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inance Minister Asad Umar has directed Federal Board of Revenue (FBR) to leave no stone unturned and use all legal resources for achieving the revenue target set for the current Siscal year 2018-19. “I want to see the FBR as one of the top institutions of Pakistan in 2023”,
the federal minister said during his visit to FBR headquarters. OfSicial sources told Customs Today that Finance Minister Asad Umar spent a busy day with high management of FBR and conducted special consultative meetings to get suggestions and recommendations from the high-ups of FBR for institutional reforms, sources added. Sources further added that Asad Umar also showed dissatisfaction over not achieving the
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Sirst quarter revenue target and asked FBR Chairman Jahanzaib Khan regarding the root causes of failing to achieve the target. The Sinance minister also said that the government will take the FBR management in conSidence regarding institutional reforms. The FBR chairman informed the minister that he has started civil proceedings by serving tax notices to tax dodgers under Section 114 (4) and 116 of the Income Tax Ordinance.
FBR Chairman Jahanzeb seeks proposals for institutional reforms & tax policy
DG Valuation Suraiya Butt directs to revise VR No. 1095/2017
Customs I&I foils bid to smuggle NDP goods near Sagian Bridge
TIR transport will help expand trade across borders: DG Javed
Peshawar ASO seizes non-customs paid vehicles & narcotics worth Rs600m
FBRChairmanhasdirectedallMembers&Chief Commissionerstosubmittheir suggestions | SEE pAgE 02 |
DGValuation has advisedValuation Director to revisit theVR No. 1094/2017 | SEE pAgE 03 |
CustomsI&Iimpoundedacontainerloaded with NDP hair gel and tooth brushes | SEE pAgE 04 |
TIR transport reached Kabul (Afghanistan) via Peshawar and Jalalabad | SEE pAgE 14 |
ASO seized non customs paid vehicle and narcotics worth Rs600 million | SEE pAgE 16 |
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Govt removes FED on cigarettes Friday, October 19, 2018
Islamabad
ISLAMABAD: The government withdraws from the Federal Excise Duty (FED) imposed on cigarettes within a month of notifications. The Federal Board of Revenue (FBR) has issued a new notification, the notification states that the tax department has revoked the previous notification SRO 1150(1)/2018, dated September 2018. The notification further states that FED has been enhanced to Rs45,00 on locally produced cigarettes, however, it is conditional that printed retail price exceeds Rs45,00 per 1000 cigarettes.
fBR chairman Jahanzeb seeks proposals for institutional reforms & tax policy
Ihc upholds life jail term of Raja Iram involved in murder ISLAMABAD
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slamabad High Court (IHC) has upheld the life imprisonment sentence of accused Raja Iram Kiani who is involved in murder of Customs Deputy Superintendent Raja Ibrar. Justice Muhsin Akhtar Kiani of Islamabad High Court heard the case and rejected the appeal filed by accused Raja Iram Kiani against the verdict of lower court and disposed off the appeal. Deputy Superintendent Customs Raja Ibrar, who was 50-year old, was killed and his body was thrown at Japan Road falling in the jurisdiction of Sihala Police Station. People engaged in the investigations of the case have a suspicion that he was kidnapped when he was heading to his house from his office and was tortured to death by the gangsters for unknown reasons; however, the Lohi Bhair police arrested Iram Kiani who is brother-in-law of late superintendent Raja Ibrar. The arrested accused also confessed to his involvement in the murder of the customs officer. It is important to mention here that Muhammad Abrar Raja was born on August 5, 1957 and joined the government services on September 12, 1980.
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www.customsbulletin.com ederal Board of Revenue (FBR) Chairman Jahanzeb Khan has directed all the Members and Chief Commissioners to submit their suggestions and recommendations pertaining to institutional reforms and improvement in tax policy, it is learnt here. OfSicial sources told Customs Today that the FBR chairman presided over a meeting soon after the Sirst visit of Finance Minister Asad Umar, which was attended by all the members and chief commissioners. The meeting discussed the institutional and tax reforms, while the FBR chairman directed the participants to submit their suggestions and recommendations within one month on the restructuring of FBR, curbing corruption, broadening tax net, curb tax evasion and achieving tax revenue targets, sources added. Sources added that the meeting also discussed regular matter of the board. The board also discussed the ongoing cases in the courts involving millions of revenue. The chairman directed the legal wing to complete all preparations regarding the cases in the courts. It is also important to mention here that Finance Minister Asad Umar visited for the Sirst time to FBR headquarter and conducted a special meeting of the board and took the board high-ups
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in conSidence regarding the institutional reforms of FBR. Meanwhile, The UK has renewed its support to strengthening Pakistan’s tax system, following the signing of a Memorandum of Understanding (MoU) between the
Federal Board of Revenue (FBR) and the UK’s revenue authority, Her Majesty’s Revenue & Customs (HMRC) This MoU will help push up Pakistan’s tax collection by using data more smartly to target high net worth individuals who remain out-
side the tax net or underreport in tax documents. The MoU includes support to FBR to ensure that multinational companies pay the right amount of tax and to participate in an international effort to control tax evasion.
no audit for individuals on payment of additional tax T
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he federal government has offered abolition of audit cases on payment of 25 per cent additional tax, besides extending the date for submission of revised tax returns for individual taxpayers till December 31. At the same time, cases of hundreds of thousands of salaried persons selected for the audit have been settled without the
collection of any additional taxes, according to a notiSication issued by the federal government. According to the notiSication, with the amendment to the Income Tax Ordinance 2001, a new clause 214E has been added, which says that the scheme will be applicable to the taxpayers selected for the audit under the clause 214D, which had been removed from the ordinance, as well as those taxpayers who were not issued notices under section 122 of the ordinance.
The notiSication says that the taxpayers selected under the scheme will be able to submit their revised income tax returns till December 2018, with 25 per cent tax on top of the last tax they had paid. Moreover, those who have not paid their taxes will have to pay an amount equal to two per cent of their total turnover while those who have not even declared their turnover will have to pay Rs20,000 voluntarily as Sine. According to a senior ofSicer of the Federal Board of Revenue (FBR), sec-
tion 214D had been introduced to the Finance Act of the Income Tax Ordinance 2001 in the year 2015 for an automated selection of those who have submitted their tax returns after the due date for audit. Under this clause, 1.22 million individual taxpayers had been selected for audit in three years since then, he added. The ofSicial said that hundreds of thousands of audit cases, selected through lucky draws annually, were already pending with the FBR’s Audit Department. And the addition of a large number of cases
pertaining to those who submitted their tax returns after the due date had added to the bureau’s workload, he added. For the same reason, the previous government had – while unveiling its last budget for the Siscal year 2018-19 – removed section 214D from the income tax ordinance, but the cases of individual taxpayers selected during the last three years were still causing problems for the FBR and for which a summary had been submitted to the caretaker set-up, according to the FBR ofSicial.
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Court seeks reply on bail plea filed by female mobile phones smuggler KARACHI: The Customs Court issued notices to special prosecutor and investigation officer of customs department on post-arrest bail petition filed by suspect woman namely Seema Rauf wife of Abdul Rauf, who was booked in a case of attempting to smuggle non-duty paid foreign-origin mobile phones and memory cards worth Rs5,809,413. Counsel for the accused filed post-arrest bail petition and argued that his client is innocent and is falsely implicated in this case, who is ready to face trail; therefore, court may grant her bail till final judgment in this case.
court approves bail of suspects booked in mobile phones smuggling case
Friday October 19, 2018
Karachi
Dg Valuation Suraiya Butt directs to revise VR no. 1095/2017
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he Customs Court granted pre-arrest bail to seven suspects, who were booked in a case of attempting to smuggle non-duty paid foreignorigin mobile phones and creating hindrance/obstruction in performance of official duties and snatching mobile phones. Counsels for suspects, namely Muhammad Pervez, Muhammad Hussain, Amir, Sumair Ayub, Imran, Muhammad Amir and Abdul Hafeez Dad Wala, argued that their clients are innocents and were falsely booked in this case and they are ready to face trial. After the hearing, court granted them bail against the surety of Rs100,000 and issued notices to investigation officer and prosecutor for customs department.
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fBR seeks all govt employees’ tax details KARACHI
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he Federal Board of Revenue (FBR) has sought details of all the government officers of grade-17 and above to enforce mandatory requirement of income tax returns filings by them. The sources in Regional Tax Office Karachi said the matter of non-compliance of returns filing by the government servants was discussed at a recent meeting presided over by Prime Minister Imran Khan. The meeting said a large number of government servants are unaware about their taxable income and responsibility of filing of income tax returns. Sources said the FBR issued instructions to all the secretaries, additional secretaries, heads of attached departments, and autonomous and semi-autonomous bodies to provide the list of all the officers in grade-17 and above, along with their computerised national identity card numbers.
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irectorate of Customs Valuation Director General Suraiya Ahmed Butt has advised Valuation Director Iqbal Muneeb to revisit the Valuation Ruling No. 1094/2017 for removing deSiciencies in accordance with law and also taking on board the regular major importers as well as the representatives of Federation of Pakistan Chamber of Commerce & Industries (FPCCI) and Karachi Chamber of Commerce & Industries (KCCI). According to the details, M/s Shamim Associate agitated against Valuation Ruling No.1094/2017 that the department has not made the working/calculations properly while notifying the customs values of the virtual reality glass (low ends brands). They also agitated against the price parity maintained between the virtual reality glass (low ends brands) from various regions. The departmental representatives explained the valuation methodologies adopted by them to access the customs values determined vide the impugned ruling. After detailed deliberation of the case, Director General Suraiya Ahmed Butt advised Director Customs Valuation Iqbal Muneeb to revisit the Valuation Ruling No. 1094/2017 for removing the deSiciencies. Meanwhile, Directorate-General of Customs Valuation Director General
Suraiya Ahmed Butt has advised Director Iqbal Muneeb to revisit the Valuation Ruling No. 1164/2017 for removing deSiciencies in accordance with law and also taking on board the regular major importers as well as the representatives of Federation of Pakistan Chamber of Commerce & Industries (FPCCI) and Karachi Chamber of Commerce & Industries (KCCI). According to the details, M/s Samina S Traders Siled complaint against Valuation Ruling No.1164/2017 in
After detailed deliberation of the case, Director general Suraiya Ahmed Butt advised Director customs Valuation Iqbal muneeb to revisit the Valuation Ruling no. 1094/2017 for removing the deficiencies
fBR issues 154 notices to big tax evaders
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he Federal Board of Revenue (FBR) has issued further 154 notices to big tax evaders in the third phase of its drive of broadening tax base of the country. Earlier, the FBR had issued 244 notices to non-taxpayers in two phases. Minister of State for Revenue Hammad Azhar informed the media the other day that govern-
ment would expedite the process of issuing notices and the number would reach to thousands. According to FBR, the government had decided to start action, in a phased manner, against all those tax evaders who have purchased properties of over Rs 20 million, or purchased 1800 CC or larger engine cars, or received rent to the tune of Rs 10 million or more in a year but not bothered to Sile their tax returns; therefore not in the list of taxpayers. The drive for the recovery of
tax from these big tax evaders is being launched across Pakistan without any discrimination. All such tax evaders have been identiSied by the FBR and are being proceeded against for recovery of payable tax besides being subjected to heavy Sines and penalties for failing to fulSill their tax obligations. The FBR has once again warned the tax evaders to Sile their tax returns and pay their due taxes within the due date as the government is committed to reviving the national econ-
which it is stated that Customs Valuation department has not made the working/calculations properly while notifying the customs values of the potato frozen, French fries. They also agitated against the price parity maintained between the potato frozen, French fries from various regions. The departmental representatives explained the valuation methodologies adopted by them to arrive at the customs values determined vide the impugned ruling.
pak rupee depreciates against dollar he Pakistani rupee further depreciated against the US currency both in open market and interbank. As per the local money market, the greenback added 50 paisas in the open market for buying at Rs133.50 and 15 paisas for selling at Rs134.75. The dollar also gained 70 paisas in interbank for buying at Rs 133.50 and for selling at Rs 133.70.
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DC Naveedur Rehman Bugvi distributes work among appraising officers Friday October 19, 2018
Lahore
LAHORE: Deputy Collector Customs Collectorate of Preventive T-10, Railway Station Naveedur Rehman Bugvi distributed work among appraising officers and office superintendent. According to the notification Appraising Officer Naveed Iqbal Cheema will also perform his duties in import appraisement and external/internal audit. Appraising Officer Sidra Nayyer Zaidi who is currently on training course will perform her duties in import/export appraisement, law and internal audit department.
court approves remand of accused involved in cigarettes smuggling LAHORE
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he Special Court of Customs Taxation and Anti-Smuggling handed over an accused to the customs investigation authorities for two days who was arrested from G.T. Road near Wazirabad while making an attempt to smuggle huge quantity of smuggled cigarettes. Accused Muhammad Iqbal was produced before the customs court by the investigation team where the team sought his remand for three days. The customs court approved his custody on physical remand for two days and asked the investigation team to complete investigations within two days and produce him before the court on next date of
Dar’s property confiscated, Sc told day after an accountability court asked the Punjab government to confiscate three properties owned by former Finance Minister Ishaq Dar’s, his wife and son, the Supreme Court was informed on Tuesday that his properties in the country had been confiscated and that efforts to extradite him were now underway. “NAB has confiscated the properties,” the additional attorney general told the Supreme Court, adding that ‘talks are being held with the UK government for Dar’s arrest’. Following the attorney general’s remarks, the case’s hearing was adjourned till an unspecified date. Dar has been declared an absconder in a reference pertaining to his assets. Accountability court judge Mohammad Bashir, in his order issued on an application of NAB, had said that plots owned by the family had been placed at the disposal of the provincial government, within the meaning of Section 88(7) of the Criminal Procedure Code. –CB Report
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hearing. Earlier the Customs antismuggling squad seized a bulk quantity of the foreign branded smuggled cigarettes during a special checking on G.T. Road near Wazirabad on 1.10.2018. The accused was smuggling the foreign branded cigarettes in a truck from Lahore to Rawalpindi, when anti-smuggling squad seize 95000 packets of foreign branded (Benson & Hedges and Dunhill) smuggled cigarettes from a truck bearing registration no: LES- 9933. He said that the worth of the seized cigarettes was Rs20 million. ASO has also arrested the accused and registered a case against the accused under Customs Act 1969. Meanwhile, Special Customs Court of Narcotics and Anti-Smuggling Judge Arshad Masood awarded six years and six months imprisonment to a Nigerian national who is involved in smuggling of heroin.
customs I&I foils bid to smuggle nDp goods near Sagian Bridge LAHORE
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irectorate of Customs Intelligence and Investigation impounded a container loaded with non-customs paid hair gel and tooth brushes near Sagian Bridge on Wednesday. Sources told Customs Today, that Director Customs Intelligence and Investigation Rubab Sikandar received credible information about smuggling of non-duty paid goods. She immediately constituted a team under the supervision of Deputy Director Usman Tariq which also includes Superintendent M. Sarwar, Intelligence Officer Zulfiqar Ali Dogar, Agha Sultan Haider and Nadeem Ehsan. Sources told that the above mentioned team intercepted a container near Sagian Bridge and recovered
Deputy collector Ittrat hussain distributes work among sepoys
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eputy Collector Customs Preventive Syed Ittrat Hussain issued a notiSication for distribution of work among eight sepoys performing their duties in different shifts at Allama Iqbal International Airport. According to the notiSication Sepoy Abdul Rehman Abid who is performing his duties in Departure CFO shift-I will also perform his duties in shift-IV in Arrival Hall, Sepoy Amjad Ali Bhatti is also perform his duties at Departure Hall in shift-IV while Sepoy Mushtaq Ahmed will also look work in
shift-I of Departure CFO. The notiSication further stated that Sepoy Mohammad Mushtaq who is currently posted in Departure CFO shift-IV will also perform his duties in Arrival Hall in shift-I, Sepoy Abdul Ghaffar will also perform additional duties at Haj Gate shift-II. Sepoy Muhammad Ashfaq will perform his duties in Haj Gate in shift-I bedside his current duties while Sepoy Mohammad Ashraf who is currently posted at Cargo and Project Gate will perform his duties in shift-I of Cargo. –CB Report
Sive thousand one hundred and sixty six kilograms hair gel and foreign origin tooth pastes. Sources told that the owner of the goods was later identiSied as Jahangir Khan of Shah Alam Market Lahore. During initial investigations it was revealed that all
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the seized goods were cleared from Port Qasim through mis-declaration and caused a loss of Rs1 million to national kitty. Sources told that customs team after registering a case of smuggling against the owner of the goods started investigations.
fBR notifies new regulatory duty rates he Federal Board of Revenue (FBR) has notiSied new regulatory duty rates on Tuesday. Sources said that the FBR has entered new rates of regulatory duty in the online customs clearance system deleting the old notiSication. According to details, duty on imported honey has been increased from 20 to 30 per cent and duty on cheese from 35 to 50 per cent. A regulatory duty of 10 per cent has been imposed on mushrooms, olives and other imported vegetables will have a 10 per cent regulatory duty imposed on it along with
imported seafood. A duty of Sive per cent has been put on imported paper and electric sound ampliSier, while the Sive percent increase has been imposed on sports goods and shoes. The duty on imported furniture has been increased from 10 to 45 per cent while electrical items will see an increase of 10 per cent duty. Imported marble will have a 10 per cent duty, while there will a Sive per cent increase in duty on plastic items. For cars, there will be a 10 per cent increase in duty on 4×4 vehicles, and same for car parts. –CB Report
nIIA customs arrests Iraqi passenger, recovers 7 falcons
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ustoms staff deputed at New Islamabad International Airport (NIIA) arrested a Dubaibound Iraqi passenger and recovered 7 falcons from his luggage. Additional Collector Nisar Ahmad Phularwal while talking to Cus-
toms Today said Collector ZulSiqar Ali Chaudhary received credible information about smuggling of falcons. He directed Assistant Collector Farheen Zahra to enhance checking in arrival and departure lounges. During checking of passengers, customs team intercepted an Iraqi passenger Abbas Sadhil Ahmed and recovered seven falcons, which were tactfully concealed in the luggage.
The additional collector said that the Iraqi national will be departed after formalities. She added that the falcons are handed over to Wildlife Department after completion of all legal requirements while the accused has been arrested. The value of falcons is estimated at Rs3.5 million while further investigations are still under way. The sources in Wildlife Department told
Customs Today that without getting NOC from Foreign Ministry, no one can can export rare species. They added that Pakistan cannot issue export permits for falcons as this is not only against the local wildlife protection laws but also in violation of various nature conservation conventions and agreements signed by the country which ban export of rare species.
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ollector Collectorate of Customs Ashraf Ali said that unprecedented revenue collection during Sirst quarter Fiscal Year 2018-19 has been achieved due to enhanced surveillance on clearance at Customs Stations Taftan, Chaman, and NLC Dry Port Quetta, strengthening of the department’s check posts and speedy disposal of seized goods and vehicles through auctions. He expressed these views while talking with Customs Today during an interview. Collector Ashraf said that the Collectorate generated Rs5.9 billion during the Sirst quarter (July to September FY18-19). The amount collected during the Sirst quarter was 42% higher than the revenue collected during
Friday, October 19, 2018
the same period of previous Fiscal Year 2017-18. The collector said that collection of customs duty (CD) rose to Rs2.107 billion and sales tax (ST) to Rs2.592 billion in the period under review, exceeding the respective Sirst quarter targets of Rs1.517 billion and Rs1.782 billion. Similarly against the income tax (IT) target of Rs788 million, the Collectorate collected Rs1035 million while the federal excise duty (FED) collection was Rs105 million against
at the aid th s f a r h illion tor As s5.9 b R d e t collec a ly to gener ter (Ju orate t r c a e u l l q nt co st amou the fir e g h T n i . r ) 9 du rter fY18-1 st qua r mber fi e t e p h e S ring t venue ted du t h e re n a h collec t r od of highe e peri % m 2 a 4 s s e wa 8 ring th 017-1 ed du t c e l Year 2 l l a co c s i us f previo
the given target of Rs91 million. He said that an amount of Rs207 million was realized through disposal of seized goods and vehicles from July to September 2018 and Rs29.79 million collected through recovery of outstanding dues. He further said that comprehensive anti-smuggling strategy led to impounding of 250 non-duty paid vehicles whereas an amount of Rs203 million was collected through seizure of Iranian origin diesel. The worth of total miscellaneous goods involved in smuggling seized by the Collectortae is Rs500 million while during same period Rs270 million of goods were taken into custody. The Collector said that huge quantity of Indian origin gutka worth Rs50 million and detention of Zaireen loaded buses carrying smuggled goods coming from Iran were also among the leading seizure cases of the Collectorate.
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EDIToRIAL
Imf’s stipulation for transparency
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hristine Lagarde, Managing Director of the International Monetary Fund, during the recently held World Bank/IMF annual meeting in Indonesia stated that the Fund would need to know the extent and composition of a country’s debt, including sovereign debt and state-owned enterprise debt, “so that we can actually really appreciate and determine the debt sustainability… if and when we consider a programme.” The reference was to Pakistan as it was subsequent to Federal Finance Minister Asad Umar formally requesting an IMF bailout package during the annual meeting. Lagarde’s statement is reminiscent of the warning by the US Secretary of State Mike Pompeo delivered on 30 July in a television interview, five days after Pakistan Tehreeke-Insaf (PTI) emerged as the party likely to form the next government, that any potential IMF bailout package to Pakistan should not provide funds to pay off Chinese lenders with an unambiguous reference to terms of engagement under the China Pakistan Economic Corridor (CPEC). Pompeo stated: “Make no mistake. We will be watching what the IMF does. There’s no rationale for IMF tax dollars, and associated with that American dollars that are part of the IMF funding, for those to go to bail out Chinese bondholders or China itself.” The growing number of critics of the PTI’s economic policies to-date - including those who had urged the Khan administration to hit the ground running (clearly defined as firming up an IMF bailout package and from other sources, including multilaterals and bilaterals as soon as possible) given the appalling state of the economy the party inherited - are pointing to the irony that the Americans were aware of the lack of funding options well before the PTI’s economic team was. Be that as it may, Lagarde confirmed on 10 October that Pakistan had formally requested financial assistance during her meeting with finance minister and State Bank of Pakistan Governor and added that “an IMF team will visit Islamabad in the coming weeks to initiate discussions for a possible IMFsupported economic programme. We look forward to our continuing partnership.” The demand by the IMF is neither inappropriate nor indeed unexpected.
mega housing Initiative P
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rime Minister Imran Khan while addressing the launching ceremony of Naya Pakistan Housing Programme (NPHP) committed to setting up a Housing Authority within 90 days that would act as a facilitator, by providing a one-window facility, to constructing the 5 million houses during the next Sive years as per the Pakistan Tehreek-eInsaf’s (PTI’s) manifesto. The objective is to not only provide housing for those with a monthly earning of 10,000 to 25,000 rupees but also to generate employment opportunities as the construction industry provides
fodder to 40 downstream industries. However, details of Sinancing were missing from the launching ceremony though the Prime Minister referred to public-private partnership while Secretary Housing noted that around 20 billion dollar foreign direct investment is expected in this sector – an estimate based on the queries he received from prospective investors from one country alone. But a few words of caution with respect to the optimism with respect to NPHP. The construction sector, including ongoing projects under the umbrella of China Pakistan Economic Corridor, contributed from 40 to 60 percent to gross Sixed capital formation last Siscal year with linkages to 60 in-
dustries. And according to the Economic Survey 2017-18, cement registered a high growth of 11.9 percent contributing 2.7 percent to Gross Domestic Product while State Bank of Pakistan data reveals that the construction industry received a net inSlow of 35.7 million dollars in August last year. In other words, construction was not a neglected sector though one would assume that there was no capacity of the majority of Pakistanis to own a house. The Prime Minister, cognizant of many prospective foreign investors in the country’s real estate/construction sectors scammed by the unscrupulous in the past, stated that he personally would oversee the NPHP; and added “we are forming a land
bank to get information of federal and provincial governments’ lands and the government will provide only land while investment will be made by the private sector.” The Prime Minister also stated that the government will collect data of katchi abadis to relocate people in the houses that would be built with ownership rights. The Prime Minister’s intent is clearly laudable notably to provide houses for a large number of people in this country who are unable to purchase land given the escalating costs. Unfortunately, the devil is in the details, as details provide the means to assess the success or otherwise of any scheme, and like other laudable schemes of Prime Minister Khan, details were not provided during the launch of the NPHP.
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Customs Court awards six years jail term to accused involved in heroin smuggling LAHORE: Special Customs Court of Narcotics and Anti-Smuggling Judge Arshad Masood awarded six years and six months imprisonment to a Nigerian national who is involved in smuggling of heroin. The Special Court also imposed fine of Rs8 million on the accused person. According to the details, that a Nigerian national who is identified as Sumeul was caught red-handed from Allama International Airport while he was making an attempt to smuggle heroin powder which he tactfully concealed in the capsuls. During physical checking customs team recovered huge quantity of heroin from his possession. Sources said that special court also directed to deport the accused person after completion of his jail term and fine.
court grants bail to suspects booked in mobile phones smuggling KARACHI
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he Customs Court granted bail to eight suspects against the surety of Rs200,000 each, who were booked in a case of attempting to smuggle 761 mobile phone sets of different brands worth Rs8,002,000. Counsels for suspects namely Khan Muhammad, Altaf Ahmed, Asghar Khan, Ali Hassan, Amanullah, Saleh Muhammad, Allauddin and Amir Hamza filed bail applications and argued that prosecution mis-leaded the court and they have been falsely implicated in this case, who are ready to face trail. After the hearing, court granted their bail and directed them to appear before the court on next date of hearing. On last date of hearing, investigation officer of Customs Colletorate, Hyderabad Preventive submitted interim charge-sheet and informed that on actionable information, a team of customs department along with other law enforcement agencies inter-
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Friday October 19, 2018
National
TIR transport will help expand trade across borders: Dg Javed ghani P
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akistan’s Sirst Transports Internationaux Routiers (TIR) transport reached Kabul (Afghanistan) via Peshawar and Jalalabad. Talking with Customs Today, Director General Transit Trade Muhammad Javed Ghani said TIR system offers a solution for harmonised processes at borders across the region and “we should also keep focus on cross-border transport as transit has become much more streamlined and secured”. He said this is another milestone in our strategy to streamline transport and trade in the region, which will beneSit the economies and the communities along these corridors in Pakistan and beyond. It is important to mention here that this launch follows recent meetings in Istanbul between Afghanistan and Pakistan – where TIR was highlighted as the customs standard to facilitate transport, and transit between the two countries and the two TIR actors agreed to initiate test operations from Karachi to Kabul and vice versa.
Saving time and costs were already reported by an Afghan transport operator last week, which sent three trucks from Torkham, Afghan-Pakistan border crossing point, to Dushanbe, Tajikistan using TIR. TIR was also particularly useful in avoiding large trans-ship-
ment costs at the border with Tajikistan. There is now full momentum to use TIR in more transit routes from neighboring countries including Pakistan and Iran to Central Asia to reduce the cost and time of regional transports even further. The activation of these corridors,
which straddle East and West, is critical to the development of the region and the advancement of trade. Next steps include the activation of the China-Pakistan Economic Corridor (CPEC) under the TIR system, which will connect China with the Middle East and Africa.
Sc bars cellular companies from levying additional taxes ISLAMABAD
cepted Toyota Saloon GLI car bearing registration number BLX-830, Toyota Saloon GLI car bearing registration number AWB407 and Toyota Land Cruiser jeep bearing registration number BF-6573 near Larkana Range. He submitted that during the search of the said vehicles, customs team found 761 mobile phones sets of different brands valuing at Rs8,002,000 and asked suspects namely Khan Muhammad, Altaf Ahmed, Asghar Khan, Ali Hassan, Amanullah, Salah Muhammad, Alluddin and Amir Hamza to produce lawful documents; however, they informed that they all are drivers and do not have any lawful documents of said mobiles phones.
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he Supreme Court of Pakistan has ordered all cellular companies to remove additional taxes imposed on postpaid connections. A three-member bench of the apex court headed by Chief Justice of Pakistan (CJP) Mian Saqib Nisar heard the case wherein Advocate General Ahmad Awais told the court that the Punjab government was incurring a loss of Rs2 billion per month due to the additional charges. On the occasion, the Sindh advocate general informed the bench that the provincial government was also incurring a loss of Rs1 billion per month. “If you stop charging commission, these losses can be reduced,” remarked Chief Justice Nisar and ad-
vised the provinces to curb corruption. Further, the top judge criticised the excessive service charges billed to the postpaid consumers. “If you buy Rs100 worth of credit, Rs25 are deducted. What are these service charges?” the top judge wondered.
The tax deducted on each call is received by the national exchequer, however, Rs25, deducted as service charges, are not given to the board, said the Federal Board of Revenue’s (FBR) legal representative. The federal and provincial gov-
ernments requested the court to grant some time to submit their responses. The CJP remarked that the court will hear the case later and adjourned the hearing on additional taxes on mobile phone cards and easy loads till six months. Statistically, current taxes charged on postpaid subscriptions include a withholding tax of 12.5% and General Sales Tax (GST) at either 17.5% or 18.5%. Back in June, the Supreme Court removed taxes and administrative charges of mobile phone companies for prepaid users. The apex court had asked the FBR earlier to find a way to tax mobile phone customers in a manner so that only those under the tax net have to pay the taxes. With the suspension of withholding taxes on prepaid services, the federal govt is losing around Rs. 120 million per day.
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M/s Telenor approaches SHC challenging notice on import of HP Server for Easypaisa portfolio Friday October 19, 2018
National govt to pay refunds of Rs1b to exporters soon: hammad Azhar
KARACHI: M/s Telenor Pakistan Private Limited approached the Sindh High Court (SHC) against demand notice for extra duties and taxes on import of HP Server for Easypaisa portfolio. Counsel for the petitioner stated in its constitutional petition that petitioner imported HP Server for Easypaisa portfolio. Later an audit observation dated 19/07/2016 was served to petitioner falsely accusing the petitioner for clearing imported ‘servers for telecommunication use’ through mis-classification under PCT heading 8471.5000 as servers for computers.
fBR issues notice to mansha Bomb for hiding Rs10 million assets
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he government’s first priority is to solve the problems of exporters to strengthen national economy while the government is also working to devise a strategy to pay over Rs1 billion refunds to exporters as soon as possible. Talking with Customs Today, Special Assistant to Prime Minister on Revenue Hammad Azhar said that the government wants to harmonies the tax system within the Federal Board of Revenue (FBR). He added that the government is building three years long legal framework order with alliance of NADRA. He said that the government is working to make the tax return filling system very simple, so the taxpayer could file their returns easily. He added that he held meeting with exporters association where he offered them different options but he is still waiting for output from their side to made final decisions regarding their needs.
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Shc seeks reply on plea filed by m/s orient Energy Systems he Sindh High Court (SHC) issued notices to the customs department and deputy attorney general directing them to file their para wise comments on a petition filed by M/s Orient Energy Systems Private Limited against imposition of super tax on power generation equipment, compressors, earth moving equipment and chilling plants and other goods. A two-member bench, headed by Justice Aqeel Ahmed Abbasi was hearing the matter. During the hearing, counsel for the importer stated in its constitutional petition that petitioner is a private limited company and principally engaged in a business of sales, services and rental of power generation equipment.
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lleged notorious land grabber Mansha Bomb, involved in over 80 cases of land grabbing, has also defrauded the Federal Board of Revenue (FBR) and paid Rs800 as income tax for Year 2017-18, it is learnt here. OfSicial sources said that Mansha Bomb has showed yearly income of Rs440,000 in the income tax returns of FY2017-18 and declared only Rs1.84 million of overall assets in his tax returns for the said year. Sources added that Mansha Bomb also demanded refund from the FBR for years FY 2017-18. Sources further added that after the investigations and inquiry, FBR has come to know that Mansha
Bomb has over Rs10 million of assets while FBR also issued notice to alleged notorious land grabber Mansha Bomb but FBR has yet not received any response. Meanwhile,
Supreme Court has already ordered the authorities concerned to arrest Mansha Bomb, who is accused of operating a land grabbing group in Lahore. It is important to mention here
that Mansha Bomb is involved in grabbing dozens of private plots as well as state land worth billions of rupees on the Main Boulevard link College Road with Wapda Town.
gwadar customs seizes huge quantity of non-duty paid tyres worth Rs8m C
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ollectorate of Customs team huge quantity of non-duty paid tyres and worth Rs 8 million including vehicle being used for smuggling. Sources told Customs Today on Tuesday that Deputy Collector Gawadar Junaid Mehmood received information that some smugglers are trying to smuggle a number of non-duty paid tires from Gwadar to different cities. After receiving this information, he constituted a raiding team under the supervision of Customs Preventive Inspector Waris Ahmed and others. The team, during a search operation on Jewani Road intercepted a vehicle bearing registration no: GNM-7462. During search, the team recovered more than 300 non duty paid tyres and 150 valued
at Rs 8 million. The team seized all smuggled items and arrested truck
driver, who were later identiSied Mirza Shahid. Sources told that cus-
toms ofSicial started investigations from accused person.
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FBR hikes RD up to 90% on imported luxury vehicles ISLAMABAD: The Federal Board of Revenue (FBR), through SRO 1265(I)/2018, has increased regulatory duty up to 90 per cent on import of luxury vehicles. The FBR issued the above-said SRO to enforce regulatory duty on import of luxury and non-essential items in order to reduce trade deficit and save foreign exchange.
govt decides to slash tax rates on stock trading ISLAMABAD
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he federal government has decided to cut the advance income tax and capital gains tax on the sale and purchase of shares. The government accepted stockbrokers’ demands after a delegation of PSX Stockbrokers Association on Monday held meetings with Finance Minister Asad Umar, Minister for State on Finance Hammad Azhar and the Securities and Exchange Pakistan (SECP) Chairman Shaukat Hussain. The delegation is scheduled to hold another meeting with the SECP chairman and representatives of the Federal Board of Revenue (FBR). It will discuss their long-standing demand to reduce tax rate under section 233A of Income Tax Ordinance 2001 and rationalisation of Capital Gains Tax (CGT).
Friday October 19, 2018
National
customs ASo busts another huge quantity of betel nuts consignment near Saddar
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he Federal Board of Revenue’s (FBR) Directorate General of Broadening of Tax Base wing has sent nearly 340 notices to potential tax evaders. According to sources, the BTB wing has a presence in only three cities and its authority restricted to unregistered persons. Currently, there are over three million registered individuals who aren’t filing their tax returns, which means the wing cannot take any action on them. The operations wing of the FBR is responsible for proceeding against these registered individuals; however, its workforce is concerned with attaining the monthly revenue collection targets. A big percentage of the identified high net worth individuals belong to areas that don’t fall under the purview of the federal government’s tax jurisdictions. As an example, out of 220 identified cases chosen for forwarding notices in the second badge, around 75 live in Azad Jammu and Kashmir and in tax exempted federally and provincial administrated tribal areas. The tax regulator on Monday was unable to tell the Finance Minister Asad Umar regarding these operational hiccups during his first visit to the FBR headquarters.
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The delegation was led by the association’s president Hammad Kehar who shared their concern on stock market’s continuous slide with the SECP chairman and presented a list of “33-demands and suggestions” to the finance minister. The brokers urged the government to intervene and stop the spread of rumours and misinformation which is taking its toll on the stock market. The delegation included vice-president Munir Khanani, generalsecretary Adil Ghaffar and members Ghulam Mujtaba, Bilal Farooq and Farrukh Khan. It also met Minister for State on Finance Hammad Azhar and raised their demands related to the taxation issues. The minister called in Amjad Tiwana, Special Assistant to the FBR chairman, to discuss income tax matters following which it was decided to reduce the advance tax under Section 233A of the Income Tax Ordinance 2001 from 0.02pc to 0.01pc.
fBR sends notices to 340 tax evaders
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he campaign of the Collectorate of Customs Preventive, AntiSmuggling Organization (ASO) against the smuggling of betel nuts is going on full swing during which several tons of betel nuts have been recovered after successful raids at the entry and exit points of the metropolis along with railways routes. Cus-
toms Preventive ASO Headquarters Deputy Collector Muhammad Faisal received authentic information regarding the presence of the smuggled betel nuts along with other contraband items worth millions of rupees in a market situated near the area of Saddar. A team, under the supervision of Deputy Collector Muhammad Faisal, conducted a successful raid at the Joriya Market Godown. During the search of the Joriya Market, the team
of the Customs Preventive’s Anti Smuggling Organization found several sacs of contraband items dumped and hidden in the secret places of the godown. All the sacs were examined thoroughly and the team estimated one thousand and twenty six sacs containing 48,075 kilograms smuggled betel buts worth Rs12,787,950, along with ten cartons containing 442,000 pouches weighting 884 kilograms betel buts worth Rs6,405,000.
court grants remand of suspect booked in betel nuts smuggling
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KARACHI
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he Customs Court sent suspect namely Muhammad Imran to Central Jail on judicial remand, who was booked in a case of attempting to smuggle non-duty paid 2,486 kilograms betel nuts. Investigation ofSicer produced the above-mentioned suspect before the court and informed that on a credible information, a team of prosecution intercepted M/s Ayaz Coach DGS-745 and during the search, team recovered 2486 kilograms betel nuts. He submitted that during the search, driver Muhammad Im-
ran was asked to provide lawful documents; however, he failed to produce any lawful documents; therefore, the goods were seized and the suspect was also taken into custody. He said the suspect is required for further investigations; therefore, the court may send him to jail on judicial remand. After the hearing, court sent him to jail and directed jail authorities to produce him before the court on next date of hearing. According to the prosecution, the case was registered against the suspect and others for violation of Customs Act, 1969 and other related laws. Meanwhile, The Customs Court granted pre-arrest bail to a suspect
namely Muhammad Abbas Hashmi, proprietor of M/s Progressive Movers Clearing Agency, who is nominated in a case of attempting to smuggle 54,180 kilograms betel nuts. Counsel for the applicant Siled pre-arrest bail application and argued that his client is innocent and is falsely implicated in this case, who is ready to face trial; therefore, court may grant his bail till Sinal disposal of this case. After the hearing, court granted him bail against the surety of Rs500,000 and issued notices to the customs department, investigation ofSicer for next date of hearing. The court also directed the petitioner to appear before the court on next date of hearing for conSirmation. According to
the prosecution, Customs Preventive Anti-Smuggling Organization registered First Information Report (FIR) that on an actionable information that two containers arrived from Jabel Ali, UAE in the name of the above-mentioned importer are lying at Karachi International Container Terminal (KICT) stuffed with betel nuts instead of plastic Silm rolls declared in the respective import documents. Investigation ofSicer informed that on information, a team visited the said spot and found 450 gunny bags bearing marks & no: “JW” each weighing 60 kilograms containing foreign-origin betel nuts total 27,000 valuing at Rs7,236,000 and 453 gunny bags bearing marks & no: “Super.
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World Customs
Iran Reports 46% Drop In Condensate Exports
Iran’s condensate exports fell by 46 percent over the first six months of the Iranian year, from March to September, local news agency Isna reported, citing customs data. Quoting the Iranian-language source, reported condensate exports over the period totaled 4.644 million tons, compared with 8.629 million tons a year earlier. Condensate is a major export product for Iran, making up a large portion of its total oil and gas exports. Buyers of the superlight crude are under more pressure than importers of “regular” crude since there are few alternate suppliers.
Friday October 19, 2018
Iran’s petrochemicals philippines customs intercept Exports See 24% Rise ₱16m worth of smuggled onions
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he Bureau of Customs captured 16 million (€250.000) worth of red onions smuggled from China. Customs Commissioner Isidro Lapeña said the shipment of ASD Total Package Enterprises Inc. was intercepted at the port on the suspicion that it contained mis-declared agricultural products. The eight containers from ASD were declared to contain 20,000 cartons of fresh apples when they arrived at MICP on August 14. However MICP authorities found bags of red onions covered by boxes of apples. Lapeña said the onions were declared as apples so importers could evade paying the right duties and taxes. Meanwhile, A container full of dried fruits from the Philippines arrived at Wusong Port, Shanghai, mak-
As Russia pivots to the east, trade with china is booming rade turnover between Russia and China has been rapidly growing, rising 30 percent to reach $77 billion from January to September, statistics from China’s General Administration of Customs show. The volume of exports from China to Russia has grown by almost 13 percent, exceeding $35 billion. Imports of Russian goods surged by around 40 percent to $42 billion, said the customs service. Last month, trade turnover between the two countries was more than $9 billion. China is Russia’s largest trading partner, accounting for 15 percent of Russian international trade in 2017. The two countries expect bilateral trade to hit $100 billion this year and plan to steadily boost it to $200 billion by 2024.They are also promoting settlements in rubles and yuan, bypassing the US dollar and other Western currencies. –CB Report
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ing it the Sirst batch of foreign foods to reach China for the upcoming import expo, according to Shanghai Customs Thursday. Dried fruits including mangoes, bananas and durians from 15 Filipino companies were shipped to China, serving as a testimony of the extensive attention small- and medium-sized enterprises overseas paid to China’s International Import
Expo (CIIE), scheduled for Nov. 5-10 in Shanghai. To prevent biological invasion and better facilitate the imports, Shanghai Customs has taken several measures including customs clearance solutions according to speciSic countries and regions, drafting negative lists for market access, and cooperating with local agricultural and forestry experts.
Sierra Leone cancels $300 million airport deal with china
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ierra Leone has nixed plans to build a controversial, $318 million airport outside the capital of Freetown with a Chinese company and funded by Chinese loans. The mega project, which was due to be completed in 2022, had been commissioned by the previous president Ernest Bai Koroma in March this year. Its cancellation comes amid cooling enthusiasm in both Pakistan and Malaysia for Chinese
loans backing large-scale infrastructure projects in recent months. But Sierra Leone’s decision is the Sirst time an African government has canceled an already announced, major China-backed deal. “After serious consideration and diligence, it is the Government’s view that (it) is uneconomical to proceed with the construction of the new airport when the existing one is grossly under utilized,” said. –CB Report
he Iranian Customs OfSice released the Sinal Sigures of halfyearly exports of non-oil goods, including petrochemicals, gas condensates, and other commodities. The data shows that the revenue earned from the export of petrochemical products in the current year’s Sirst half has risen by 24 percent in comparison to the previous year. Meanwhile, the value of exported products, excluding petrochemicals and gas condensates, has increased by 20% in the 6-month period. In March 21-September 22, Iran exported more than $23 billion in non-oil goods, up 13 percent compared to the year before. In August, CEO of National Petrochemical Company (NPC) Reza Norouzzadeh said Iran’s petrochemical industry was “unsanctionable” and that the exports would continue on schedule. The US has imposed fresh sanc-
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tions on Iran after withdrawing from the 2015 Iran nuclear deal and is planning to push Iran’s oil exports down to zero by November 4. Meanwhile, Iran traded 343,170 tons of non-oil commodities worth $408.18 million with Japan during the Sirst Sive months of the current Siscal year. This registers a 42.34% and 12.73% decline in tonnage and value respectively compared with last year’s corresponding period, latest data released by the Islamic Republic of Iran Customs Administration show. Iran’s exports to Japan stood at 290,056 tons worth $155.19 million, down 46.08% and 30.25% in tonnage and value respectively year-on-year. Japan was Iran’s 14th major export destination during the period. Iran mainly exported gas condensates, methanol and Sloorings to Japan during the Sive-month period. Japan exported 53,113 tons of goods worth $252.98 million to Iran, down 7.19% in tonnage and up 3.16% in value YOY.
china RQfII quota at 640 billion yuan
he quota in the RMB Qualified Foreign Institutional Investors (RQFII) program came in at 640.2 billion yuan (about 93.2 billion US dollars) as of September 29, according to the State Administration of Foreign Exchange (SAFE). The amount was up 12.7 billion yuan from the previous month, said SAFE. China’s currency, the yuan, is convertible for trade purposes under the current account, while the capital account, which covers portfolio investment and borrowing, is largely run by the state in an ef-
fort to control capital flows in and out of the country. To gradually open the capital account, the government introduced the QFII and RQFII programs in 2003 and 2011 respectively. They give foreign investors the right to move money into the account to encourage controlled flows. The RQFII program is currently open to countries and regions including the Hong Kong Special Administrative Region, Britain, Singapore, France, South Korea, Germany, Qatar, Canada, Australia and Luxembourg. –CB Report
uS customs Agency hopes to Evaluate Blockchain pilot by Dec
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he US Customs and Border Protection (CBP) plans to evaluate its foray into blockchain technology by the end of the year. Members of a government advisory group, the Commercial Customs Operations Advisory Commit-
tee (COAC), met on October 3 to advocate for regulatory reform around different trade-focused areas, with “emerging technologies” coming up as a point of conversation. In particular, US Customs and Border Protection (CBP) representatives said the agency has concluded its latest round of testing blockchain technology for supply chain management, according to a press release
published. CBP is working to determine if a blockchain-based platform can streamline the agency’s efforts to track shipments around the world as part of the soon-to-bereplaced North American Free Trade Agreement (NAFTA) and the Central American Free Trade Agreement (CAFTA), as previously reported. Celeste Catano, global product manager at BluJay Solu-
tions, a supply chain software company working with the agency, said CBP is currently evaluating its proposed use of blockchain technology, adding that “we hope to have some recommendations by the December meeting.” “We just completed our testing last week on the blockchain solution for NAFTA and CAFTA verifications,” Catano told the meeting’s attendees.
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India picks Iranian firm to run Chabahar port Iran : India Ports Global has picked Bandar Abbas-based Kaveh Port and Marine Services company to run the Chabahar port in Iran as an interim arrangement for about 18 months from mid-June as India treads cautiously on operationalising the port in the back drop of sanctions being re-imposed on the Persian Gulf nation by the United States. The selection of an Iranian operator was also necessary to comply with the contractual time lines particularly because efforts to pick an Indian firm to manage, operate and maintain (MOM) the container and multi-purpose terminals at Chabahar port have been delayed due to commercial and feasibility concerns, a government official said.
Abu Dhabi customs unveils new trade platform bu Dhabi Customs has unveiled Mamar, a modernised online single-window platform to facilitate trade for Abu Dhabi across seaports at first, followed by land, air, and post. The platform has been launched in collaboration with Maqta Gateway, an Abu Dhabi Ports subsidiary. The announcement was made during Gitex Technology Week 2018, which is taking place at the Dubai World Trade Center, in Dubai, UAE. In a UAE first, Mamar utilises existing features from Abu Dhabi Customs’ e-services and the Maqta Port Community System (mPCS), creating a fully integrated system following international messaging standards that allow seamless handling of import, export, and transshipment transactions, as well as the payment of customs duties for all types of cargo, whether via land, air,
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or sea. The system is designed to increase transparency, reduce costs, and provide customers with speedy and efficient access to information regarding transactions, shipments, and logistics in real time. Abu Dhabi Customs’ technical teams have worked to operate MAMAR, to significantly modernize the system. This platform will offer over 14 additional digital services including preclearance, exit and entry certificates for transit shipments, customs declarations for sea, air, land, post and free zones, along other financial services relating to “Maqasa” clearing services, customers’ accounts, and statistics in addition to interactive data dashboards that track commercial transactions through a single window.
Ports & Shipping
Diverting traffic from Dover ‘would cost £2.5 billion’ T
LONDON
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he UK government recently suggested sending food exports to the Netherlands and Belgium via ports in Essex and Suffolk, rather than shipping via Dover to France if the French government imposes new security checks that delay trafSic to Calais in the event of a ‘no deal’. The proposed routes include Harwich to Rotterdam and Felixstowe to Vlaardingen, in the south of the Netherlands. As the ruling Conservative Party met in Birmingham for its annual party conference, the Port of Dover reminded the government that it handles more international lorries than all other UK ports combined, with up to 110 miles of freight trafSic passing through the port every day via 120 ferry sailings. With around half of the UK’s trade being with the European Union and with the just-in-time supply chains that Slow between them keeping factories busy and shops full, the port stressed that delivering a frictionless solution at Dover was vital. Tim Rear-
don, head of EU Exit at the Port of Dover, said: “It is clearly good news that the government recognises the need to keep trafSic Slowing through Dover, not just for the port but for everyone who relies on the goods in the lorries. “Trying to divert the trafSic through other ports is a non-starter. The port capacity isn’t there, and a whole new Sleet of ferries would be needed which simply doesn’t exist. “Successful future trade with Europe must be about delivering a realistic solution. That means a free-Slowing Dover, whose speed, efSiciency and capacity cannot be replicated without adding signiSicant cost to the supply
chain.” Dover has also been at the centre of contingency planning to minimise disruption in the event of a nodeal Brexit. The port has been working with government for months to deliver the plan, outlined in last October’s Customs Bill white paper, for lorry trafSic to be pre-notiSied to customs so that vehicles do not need to be held at the port. The ports said the Sirst fruits of that work can be seen in the technical notices published by the government on 24 September, which stated that health controls on animal and plant products from the EU would be carried out remotely, so that vehicles would not need to stop at the port.
Friday October 19, 2018
port kembla Lng Import Terminal, new South wales Australian Industrial Energy (AIE) plans to develop a liquefied natural gas (LNG) terminal at Port Kembla in New South Wales (NSW), Australia. AIE is a consortium of Squadron Energy, Marubeni Corporation, and JERA. The LNG import terminal will the first in New South Wales and will be named Port Kembla Gas Terminal. It will be capable of supplying up to 100 petajoules (PJs) of natural gas a year. The imported quantity will meet more than 70% of NSW’s current annual gas demand. AIE is making an estimated investment of A$200m ($143m)A$300m ($215m) in the project. An initial concept feasibility study of the project was completed in May 2018, while a front-end engineering design (FEED) study is underway. The project was granted Critical State Significant Infrastructure (CSSI) status by the NSW government in June 2018. The status is granted to projects which have significant economic, social and environmental benefits. The LNG terminal is anticipated to receive it’s first import of LNG in 2020.
‘gwadar port can be beneficial for Saudi Vision 2030’ BEIJING
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here have been solid indications that Saudi Arabia is interested in investing in the port city of Gwadar and other projects under the China-Pakistan Economic Corridor (CPEC). It is quite beneSicial for Saudi Arabia to participate in the megaproject as it helps link its economy with China’s and facilitates the successful implementation of Crown Prince Mohammad bin Salman’s Vision 2030, according to an article published by China.org. As part of a holistic plan, one of its main objectives is to increase diversity in the Saudi economy, providing jobs for the Kingdom’s young population and modernizing the country. Launching power plants and energy projects in Gwadar
could help diversify the Saudi economy as well as reduce its dependence on oil. In addition, Saudi Arabia can beneSit from the global trade trafSic at the port and widen its business opportunities. In the meantime, the UAE has also been helping provide amenities to locals in Gwadar. Running a container service connecting the cities of Sharjah, Abu Dhabi and Jebel Ali with Gwadar, the UAE has recently launched the Karachi-Gulf Express. If the investment plans materialize, the involvement of Saudi Arabia and the UAE would further boost Gwadar’s zone of inSluence and have a positive impact on the global economy in the long run. China already has excellent relations with these Middle Eastern states and such inclusions work very well both from the geo-economic and geopolitical standpoint. Though the nature and scope of investment is not con-
Sirmed yet, such a trend in investments Sirmly establishes the viability and feasibility of all other CPEC projects as well and completing the model city of Gwadar is the best way to showcase the entire “Slagship corridor.” With the possibility of the inclusion of Saudi Arabia, more Middle Eastern states and African states like the UAE and Egypt could also want to participate in such projects. Based on the principles of “openness and inclusiveness,” such collaborations project the ethos of the Belt and Road Initiative and provide a platform for China as well as other countries located near the routes or “corridors.” Explaining Prime Minister Imran Khan’s vision behind giving top priority to the rapid industrialization plan for the port city, the Planning & Development Minister Khusro Bakhtiar said, “We cannot afford to wait any longer as our economy does not have the luxury of time. Industrialization in this
port city is a low hanging fruit, considering its prospect of international connectivity and the suitable cost of transportation.” This one milestone can provide a plethora of opportunities that go with a blue economy and help rescue Pakistan from its economic travails. Giving Gwadar the level of a “stand-alone” project, preparations are underway to encourage friendly countries to invest in the next phase. Attaining international levels of development, Gwadar port can kick off full-scale operations and handle 300 million to 400 million tons of load of goods yearly once it reaches complete capacity. Enabling the largest ships to dock due to the harbor’s natural depth and layout, Gwadar would beneSit the entire region like no other port. Improving local infrastructure has also remained the main precondition for making Gwadar an attractive investment destination and showcases the project’s immediate value.
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ANF burns 11.5 ton narcotics, 103 ton prohibited chemicals Friday October 12, 2018
Business
PESHAWAR: The Anti-Narcotics Force (ANF) of Khyber Pakhtunkhwa ignited 11.5 tons of narcotics and 103 ton of prohibited chemicals at a ceremony held at Reggi Lalma, Firing Range. Judge Anti Narcotics Court Nusrat Yasmin was chief on the occasion. In her brief Nusrat Yasmin said the use of the narcotics was spoiling social fabric of the society and underscored the need for collective efforts to get rid of this menace.
pm assures traders of ‘no harassment’ by nAB, fIA ISLAMABAD
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rime Minister Imran Khan has said that no institution, including the National Accountability Bureau (NAB) and Federal Investigation Agency (FIA), will harass traders, adding that he wants a strong partnership between his government and business community. Talking to a delegation of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) here at the Prime’s Minister OfSice (PMO), he hoped that the country would move ahead with the strong partnership between the government and the business community.
‘khwaja brothers appears before nAB’ LAHORE
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He said that no institution will be allowed to harass the business community as they are already playing their focal role in Slourishing busi-
AccA upholds ‘Ethics’ as a key pillar for an emerging pakistan
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ML-N leaders Khwaja Saad Rafique and Khwaja Salman Rafique appeared before the National Accountability Bureau (NAB) Lahore here on Tuesday and recorded their statements in the Paragon Housing Society case. Fearing arrest by NAB, the Khwaja brothers have already secured protective bail from the Lahore High Court till Oct 24. The NAB is investigating the brothers for allegedly exchanging their 50-kanal piece of land with‘developed plots’measuring 40 kanal in the Paragon Housing Society through an agreement.
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ness across the country. The prime minister said that the business community will be taken on board for every decision pertaining to the
country’s economy. He reminded that contrary to the policies of the previous governments, the incumbent government will ensure fulSilment of all promises made to traders. Maximum facilitation to the trader and business community is the top of the government. The FPCCI delegation informed the prime minister of the problems facing the business community and industry of the country, and also presented different proposals for economic stability and industrial development in the country. Federal Finance Minister Asad Umar and Advisor to the Prime minister on Commerce Razzaq Dawood were also present on the occasion. The business community leaders felicitated the prime minister on assuming the ofSice.
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CCA the Association of Chartered Certified Accountants) has teamed up with Carnegie Council for Ethics in International Affairs and CFA Institute to celebrate this year’s Global Ethics Day To mark this landmark occasion, the organisations will be exploring how businesses are preparing for an ethical future in the face of threats and challenges presented by globalisation, technology and
human psychology. The three organisations are also producing a film interview series called ‘Ethics in business: in their own words’ which will feature a number of global CEOs, including: Helen Brand OBE, chief executive of ACCA, Paul Smith, president and CEO of CFA Institute and David MacLennan, chairman and CEO of Cargill discussing the greatest ethical challenge facing their respective organisations. ACCA Pakistan held an event in Islamabad which was attended by Rahat Kaunain Hassan, Partner Hassan Kaunain
Nafees Legal Practitioners and Advisers, Chaudhry Faisal Mushtaq, Founder and CEO Roots Millennium Schools, Faisal Rehman Malik, Senior Anchor. All these keynote speakers stressed on the value and importance of instilling the right mind-set and culture to drive businesses forward, ethically and sustainably. Sajjeed Aslam, Head of ACCA Pakistan highlighted, “It is not our opinions but our actions which are going to drive change. Ethics or lack of is going to be the key disruption alongside technology advancements.”
govt decides to form tax force curb money laundering ISLAMABAD
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ith the aim to stop money laundering, the federal government has decided to form a tax force after the final approval of Prime Minister Imran Khan. According to sources, offices for the task force will be established at airports and in all provinces. The federal interior secretary is expected to head the taskforce with provincial chief secretaries heading it on the provincial level. Members will also include officials from intelligence agencies, NAB, ANF and FIA. The decision to form the task force is part recommendations made by the Financial Action Task Force (FATF). In June, the FATF said Pakistan had made “a highlevel political commitment” to work with the global watchdog and Asia/Pacific Group on Money Laundering (APG) to strengthen its antimoney laundering and combating the financing of terrorism regime. Pakistan was formally added to the grey list of countries involved in providing monetary assistance to terrorism and related causes after a June meeting of FATF in Paris. FATF, a global body that combats terror financing and money laundering, had taken the decision to place Pakistan on its grey list during a plenary meeting in February this year.
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nAB receives about 3,99,861 complaints since inception ISLAMABAD
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ational Accountability Bureau (NAB) Chairman Justice (Retd) Javed Iqbal has said the bureau has received about 3,99,861 complaints from individuals and private/public organizations since its inception. During this period, NAB authorized 13,180 complaint verification,
8,587 inquiries, 4,124 investigations and filed 3,401 corruption references in respective accountability courts. Chairing a meeting here at NAB headquarters, he said, currently, 1,210 corruption references are under trial in respective Accountability courts across the country. The figures of complaints, inquiries and investigations are almost doubled as compared to same period of 2017 to 2018. The comparative figures for the latest one
year are indicative of hard work being put in by all ranks of NAB staff in an atmosphere of renewed energy and dynamism, where fight against corruption is being taken as a national duty. Increase in the number of complaints also reSlects enhanced public trusted in the NAB, he added. The Chairman said since inception, one of NAB’s major achievements has been recovery of around Rs. 297 billion of ill-gotten money which was
deposited in national exchequer. NAB’s operational methodology comprises of complaint veriSication, inquiry and investigation. Starting from the year 2017 which can be called basically a year of reinvigoration, we have moved with new zeal and effort. He said corruption is mother of all evils as it undermines economic development and deprives deserving persons of their due right. Justice Javed said Pakistan was committed to United Nations
Convention against Corruption (UNCAC) in eradicating corruption in all its manifestations by implementing its articles through three pronged Anti Corruption Strategy of Awareness, Prevention and Enforcement. The Chairman said NAB’s prime focus is on cases of cheating public at large by fraudulent Sinancial companies, bank frauds, willful bank loan defaults, misuse of authority and embezzlement of state funds by government servants etc.
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ICCI shows concerns over 26 percent fall in value of rupee ISLAMABAD: Ahmed Hassan Moughal, President, Islamabad Chamber of Commerce & Industry has expressed great concerns over the consistent falling value of rupee that has tumbled to over 26 percent within a year against dollar and called upon the government to take solid measures to bring some stability in the local currency as continued falling value of rupee would further enhance the cost of doing business and adversely affect business, industry, exports and the overall economy. Ahmed Hassan Moughal said that the value of Pak rupee was around Rs.105 against a dollar in October 2017 which has now come down to around Rs.133 against a dollar which was quite perplexing for the business community. It was badly disturbing business plans of private sector for expansion and growth.
nigeria wants to enhance trade ties with pakistan
Friday October 19, 2018
Chambers
IccI calls for fixed tax rate on small businesses to enhance tax net
SIALKOT
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igh Commissioner of Nigeria in Pakistan Maj-Gen (r) Ashimiyu A. Olaniyi Oon Mini has said that Nigeria was much keen to promote the strengthened mutual trade ties with Pakistan, saying that it was high time to develop Business-toBusiness contacts between Pakistan and Nigeria. He stated this while addressing an important meeting of Sialkot exporters held at Sialkot Chamber of Commerce and Industry (SCCI) here. SCCI President Khawaja Masud Akhtar presided over the meeting. SCCI SVP Waqas Akram Awan, Vice President Aamir Hameed Bhatti and Pakistan Gloves Industry’s Leader Muhammad Younas were also present on this occasion. Nigerian High Commissioner added that
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there were bright opportunities to establish joint ventures with Pakistan in textile, surgical, sports goods, gloves and other sectors. He said that several Nigerian companies were showing keen interest, in this regard. He said that Pakistan was reliable trade partner of Nigeria due to which Nigeria was considering to increase mutual trade volume between Pakistan and Nigeria as well. Nigerian High Commissioner assured the Sialkot exporters’ easy access to international trade markets of Nigeria , asking the Sialkot exporters to also divert their business activities to Nigeria. He said that Sialkot exporters must focus on diverting their business activities to Nigeria to take the complete trade and export-related benefits in Nigeria. He stressed the need of making all out sincere efforts to develop strengthened mutual trade ties between Pakistan and Nigeria, besides, assuring the regular exchange of mutual trade delegations and sharing the updated trade information about Nigerian trade between the two countries.
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he Islamabad Chamber of Commerce & Industry in collaboration with Institute of Cost and Management Accountants of Pakistan (ICMAP) organized a consultative session with the local business community to know about their tax issues and discuss their optimum solutions. Addressing the session, Ahmed Hassan Moughal, President, Islamabad Chamber of Commerce & Industry called upon the government to consider imposition of Sixed tax rate on small businesses that would help in enhancing the tax net of the country. He said that the current tax system was very complicated and government should develop a simpliSied tax return form for small businesses as they could not afford to hire the services of tax consultants. He said government should categorize taxpayers and offer them incentives in commensurate with their paid taxes. He said instead of creating harassment in existing taxpayers, government should focus on
bringing new people in tax net. Speaking at the occasion, the business community highlighted various tax related issues. They said that a startup business, despite Siling tax return was treated as nonSiler during the Sirst year as he was recognized as Siler after 18 months, which was unjustiSied and FBR should address this anomaly. They said that FBR has made retailers and other businessmen as withholding agents due to which they were facing great problems as instead of focusing on business promotion, they have to spend lot of time on collecting withholding tax. They urged that
FBR should abolish this system and collect withholding tax through its own ofSicials to provide relief to the business community. They urged that FBR should separate tax collection, policymaking and enforcement functions to streamline the tax system. They said FBR should thoroughly review its current tax regime in consultation with stakeholders to bring reforms in it. They said instead of issuing repeated audit notices to taxpayers, FBR should exempt regular taxpayers from audit process. They demanded that FBR should reduce sales tax to single digit level and bring down other
kccI denounces RD on 570 items, urges review KARACHI
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resident Karachi Chamber of Commerce & Industry (KCCI) Junaid Esmail Makda, while denouncing the imposition of Regulatory Duty on 570 items, stated that this step would terribly hit the common man due to exorbitant upsurge in prices of many imported items being widely used in every household of the country and would also affect the local production as the RD list carries numerous raw materials and industrial inputs as well. In a statement issued, President KCCI pointed out that this step was likely to have an adverse impact on the overall industrial performance and the economy as it will clearly trigger the inSlation and raise the cost of many products being produced lo-
cally which will have to be borne by the middle and lower segments of society. Junaid Makda elaborated that Regulatory Duty in between 5 to 90 percent has been imposed on a wide range of products including essential items used by average consumer or by domestic industry as raw material for producing various consumer products, FMCG and exportable items, which means that this move will not only escalate prices of many products being manufactured within the country and supplied to the local markets but will also make Pakistan’s exports uncompetitive due to additional costs. He said that many of these products were either not being produced in Pakistan at all or being produced in limited quantities, leaving no other choice but to go for importing them in order to overcome the huge demand. He said that many of these es-
sential items in the RD list simply cannot be labelled as luxury products and it was a matter of grave concern that the same old practice of Sinalizing RD list without consulting the stakeholders and without considering the ground realities was being followed. The whole process of imposing RD is tantamount to just Sire-Sighting and lacks any long term vision to overcome the mounting trade deSicit and external debt, he added. Junaid Makda reiterated that this step would intensify the hardships for common man and the industry only whereas the difSicult but favorable decisions to implement tax reforms, remove exemptions and concessions along with effective strategies to stop misuse of Afghan Transit Trade were being avoided by the decision makers which was the basic reasons why the economy continues to stay in hot water.
taxes including taxes on services that would promote tax culture. They said that FBR should ensure timely clearance of sales tax refunds to facilitate the taxpayers. Adil Amin, Secretary, ICMAP Islamabad Branch Council said that his institute in cooperation with ICCI will hold more consultative sessions with traders and industrialists of the region so that on the basis of their input and feedback, through budget and other proposals could be presented to the government for resolution of taxpayers issues and for enhancing the tax net.
‘LccI inks mou with IB&m, uAE for promotion of trade’ he Lahore Chamber of Commerce & Industry has inked a Memorandum of Understanding (MOU) with Institute of Business & Management (IB&M), UET to make joint efforts for the cause of trade, industry and academia. The LCCI Senior Vice President Khawaja Shahzad Nasir and Dean/Director of IB&M, UET Dr. Ghulam Abbas Anjum signed the MOU on behalf of their respective organizations. The LCCI Vice President Fahim ur Rehman Sehgal and Executive Committee Members were also present on the occasion. This agreement is continuity of the LCCI endeavors aimed at filling the communication gap between the industry and academia.
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Faisalabad ASO seizes Indian origin red chillies worth Rs10m FAISALABAD: Customs Anti-Smuggling Organization (ASO) confiscated Indian origin smuggled red chillies worth Rs10 millions involving duty and taxes to the tune of Rs 4 million during an action near Rehmania Road. Sources told Customs Today, that Collector Dr. Asif Mahmood Jah received credible report that huge quantity of non-duty paid being smuggled into Faisalabad. He constituted an anti-smuggling squad comprising Inspectors Khalid Ashraf Noor, Farhan Frank, Irfan Mumtaz, Sepoy Muhammad Ashraf and others.
Friday, October 19, 2018
CUSTOMS BULLETIN
Quetta customs foils attempt to smuggle hashish & chemicals worth Rs5.58m PESHAWAR nADIR khAn
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ollectorate of Customs AntiSmuggling Organization (ASO) seized non customs paid vehicle and narcotics worth Rs600 million. As per the statistics, signiSicant revenue generated during last one and a half month by seizing cloths, narcotics and non-customs paid vehicles. ASO impounded vehicle U/S 157 worth Rs57350000, vehicle U/S 16 worth Rs25600000, cloth of foreign origin 5407 yards worth Rs37729725, poppy seed of huge quantity, currency of Rs 47853000, arms of unknown quantity, food grains 2016 kilograms, tea 9023 kilogram, tyre tube worth Rs4262750, auto parts worth Rs1925500, mobile oil Rs255750, Grees 2710 liters, cold silver of 7114 kilograms and fake cigarettes 20402 dandas. Moreover the ASO also seized electrical goods 8528 items worth Rs4227000, antiques 9706 items, carpets 5701 items, pirated CD 60000 items, blankets, toys 9503 items, medicine 9503 types, dinner set worth Rs135000, gutka all brands worth Rs150000, toiletries worth Rs379800, cooking oil, gen-
erators, mobile phones, stitched cloths, automobiles worth millions. Under head of narcotics, the ASO
generated handsome revenue of Rs270000 by seizing chars 1302 kilograms, opium 1302 kilograms,
heroin 1302 kilograms, hashish and poppy seeds worth thousands of rupees. The total collection made by
ASO in all sectors was estimated at Rs218002330 while number of persons convicted was eight.
Anf seizes over 37kg drugs, arrests 24 suspects HYDERABAD
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ollectorate of Customs Anti-Smuggling Organization (ASO) foiled a bid to smuggle 131 sacks of different items including auto spare parts, vehicle rims, betel nuts worth Rs1.5 million during an action. These goods were being transported from Karachi to
Lahore on Wednesday. Deputy Collector Syed Kareem Adil while talking to Customs Today said that the department was striving hard to increase the surveillance of suspects in the region as more check posts have been established to foil the smuggling bids. He told that following the instructions of Collector Khalid Hussain Jamali, the ASO team under his supervision conducted various operations in the region to curb smuggling. During checking, the team intercepted a truck bearing regis-
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tration no: LES 680 and recovered 15 bags of auto spare parts, rims and foreign origin betel nuts. The ASO team confiscated goods after the suspect failed to produce documents regarding legal import. A case has been registered against the accused under Section 2(s) & 16 of the Customs Act 1969. team comprising In-charge Zulfiqar Ali Jamali, Inspector Engineer Hares Kumar, Inspector Maqbool Ahmed Rind, Sepoys, driver and other participated in the operation.