said, “Our services have improved at the terminal and we are providing better service than Kolkata, which has a lot detention and congestion issues.” He also said there has been growth in marine products as well as cotton, apparels and other agriculture products such as chilli. Transhipment traffic from neighbouring ports of Kolkata, Haldia, Paradip and some of the rail bound traffic has also helped improve the container traffic. Noting that Vizag’s promixity to feeder ports is one of the crucial advantages for VPT, the official said the transit time for a container transhipped via Vizag is lower than other transhipment hubs such as Singapore and Colombo. –CB Report

Ports & Shipping

port of oakland truckers on alert after tSA warning WASHINGTON

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fter the federal Transportation Security Administration came out with a warning Tuesday about terrorists using trucks as weapons, truck drivers at the Port of Oakland said they’re on alert. It’s happening all over the world, and the Department of Homeland Security is asking truckers across the U.S. to be viligant.

Many truckers at the port said they already take precautions and know now is not the time to be complacent or they could be the next target for terrorists. Truck driver Sam Espinoza said he’s not surprised by the warning. “It’s the time we live in, it’s our era,” he said. “You’ve got to expect the unexpected. You’ve got to be alert for something like that.

It’s a reality.” The latest reality check came just last month in Stockholm, when a man stole a beer truck, drove it into a crowded shopping area and plowed into a department

store.

A new report from the TSA says that since 2014, more than 170 people have been killed in terror attacks using trucks. Hundreds more were injured in the 17 attacks, the worst of which camein Nice, France, last year when 87 people were killed.

The new advisory encourages more vigilance from the nation’s trucking

industry. “There’s concern that down in the Oield, out in the operations, people are not paying attention,” former Homeland Security ofOicial David Heyman said. “There’s a complacency because there’s not been trucks used as weapons here.”

Among the recommendations: keep trucks locked while parked and in slow moving trafOic.

Tuesday May 16, 2017

westports keen to participate in Sri Lankan port project estports Holdings Bhd has confirmed that it is keen to participate in the Hayleys PLC-led consortium bidding to complete the construction of Colombo Port’s East Container Terminal in Sri Lanka. The Sri Lankan government called for bids to develop the deep-water terminal on a “build, operate and transfer” basis last year. The project at Sri Lanka’s busiest port has been reported to be worth anything from US$400mil (RM1.73bil) up to US$600mil (RM2.59bil). “Westports had submitted an expression of interest to participate in the consortium bidding for Colombo Port’s new terminal as reported and the consortium bidding is an ongoing process,” the company told Bursa Malaysia. Westports said it would make the appropriate announcements to Bursa Malaysia Securities as and when there are material developments on the matter. In the master plan of Colombo Port expansion project, the East Container Terminal will have a 1,200m long quay wall, alongside water depth of 18m and a yard capacity of 2.4 million TEUs (20ft equivalent units). –CB Report

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ports to better accommodate produce shipments P

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ort Everglades has been involved in a pilot program that allows once-restricted grapes and blueberries from Peru and Uruguay to come into South Florida ports, says Ellen Kennedy, assistant director of communications for Port Everglades. “The program is working well and has been expanded to include citrus from Peru and apples and pears from Argentina,” she says.

“In the pilot program, fruit can be shipped directly to South Florida and delivered to local grocery stores faster and at a lower cost than shipping through traditional Northern ports.”

U.S. ports and the shippers they work with have changed their approaches to accommodating produce shipments and they are seeing their efforts pay dividends. The Port

of Wilmington, Del., is the No. 1 banana port in North America by virtue of Chiquita and Dole having weekly vessel calls there. These “liner” services have been fully containerized for decades and this will not change, said John Haroldson, marketing director for Diamond State Port Corp., which runs the Port of Wilmington. “What is advancing is the move by the specialized reefer operator from pure breakbulk, i.e., palletized shipments, to a greater emphasis on deck-loaded reefer containers,” he said. Haroldson said the port is seeing this to a large extent with Trans Global Shipping’s Chilean Winterfruit cargo, where it was common to have specialized reefers arrive with almost 200 containers on deck in addition to 5,000 pallets under deck. This trend also is starting to appear with the port’s fresh Argentinean apple and pear programs and has been an item of

discussion with a Moroccan citrus customer. “The obvious advantage is that this adds capacity and economies of scale for cargo-intensive programs, and this trend is well established in the Chilean trade,” Haroldson said. Port Everglades in Fort Lauderdale, Fla., was the port of entry for the Oirst shipment of perishable cargo participating in a new Ocean-to-Air pilot program, which was developed in partnership with Crowley Maritime Corp.’s Miamibased subsidiary Customized Brokers and Miami International Airport. Ellen Kennedy, assistant director of communications for Port Everglades, said the program allows Central American produce to reach European markets faster by expediting turn times and expanding customers’ distribution.“If it’s successful, there may be opportunities to work with other airports in Europe and Asia,” she said.

Port Everglades has been involved in another pilot program that allows once-restricted grapes and blueberries from Peru and Uruguay to come into South Florida ports, Kennedy said. “The program is working well and has been expanded to include citrus from Peru and apples and pears from Argentina,” she said. “In the pilot program, fruit can be shipped directly to South Florida and delivered to local grocery stores faster and at a lower cost than shipping through traditional Northern ports.” Mike Zampa, communications director for the Port of Oakland, Calif., said the port received a $1.6 million incentive fund last year to stimulate night gate use at its marine terminal to ease dayside congestion. The port worked with terminal operators to transform port operations through these extended hours, which in large part expedited refrigerated cargo pickup and delivery.

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Customs confiscates 35 smuggled luxury vehicles KARACHI: Customs officials, in a crack down on non-custom paid cars, have confiscated as many as 35 smuggled vehicles in the metropolis. Customs officials impounded the luxury cars with fake number plates and registration papers including Toyota Land Cruiser, Toyota Surf, and sports utility vehicles, said Deputy Collector Ali Raza. “The cars were illegally brought in the city, without paying customs duty,” he added. Previously on April 27, in an ongoing crackdown against smuggling of donkey hides, the Customs Department seized an additional 300 hides from a warehouse in Mauripur.

Tuesday, May 16, 2017

CUSTOMS BULLETIN

fBr document s rs56b property transactions in 5 months, collects rs1.5 billion KARACHI cUStoMS BULLEtIN rEport www.customsbulletin.com

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he Federal Board of Revenue (FBR) has documented Rs56 billion worth of property transactions during the last Oive months and collected Rs1.5 billion in taxes.

The government announced amnesty scheme for whitening the undeclared property investment and under the scheme a buyer needs to pay three percent additional tax on the differential amount between valuation tables issued by FBR and property rates notiOied by provincial governments.

Individuals, making property transactions, are exempted from a probe into the source of fund invested through Income Tax (Fourth Amendment) Act, 2016. The scheme was applicable from December 7, 2016. The number of such property transactions stood at 40,000, involving Rs56 billion, from December 6, 2016 to April 30. The sources said as the Oiscal year is nearing completion people are rushing to document their concealed money.

In April alone, around Rs20 billion worth of property transactions were whitened. The FBR sources

said the amnesty scheme attracted a large number of people. In the Oirst month, only two billion rupees of property transactions were docu-

mented. This amount increased to Rs23.3 billion by February-end.

Tax on immovable property transactions, under withholding tax

regime, also posted a phenomenal growth of 106 percent to Rs13 billion during the July-April period of the current Oiscal year of 2016-17.

The sharp rise in withholding tax collection was mainly attributed to increase in withholding tax rates during the last budget.

Dg Valuation revises values of low end brands gasoline pumps KARACHI

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he Directorate General of Customs Valuation has revised the customs values of gasoline water pumps (low end brands) through Valuation Ruling No 1150/2017 under Section 25A of the Customs Act, 1969.

According to details Directorate General notified VDB values of Gasoline Water Pumps

(low end brands) vide VDB letter No. 139 dated 30-12-2016.

Meanwhile, this Directorate General also initiated an exercise for determination of customs values gasoline water pumps (low end brands) under Section 25-A. Importers had been requested to furnish invoices of imports during last three months, showing factual values as well as the websites, names and E-mail addresses of known foreign manufacturers of the item in question through which the actual current value can be ascertained. The importers were also asked to sub-

mit copies of contracts or LCs which opened during the last three months, showing the values of the item in question as well as the copies of sales tax invoices issued during last four months, showing the difference in price (excluding duty and taxes) to substantiate that the benefit of difference in price is passed on to the local buyers. No documents were submitted in this Directorate General on or before the said scheduled meeting.

However, the Lahore Chamber of Commerce & Industry, Lahore submitted a written request that

the customs value of said product shall not be Oixed higher than US$ 2/Kg. The chamber objected that values notiOied vide VDB letter No 139 was far higher and owing to higher valuation there was danger of shifting legal import to the smuggling channel. The importers, who attended meeting, were again asked to submit documentary evidence in support of their contention, directly or through chamber of commerce if they liked.

They were also told that the gasoline water pumps were being imported/traded vis-a-vis their capacity in HP, so the values will be

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determined accordingly. At this their major objection was that at higher capacities especially after 6HP the price doses not increase in geometric progression. It was agreed that the same factor shall be looked into while determining customs values. They were again asked to submit documents to prove their point of view. Despite a considerable lapse of time, the importers have not submitted the requisite documents except some import invoices/ and copies of GDs. Resultantly numerous market surveys were conducted for determination of the customs values.