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PAKISTAN’S FIRST INDEPTH NEWSPAPER ON CUSTOMS
26 ABC Certified Vol 75 Issue No. 19
Weekly Weekly
Karachi, Tue Jan 01 - Mon Jan 07, 2018
ATTENDING FATF
PESHAWAR
CUSTOMS TODAY REPORT www.customstoday.com
Member Customs Jawwad Awais Agha will represent FBR in a meeting of Financial Action Task Force. | SEE PAGE 02 | REVISING VALUES
DG Customs Valuation revised values of mini cargo trucks/pickup through VR No: 1348/2018. | SEE PAGE 03 | SEEKING REPORT
Chief Collector Zeba Hai directed Multan Customs to submit report about scanners at Multan Dry Port. | SEE PAGE 04 | SEIZING BETEL NUTS
MultanCustomsseized hugequantityofbetelnuts, gutkaanddryfruitworth Rs6millionintheiraction. | SEE PAGE 02 |
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irectorate of Customs Intelligence and Investigation (I&I) led by Dr. Arsalan Subuctageen showed extraordinary performance in the month of December 2018, thwarted several attempts of smuggling in the region and earned much-needed revenue for the national exchequer. In a most recent operation, acting upon credible information received by Director Customs I&I Dr. Arsalan Subuctageen, the I&I team seized huge quantity of foreign origin cloth along with Mazda truck worth Rs20 million. Smugglers through a Mazda truck bearing registration no: LES-16-4234 tried to smuggle foreign origin cloth to Punjab. The anti-smuggling squad under the supervision of Additional Collector Wajid Ali consisted of Superintendent Mir Khattak, Hawaldar Zafar Ali and Sepoy Abdul Rasheed. The I&I team along with Chamkani police intercepted the Mazda truck near Chamkani police station. The driver of the truck successfully escaped from the scene. The I&I team brought the same to the premises of the Directorate I&I, started thoroughly checking and found 848000 yards of smuggled foreign origin fabric. The Customs team registered a case against unknown offenders of foreign origin goods and vehicle under Customs Act of 1969 section 168 and 157 under Section 171 of Customs Act. In another operation, the Directorate of Customs I&I team foiled an attempt to smuggle di-ammunium phosphate (DAP) fertilizer to Afghanistan. Director Dr. Arsalan Subuctageen received credible information
about smuggling of DAP fertilizer to Afghanistan under the garb of wheat Qlour. The anti-smuggling squad set up a secret check-post near Badaber Kohat Road and started checking of vehicles. The customs team intercepted a trailer which was apparently loaded with wheat Qlour bags marked “for export only”. On the spot checking conQirmed the presence of DAP. The trailer was, therefore, brought to the ofQice of Directorate of I&I for thorough examination which resulted in the recovery of 1013 bags of DAP each of 50kg, total 50650Kgs and 365 bags of wheat Qlour each of 47.500Kg, total 17337.5Kgs. The customs team seized the fertilizer and trailer (goods worth Rs5.7m and trailer Rs13m). Customs team arrested the driver who was identiQied as Saleem, son of Barat Gul, and registered FIR No. 67/2018. Export of DAP fertilizer is banned vide the Export Policy Order. Meanwhile, Directorate of Customs Intelligence and Investigation foiled a bid to smuggle a huge quantity of foreign origin black tea along with eight numbers of offending vehicles worth Rs10 million. In another action, Customs I&I team at Bacha Khan Airport foiled an attempt of money laundering and arrested an FIA Inspector who was trying to board a Qlight carrying along British currency worth 200,000 pounds. Customs sources told Customs Today that ofQicials of Customs Intelligence arrested the accused and his accomplice who was facilitated by FIA ofQicial at Peshawar Airport. The arrest is made under a massive swoop launched on the directions of Prime Minister Imran Khan who wanted Pakistan to strictly comply with the standards identiQied by the Financial Action Task Force (FATF).
Regd. No, MC-1381
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NATIONAL
JANUARy 01 - JANUARy 07, 2018
SHC seeks comments on petition filed by M/s Wali Master
KARACHI: The Sindh High Court (SHC) directed customs officials and deputy attorney general to file their comments on a petition filed by M/s Wali Master seeking release order for imported consignments of wallpapers tiles detained by customs officials due to disputed valuation. A two-member bench, headed by Justice Aqeel Ahmed Abbasi, heard the matter. During the hearing, counsel for the petitioner stated in its petition that he imported a consignment of deluxe composition tiles.
ISLAMABAD
SHAHID MINHAS
www.customstoday.com ederal Board of Revenue’s (FBR) Directorate General Intelligence and Investigation-Inland Revenue (IR) has arrested Shiekh Owais Ashraf, owner of M/s Panwar Rama Electric, allegedly involved in sales tax evasion. Official sources told Customs Today that Shiekh Owais Ashraf and his partner Iqbal Ashraf were involved in sales tax evasion while the accused also used the code number of income tax commissioner Rawalpindi and defrauded the income tax department. Sources said that team of Directorate General Intelligence and Investigation Inland Revenue raided Shiekh Owais Ashraf’s shop situated on Iqbal Road, Rawalpindi and arrested him, while his partner Iqbal Ashraf is still at large. The raided team also took the record of this shop into custody. It is important to mention here that Directorate General Intelligence and Investigation IR also produced the arrested accused before the District and Sessions Judge Rawalpindi and got his physical remand of seven days. Sources added that Directorate General Intelligence and Investigation also raided six others garment shops involved in sales tax evasion on Iqbal Road and took the record into custody.
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Faisalabad ASO seizes toothbrushes during crackdown FAISALABAD
NAEEM SHEIKH
www.customstoday.com he Anti-Smuggling Organization (ASO) seized foreign origin toothbrushes containing 47440 pieces made in China worth Rs4.5 million. Sources told Customs Today that the toothbrushes were being transported into Faisalabad through Lahore. A raiding party was constituted which held a‘naka’at Lahore Road Gutwala Toll Plaza. During checking a consignment was intercepted that contained goods under a table. ASO official asked the accused Ahtesham Raza to produce legal documentary evidence of the said items but the accused failed to produce any documents relating to its legal import. All the toothbrushes were seized under the relevant provision of the Import and Export (Control) Act 1950 Section 156 (1) 89(i) of the Customs Act 1969. ASO detecting staff consisted of Superintendent Tanveer Raza Naqvi, Inspector Khalid Ashraf Noor, Faran Frank and Sepoy Afzal Hussain. The seizure report along with enclosure was sent to the customs adjudication department for further legal action.
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Member Customs Jawwad Awais Agha to participate in FATF meeting in Jan ISLAMABAD
MUHAMMAD FAIZAN www.customstoday.com
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inancial Action Task Force (FATF), during its meeting which will be held in the second week of January 2019 with Pakistani authorities, will review the implementation on Pakistan’s 27 points action plan to strengthen the anti-money laundering and counter-Qinance terrorism regime. Sources told Customs Today that Financial Action Task Force Asia – PaciQic Joint Group’s meeting is scheduled on 8 to 10 January 2019. Member Customs will represent the Federal Board of Revenue in the meeting. Sources said that Government of Pakistan is implementing the action plan consisting of 27 points to strengthen its anti-money laundering and counter Qinance terrorism regime. The outcomes related to various actions are to be achieved by January, May and September 2019. The report of actions taken by the Government of Pakistan up to December 2018 will be shared with Asia PaciQic Group Financial Action Task Force, after approval of the National Executive Committee. The delegation for participation is likely to comprise the 12 members including secretary Qinance, additional Qinance secretary (IF), M/o Finance, director-general, Financial Monitoring Unit, Legal Adviser, Financial Monitoring Unit, one representative from Ministry of Interior, one representative from Ministry of Foreign Affairs, one representative from NACTA, one representative from Federal Investigation Agency,
— Exclusive Customs Today photo
FBR I&I nabs owner of M/s Panwar Rama Electric involved in tax evasion
one representative from Federal Board Revenue (Customs), one representative from Security Exchange Commission of Pakistan (SECP) and two representative from State Bank of Pakistan (SBP). Meanwhile, Collectorate of Customs Deputy Collector Wajid Zaman deputed two customs inspectors and one lower division clerk to the new mobile phones registration counter established at Customs Headquarters for those living abroad.
Member Customs Jawwad Awais Agha
According to a notiQication, three customs staffers naming Inspector Muhammad Hafeez who were performing their duties at Federal Tax Ombudsman branch has been transferred to mobile phones registration counter (MPRC) with immediate effect. The notiQication further said that the other Inspector Ejaz Sheikh transferred from customs branch to MPRC, while lower division clerk Anees ur Rehman transferred from Customs branch to MPRC.
Multan Customs seizes betel nuts, gutka & dry fruits worth Rs6m C
MULTAN
IMRAN ALI KHAN
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ustoms Anti-Smuggling Organization seized the huge quantity of betel nuts, gutka and dry fruit worth Rs6 million in their action. Sources told Customs Today that Collector Ambreen Ahmad Tarar received credible information from her source that huge quantity of smuggled goods will be transported through Muzaffargarh-Multan route. She immediately constituted a special team comprising Inspector Muhammad Asghar, Inspector Rana Mujtaba, Inspector Maqsood, Inspector Tahir Iqbal and others to frustrate any attempt of smuggling. Customs Anti-Smuggling squad started patrolling and vigilance of the suspected routes. Customs Anti-
Collector Ambreen Ahmad Tarar
Smuggling Organization intercepted two suspected trucks bearing registration number of TKA-644 and
TKK-980 near Nawab Hotel MultanMuzaffargarh Road which were loaded with betel nuts, gutka and raisin. Customs teams during the checking recovered 228 sacks of different brands of gutka, 31 sacks of betel nuts and 2486 cartons of raisin. It was also revealed in the initial interrogation that smugglers were trying to supply these smuggled goods to different retailers of South Punjab, especially in Multan region. But Customs teams foiled their attempt of smuggling due to timely action against them. Customs teams arrested four accused after recovery of smuggled goods and started legal action them after framing seizure report against the recovered goods under Customs act 1969. Further investigations are still underway till the filing of this report.
The notice has been displayed on MCC notice board while phone numbers of the transferred staff are also mentioned in the notiQication for facilitation of the passengers who want to get their mobile phones registered. The registration of phones process has been started for Pakistani passengers while around 1200 to 1800 passengers have registered there phones voluntarily at MCC as well as at New-Islamabad International Airport.
Tax evasion: FBR to audit 133 multinational companies he Federal Board of Revenue (FBR) has decided to audit already identified 133 multinational companies working in Pakistan over alleged tax evasions. Sources said that the FBR will audit these firms for the purpose of scrutinising their accounts to find out potential tax evasion of worth billions of rupees under donors funded projects. Regional Taxpayer Office (RTO) Islamabad received detailed investigation report about one international contracting firm with the directive for immediate enforcement of complete annual statements for last five years and selection of company’s case for audit purposes. After finding out massive tax evasion in international contracting firms through execution of multimillion dollar donor funded projects, the FBR has now gathered information about 133 such international firms. —CTReport
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NATIONAL 03
JANUARy 01 - JANUARy 07, 2018
Customs Court accepts challan in HSD smuggling case
KARACHI: The Customs Court accepted interim charge sheet against suspect namely Khuda Buksh son of Dur Muhammad resident of Khuzdar, Baluchistan, who was booked in a case of attempting to smuggle non-duty paid 10,000 liters High Speed Diesel (HSD). Investigation officer of Customs Preventive submitted interim charge sheet and informed the court that on a actionable information, a team of Customs Preventive intercepted a Hino water tanker bearing registration number TTC-653 (Quetta) which was moving in the vicinity of Hamdard University.
FBR gets feedback from 220 of 3,121 notices sent to non-filers
DG Valuation revises customs values of mini cargo truck
ISLAMABAD
CUSTOMS TODAY REPORT www.customstoday.com
KARACHI
WAQAR AHMED ANSARI www.customstoday.com
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T
he Directorate General of Customs Valuation has revised the customs values of mini cargo trucks / pickup through Valuation Ruling No: 1348/2018 under Section 25-A of the Customs Act-1969. Earlier, the Customs values of mini cargo trucks / pickup, were determined vide Valuation Ruling No. 637/2014, dated 06-02-2013, read with amendment vide dated 11-06-2018. Recently, a number of references of provisional assessments of subject items under Section 81 of the Customs Act, 1969, have been received from different Collectorates. Therefore, this ofQice initiated exercise for determination of Customs values of the subject goods. Meetings with stakeholders were held on 28-12-2017, 18-01-2018, 29-05-2018, 16-07-2018, 1 8-072018, 23-07-2018 and 27-07-2018 followed by detailed meetings with Qield formations. The stakeholders were requested to furnish invoices of imports during last three months showing factual value. Websites, names and e-mail addresses of known foreign manufacturers of the item in question through which the actual current value can be ascertained. C. Copies of Contracts made / LCs opened during the last three months showing the value of item in question. Copies of sales tax Invoices issued during last four months showing the difference in price (excluding duty and taxes) to
— Exclusive Customs Today photo
he Federal Board of Revenue (FBR) has received feedback from only 220 out of 3,121 notices sent non-filers of tax returns. The FBR had identified 3,100 high net-worth individuals who were non-filers of tax returns and issued notices to them in four batches. In the first batch, FBR issued notices to 148 rich people who were non-filers, followed by another 75 notices, 220 notices, respectively. In the last batch 2, 678 people were served with notices asking them to file returns. The FBR has also identified 30,000 non-filers of tax returns, though notices have not yet gone out to them. These highnet worth individuals who are non-filers can be identified in the system and are seen purchasing immovable property worth Rs20m and above, as well as vehicles of 1800cc engine size and above, or earning rental income of Rs10m and above. On top of this, the tax authorities have sought and received information on 152,518 Pakistani nationals with undeclared assets abroad. The information has been received from 28 countries under the OECD tax convention. According to the tax official, notices are being served to initiate process for recovery of evaded taxes, if any, and also determine whether the assets in question have been acquired from legally generated incomes. The data received was matched with domestic data and identified the tax evaders, the official said. On bilateral level, according to the data, Pakistan has also obtained information about 4,023 properties held by Pakistanis in United Arab Emirates. The mapping of the data shows that of the total identified properties only 987 properties were of Pakistani residents.
substantiate their contentions. The meetings were attended by different stakeholders including representatives of Customs Appraisement-East/West/Port Muhammad Bin Qasim and various importers. The importers contended that values of their items are being enhanced during the process of assessment but no cogent justiQication is given. The importers added that their declared prices were true and correct which could be veriQied
DG Valuation Surriya Butt from concerned commercial counselors. They were required to submit all evidences/record in support of their claim. The view point of the stakeholders was heard in detail and considered for reaching at customs values. Meanwhile, The Directorate General of Customs Valuation has revised the customs values of room air fresheners and car air fresheners through Valuation Ruling No: 1349/2018 under Section 25A of the Customs Act-1969.
Earlier the customs values of room air fresheners and car air fresheners were determined vide Valuation Ruling No. 611/2013 dated 22-11-2013. There were several representations from importers, wherein they contended that customs values determined in the existing Valuation Ruling are not reQlective of prices in international markets, therefore required to be revised in line with the prevailing prices in the international market.
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04 NATIONAL
JANUARy 01 - JANUARy 07, 2018
Customs seizes depot of smuggled diesel
KARACHI: Collectorate of Customs Preventive Anti-Smuggling Organization (ASO) has apprehended huge quantity of smuggled Iranian diesel. On a tipoff of higher authorities, Deputy Collector Customs Preventive Headquarters Muhammad Faisal Khan conducted raid at Nazimabad adjoining SITE area near Habib Bank Chowrangi and recovered huge quantity of smuggled Iranian diesel. During the raid, the team of ASO spotted an illegal depot containing smuggled diesel. The team seized the smuggled diesel weighing 70,486 liters worth Rs1,661,170.
ChiefCollectorZebaHai seeksreportaboutscanners fromMultanCustoms
Court sends suspect to lock-up in betel nuts smuggling case KARACHI
M.B RANA
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MULTAN
IMRAN ALI KHAN
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MULTAN
CUSTOMS TODAY REPORT www.customstoday.com
ollectorate of Customs Adjudication Multan Camp Office Additional Collector Talib Hussain has issued Order-in-Original to confiscate smuggled Toyota Fielder car. According to details, Additional Collector Customs Adjudication issued Order-in-Original (ONO) no. 461/2018 while hearing a case against the owner of non-duty paid Noor Muhammad Ahmed son of Saim Buksh, a resident of Khairpur. Customs Intelligence and Investigation framed seizure case against Noor Muhammad after seizing vehicle from Sadiqabad. Sadiqabad Intelligence Unit of Customs intercepted a Toyota Fielder car bearing registration no: AVW-642/Sindh, model 2002. The driver of the vehicle introduced himself as Noor Muhammad Munir son of Saim Buksh during the action of Customs Intelligence team. Customs Intelligence Unit of Sadiqabad asked him to produce documents relating to this vehicle but he could not produce any evidence in this regard. Therefore the foreign origin Toyota car was detained under Section 2kk and 17 of the Customs Act 1969 read with section 3(1) of the Import and Export Act 1950 punishable under Section 156(1) 89 of the Customs Act 1969. Customs Adjudication issued a show cause notice to the accused for submitting the response in the said seizure by asking him that why the seized vehicle should not be confiscated under aforementioned provisions of law. Inspector Muhammad Umar appeared from the prosecution side and asserted that seized car falls in the ambit of Section 2(s) of the Customs Act 1969 while owner also appeared in the adjudication department and stated that seized vehicle was purchased by the respondents from a car dealer.
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Chief Collector Central Region Zeba Hai Azhar
effective vigilance of inward and outward movement of shipments at
all ports including Multan Dry Port to ensure foolproof security.
Quetta Customs seizes Indian origin goods worth Rs20 million near Lakpas Check Post C
QUETTA
TARIQ DERYA
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ollectorate of Customs antismuggling squad seized Indian origin smuggled goods worth Rs20 million. The ASO team when intercepted Karachi bound vehicle, gunmen escorting the coach in two cars started Qiring on anti-smuggling squad but brave anti-smuggling squad targetted the tyres and impounded the vehicle. Sources told Customs Today that Deputy Collector Preventive Maqbool Baloch received credible information about smuggling of
— Exclusive Customs Today photo
Customs Adjudication declares seizure of non-duty paid vehicle legal
— Exclusive Customs Today photo
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hief Collector Central Region Zeba Hai Azhar directed the Collectorate of Customs to submit a report about the availability of scanners for examination at the Multan Dry Port. According to details, the chief collector office will assess the actual situation after receiving the report from Multan Customs as it is one of the important Collectorates of the Central Region and they are compiling a report about operational scanners at the Multan Dry Port. Scanners at the Multan Dry Port are facilitating Customs Collectorate to conduct the examination of import and export shipments. Multan Customs has also been asked about their clearing capacity per month and scanning of total number of import and export shipments every month. Scanners condition has also been inquired so old scanners could be replaced with new ones to facilitate importers and exporters. The Chief Collector office of Central Region asked Multan Customs to give a complete report about installed scanners for the examination of inward and outward shipments at Multan Dry Port. Multan Customs has also been asked to inform about installed scanners if they are sufQicient for the clearing process of shipments or the Collectorate needs few more scanners. The Federal Board of Revenue has been striving hard for
he Customs Court sent suspect Asmat Ullah, son of Khan Muhammad, to customs preventive on physical remand, who was involved in a case of attempting to smuggle 9,205kilogram betel nuts under the cover load of gravel (crushed stones) etc. Investigation officer of Customs Preventive produced the above-mentioned suspect before the court and informed that on information, customs officials intercepted a Hino truck bearing registration no: TKE-349 arriving from Quetta to Karachi via Sindh through Super Highway, Karachi. He further submitted that during the search, customs officials recovered 9,205-kilogram betel nuts under the cover load of gravel worth Rs2,558,990, 2300 packets of Safina brand Indian gutka, 1200 packets of One-2-One Brand gutka, 600 packets of Z-21 gutka made in India worth Rs6,682,000 and he was asked to produce any documents; however, he failed to produce any lawful documents; therefore, goods were taken into custody and he was also arrested by customs officials. He stated that prosecution needs further investigations from him for arrested of absconding suspects and owner of said goods; therefore, the court may send him back to customs department. After hearing, the court sent him on physical remand and directed investigation officer to produce him on next date of hearing along with progress report. Case was registered for violation of under Section 2 (s) 156(2) and 178 of Customs Act, 1969 punishable under Clause 89 of Section 156(1) ibid read with Section 3(1) of Imports & Export Control Act, 1950.
non-duty paid goods to Karachi. He immediately constituted anti-smuggling squad under the supervision of Superintendent Aslam Solungi which enhanced
checking on all exit and entry points of the city. The ASO team intercepted a coach near Lakpas but suddenly they started Qiring on anti-smuggling quad. The brave
squad retaliated and targeted the tyres of coach with Qires and busted them and managed to bring the coach inside the boundary wall of the check post amid huge resistance by smugglers. A vehicle of ASO squad also received bullets but fortunately, the staff remained safe. After checking the coach, the staff found 250 bags of Indian origin gutka and 350 kilograms smuggled fabric which was tactfully hidden in cavities of the said coach. One person has also been arrested by Customs Staff Quetta. Value of seized goods is about Rs20 million.
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— Exclusive Customs Today photo
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SPECIALREPORT 07
JANUARy 01 - JANUARy 07, 2018
KARACHI
ASAD KHARAL
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he National Accountability Bureau (NAB) has received an application against M/s Maersk Pakistan (Pvt) Ltd and also against PaciQic International Lines (PIL) and its agents in Pakistan, M/s PaciQic Delta Shipping (Pvt) Ltd in a mega scam of demurrage and detention worth billions. The complaint received by the NAB demanded legal action for recoveries of amounts looted and recovering losses of Rs. 610 billion to the national exchequer per year while also stopping such further losses from the accused persons of these companies including Søren Skou, Claus V. Hemmingsen, Søren Toft, Vincent Clercp, Morten H. Engelstoft, others of Maersk Line; Arslan Khan, Gazanfar Khan, Raheel Salim, Maqsood Ul Hasan Khan, Fuad Khan, Hasan Faraz, Shakeel Masih, Omer Khan, Ali Jawad Alvi, Zafar Iqbal, Ayesha Chowdhry, Zahid Hussain, Salman Ahmad, Aamir Ali, Umais Aziz Khan, Mohammed Naeem, Farheen Mahmud, Mubasshar Iqbal, Affaq Syed, Syed Mohammad Abbas Jafri, Muhammad Tanveer Sharif, Salman Ateeq, Hamza Haq, Ziad Mahboob, Aamir Ibrahim, Yasir Saeed Khan, Amal Sadiq Dawood, Effat Mehmood, Maria Urooj, Zain Warsi, Mehreen ZulQiqar, Awais Saleem, Zafar Iqbal, Syed Osman Iqbal Zaidi, Anum Yaqub, Fahad Ali, Obaid Iqbal, Zahid Hussain, Muhammad Ali Qureshi, Danish Siddiqui, Amir Arif, Arshad Ayub, Syed Mudassir Ali, Syed Hammad Hussain, Ayesha Qadri, Sheikh Samiullah, others of M/S Maersk Pakistan Private
Limited; S.S.Teo, Peter Chang, Tan Chor Kee, William Tay, Teo Tend Seng, Tony Teo, Choo Wee Teo, Kuan Kim Kin, others of PIL Ltd; and Bakhtiar Khan, Naveed Ahmad Khan, Tay Kian Phuan William, Teo Chew Seng, Teo Siong Seng, Qamar Naqi, Baig Mirza Mueez, Khan Imran and others of M/S PaciQic Delta Shipping (Pvt) Ltd. As per the complaint received by the NAB, the nexus of some Customs staff, Port Qasim and shipping lines like Maersk Line along with its agent Maersk Pakistan Private Limited, including its owners, managers & staff and also staff of PIL Ltd and its agent M/S PaciQic Delta Shipping (Pvt) Ltd are making illegal money through malpractice. “Firstly, customs department delays goods of majority of containers that arrive in red channel. 80% of the goods cleared in red channel take a duration which is more than the free days provided by the port terminals. Hence, the port terminals take huge amounts from the importers on each consignment thus delayed. These shipping lines also force the importers to pay huge illegal sums. All these three: the customs staff, port terminals, shipping lines as mentioned above delay the clearance and delivery of the goods to the importer. Due to this delay, the revenue collection of duty and taxes is slowed down drastically of the actual speed. Like where these goods were to be cleared and delivered in 2 days then it takes an average of 20 days to clear and deliver,” the complaint said. The complaint received by the NAB said, “The total revenue collection by customs department is Rs. 610 billion. If the process of revenue collection is not slowed down by the above-mentioned
parties then at least the revenue collections could be doubled. Hence, total loss to national exchequer due to above nexus and illegal acts of the subject accused is Rs. 610 billion”. “The terminal ports and shipping lines are not allowed to collect any demurrage and detention amounts from the importer when the importer provides ‘delay and detention certiQicate’ under section 14 A of the Customs Act, 1969. Despite this, the port terminals and shipping lines blackmail and harass the importer to collect hundreds of thousands of rupees per single consignment. Since this is illegal money demanded from the citizens of Pakistan and hence it can be termed as an ‘extortion’ amount,” the complaint said. The complaint said, furthermore, under rules 603 (Q), 603 (R), 604 (Q) and 607 (E), others of SRO 1220 (I)/2015, the shipping lines cannot charge any demurrage or
Under rules 603 (Q), 603 (R), 604 (Q) and 607 (E), others of SRO 1220 (I)/2015, the shipping lines cannot charge any demurrage or detention charges where it is not specifically written on the B/L
detention charges where it is not speciQically written on the B/L. But still in violation of these rules and laws, the shipping lines fearlessly hold the containers of the importers and charge them exorbitant detention charges. These detention charges even exceed the actual cost of container by a whopping 1,000%! “The shipping lines charges only 30% of its cost from the importer to allure importer to give his containers to them. All remaining 70% of cost and huge proQits are made through illegal means and black money. Like China-Pak cost of shipment for a 40HQ container is charged USD 300 whereas the actual cost to the shipping company is USD 1,000. Pak-China freight is almost USD 0 to USD 10 which is even more surprising. When white income of these shipping lines is only 30% of their cost then it is obvious that they are indulging in many illegal and black activities to cover cost and also make huge proQits,” the complaint said. “When complaints are made to Customs department then they do not take action against the accused which is mandatory under sections 156 (1) 7A of the Customs Act, 1969 and also rules 603 (Q), 603 (R), 604 (Q) and 607 (E), others of SRO 1220 (I)/2015. The nexus of some Customs ofQicials, Maersk Line and PIL Ltd has made these active provisions of law entirely redundant and they should be severely punished for the same,” the complaint said. The complaint demanded from the NAB to take legal action against the subject accused persons, recover amounts looted by them, recover losses suffered by national exchequer to the tune of Rs. 610 billion per year and stop further losses.
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08 EDITORIAL
JANUARy 01 - JANUARy 07, 2018
Founder & Chairman Zulfiqar Ali CEO and Chief Editor Asad Kharal Editor Rahil Yasin editor@customstoday.com.pk For advertising & subscription marketing@customstoday.com.pk www.customstoday.com Phones: 042-35781643-4, Fax: 042-35781645 Address: 627, Siddiq Trade Centre, Gulberg, Lahore
EDITORIAL
Gas Crisis
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akistan is the largest consumer of natural gas in South Asia. Its gas reserves are depleting fast because of the notoriously inefficient pipeline system subject to theft in third world conditions. Nearly 40 per cent of gas being consumed in households and at gas pumps is subject to this loss, which puts further pressure on gas prices for consumers. There is a countrywide crisis going on and the people appointed to find out who is responsible for the problem are not performing their duty right. This not only delays the process of accountability but also allows the space for people to be affected for a longer duration. The committees that the government relies on for such work need to have a performance review to analyse how beneficial their input is because they get paid from the taxpayer’s money and in that case, there is no space for a sluggish attitude. This is usually the problem in the bureaucratic setup of Pakistan which guarantees job security. If performance reviews are not conducted and jobs are guaranteed regardless of tangible work being done, the output is always stagnation. Our bureaucracy is also plagued by this problem and a cleansing of the setup is required. Job security and promotions should only depend on how well a person can perform their duties and the adaptation to the technological advancements and their use in solving the problems affecting the country. The gas crisis affects the common man along with the industrial set up. This has become a cause of concern that in the summers the masses face an acute shortage of electricity and in the winters, there is a shortage of gas supply. And the problem is not restricted to that. The distribution of gas itself is also a very controversial topic because most of the gas being produced is being consumed by the province of Punjab. It is high time that there is an equal distribution of resources. We already saw that in the case of Balochistan, the coalition party is aggrieved over the lack of developmental projects being undertaken in the province as a result of the China Pakistan Economic Corridor (CPEC). The shortage of basic necessities and their unequal distribution is a matter which needs to be addressed and if the investigative teams are not performing their duties right, the masses are bound to get agitated.
Reviving Tourism Industry T
LAHORE
CUSTOMS TODAY REPORT www.customstoday.com
he tourism and hospitable sector is one of the largest important sources of revenue generation in today’s world as people want to visit new places and new destinations to explore new cultures for recreation and satisfaction of their aesthetics The government of Pakistan Tehreek-e-Insaf (PTI) correctly thinks that it is about time to review its visa policy for foreigners for promoting the tourism industry of Pakistan. Foreigner travellers complain about the strict visa policy that Pakistan has adopted post 9/11. Though the exact steps the government is taking in regards to visa relaxation are yet to be known, the government’s consid-
eration is a welcome step. Like all other sectors of the country’s economy, tourism could not remain immune to the negative impacts of terrorism. Many states, till recently, advised their citizens to avoid travelling to Pakistan. However, with the successful military operations against militancy, normalcy has been achieved. Also, some foreigners wayfaring across Pakistan and making video blogs support the notion that the country is safe for tourism purposes. Portugal has already declared Pakistan safe for travelling. France, too, has softened its stance on travel to Pakistan along with Great Britain. The government realises that investing in the sector can create a positive impact on the country’s economy. In numerous states, tourism turns as a device for improvement through the
The government’s visa-free policy for foreigner tourists will attract the tourists to the scenic beauty that Pakistan holds in its mountains, plains, and deserts
earnings of foreign exchange and the formation of indirect and direct service. Tourism subsidises 5% of the world’s GDP. It reports for 6% of the world’s trades in facilities being the fourth largest export region after chemicals, automotive and fuel products. For tourism in many, emerging, unindustrialised and least developed states is the most possible and bearable economic expansion option, and in certain nations, the key cause of foreign exchange remunerations. The government’s visa-free policy for foreigner tourists will attract the tourists to the scenic beauty that Pakistan holds in its mountains, plains, and deserts. The relaxation of visa policy will, naturally, increase the inQlow of foreigners in the country that can prove helpful in presenting the soft image of Pakistan to the world.
www.customstoday.com
NATIONAL 09
JANUARy 01 - JANUARy 07, 2018
Additional Collector Asma issues notice to owner of NDP generator
FAISALABAD: The Customs Adjudication Additional Collector Asma Hameed issued a show cause notice to owner of a non-duty paid generator which was brought into the country without payment of taxes. As per details, Customs Intelligence and Investigation intercepted a Mazda mini truck bearing registration no: LES-2495 near Saleemi Chowk Satiyana Road and recovered a generator of 38-KVA. Team asked the driver namely Muhammad Asad son of Muhammad Ashraf to produce documents for having legal possession of generator but he could not produce any kind of evidence in this regard.
SHC seeks reply on petition filed by M/s Fazal Illahi & Sons
Strict vigilance adopted against smuggling of intoxicants: ADC Aamir
KARACHI
M.B RANA
www.customstoday.com he Sindh High Court (SHC) issued notices to customs authorities and deputy attorney general directing them to file their respective para wise comments on a constitutional petition filed by M/s Fazal Illahi & Sons and M/s Umer Ahsan & Co for release of their consignments of imported copper tubes lying at port on submission of post-dated cheques. A two-member bench, headed by Justice Aqeel Ahmed Abbasi, heard the matter. During the hearing, counsel for the petitioners stated that the petitioners imported copper tubes from China which arrived on 2/11/2018 aboard vessel Wan Hai, and manifested dated 24/10/2018. He submitted that during the stated period, the Pakistani rupee was under immense pressure as foreign reserves of the country dwindled and Pakistan turned to IMF and China for a potential bailout resulting in devaluation of Rs11.70 a day from Rs124.27 per USD to Rs133.64 per USD. Since the petitioners’imports were denominated in USD as with most of the imports coming into Pakistan, such massive fluctuations in exchange rate impacted the survivability negatively of traders as the petitioners. He argued that petitioners filed goods declaration in which respondents had neither disputed nor disproved any documents submitted by the petitioners or the goods to be found contrary to what is declared, however, petitioners surprise, the respondents issued show cause notice against them, invoking provisions of Section 32 of CA, 1969, despite no sign of proof of false statement made, forged documents submitted.
WRITE TO US YOUR GRIEVANCES: Through CUSTOMS TODAY platform HELP DESK, now you have chance to DIRECTLY write your problems to top govt. functionaries. If you have any grievances, queries, questions or suggestions, you can write in this section as it provides easiest access to you to approach Customs and Revenue authorities. WHO can write in this section? Importers & Exporters, Customs Agents, Chambers of Commerce, Trade Associations and Customs Officers TO WHOM you can write? Honourable PM, Minister/Secretary for Finance & Revenue, Minister/Secretary for Ports and Shipping, FBR Chairman, Member Customs and Chairperson Senate/National Assembly Standing Committee on Finance & Revenue. Send your letters at: newsdesk@customstoday.com.pk
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KARACHI
MUBEEN HUSSAIN www.customstoday.com
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ollectorate of Customs Preventive Additional Collector Aamir Them has said that narcotics act does not have strict punishments for the culprits but customs is playing its role to restrict smuggling, the Collectorate is keeping strict vigilance on import and smuggling of prohib-
ited intoxicants including sheesha narcotics substances, liquor in the wake of New Year celebrations. Addressing a press conference in Customs House, the additional collector said that there are several small smugglers who smuggle contraband items. He told that nowadays cocaine is being smuggled from United States and European countries but narcotics act does not comply strict punishments to the culprits involved in heinous crime. Additional Collector Aamir Them told that on the directive of the
Supreme Court, the ofQicers of the Pakistan Customs have apprehended huge quantity of sheesha tobacco which is very dangerous for the health of the youth. Flavored tobacco (seesha) is being used unabated by young generation and even by the children of tender age without knowing its harmful health effects such as Cancer. Strict vigilance was also ensured in the area to foil further possible attempts of smuggling, informed Additional Collector Customs Preventive Aamir Them. He also informed that recently,
Qlavored tobacco Sheesha 207 packets (1295 kgs), Qlavored charcoals, 12 hoka pipes and other related accessories from the sale outlets operative in Saddar have been seized. It is reiterated that this enforcement drive against sheesha and other prohibited intoxicants will be continued to cleanse our society especially young generation from this menace and this Collectorate is keeping strict vigilance on import and smuggling of prohibited intoxicants including sheesha narcotics substances, liquor in the wake of New Year celebrations.
Govt urged to release pending refunds of textile industry To,
facing the threat of being declared as a defaulter. Your government should release all outstanding payments on account of DLTL and implement textile policy initiatives to promote exports, which are in the doldrums. Exporters are looking towards your government for the release of sufQicient funds to the State Bank for the release of payments to them. The textile industry welcomed the step of providing gas and electricity at a regionally competitive rate and is fully convinced that Prime Minister Imran Khan’s vision to double the exports could be materialized with the provision of other enablers.
Asad Umar, Finance Minister, Islamabad Dear Sir,
We, representing all textile industry, want to urge you to issue directions to the Federal Board of Revenue (FBR) with regard to payment of outstanding sales tax refunds of the industry so that the manufacturers/exporters could manage their liquidity issues. Over Rs100 billion sales tax refunds of the textile industry are lying pending, both on account of current and deferred refunds at various large taxpayer units (LTUs) and regional tax ofQices (RTOs), mainly due to the cross-matching of invoices by the department and
payment of the sales tax on account of the services from 2008 onwards. The FBR should issue directions to all the LTUs and RTOs for expediting
the process of refunds and subsequent payments against the refund payment orders (RPOs) issued in order to save the industry which is
Best Regards,
Syed Ali Ahsan Chairman, APTMA, Lahore
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10 NATIONAL
JANUARy 01 - JANUARy 07, 2018
LHC restricts FBR for issuance of tax notices of previous period
LAHORE: Lahore High Court (LHC) restricted the Federal Board of Revenue (FBR) for issuance of tax notices to taxpayers beyond five years. LHC directed Federal Board of Revenue not to issue tax notices to those taxpayers of previous five years till further order. Justice Muhammad Furrukh Irfan of Lahore High Court (LHC) heard the petition filed by M/s Mughal Steel Limited which was filed against the federal government and Federal Board of Revenue (FBR).
Khawaja Jalaluddin Roomi elected chairman Multan Dry Port Trust MULTAN
IMRAN ALI KHAN
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hawaja Jalaluddin Roomi elected as Chairman Multan Dry Port Trust and Malik Asrar Ahmad Senior Vice Chairman and Sheikh Muhammad Akbar vice Chairman for the year 2019. The announcement of new ofQice-bearers was made during a meeting of the Board of Trustees held under Chairman Khawaja Muhammad Faazil at Multan Dry Port. Newly elected Chairman Khawaja Jalaluddin Roomi addressed the Multan Dry Port Trust Members that he would provide same clearing facilities of Karachi port to importers and exporters at Multan Dry Port which will bring prosperity in the region. Announcing his priorities, he said that he would try his optimum to upgrade the services of Multan Dry Port and boost exports and imports of South Punjab. He said that Multan Dry Port will open new doors for the business community of South Punjab by facilitating exporters and importers. He praised the efforts of former Chairman Khawaja Muhammad Faazil and his team who took special attention for the establishment of Sadiqabad Export Terminal to facilitate exporters of Rahim Yar Khan, Sadiqabad and its adjoining areas. He stated that Sadiqabad export terminal has been fully operational after installation of WeBOC clearing system and exporters will take beneQit from top clearing services of Multan
— Exclusive Customs Today photo
Dry Port Trust. He informed that Multan Dry Port Trust is making efforts to connect Multan Dry Port with Sher Shah Railway station to cut the cost of high freight charges and management of Railway and Divisional Superintendent Rail-
Khawaja Jalaluddin Roomi
way Multan are in close contact for the establishment of Sher Shah bonded cargo station which will clear import shipments from Karachi to Multan. Sher Shah Railway Project will facilitate importers and exporters in nominal freight
charges through their cargo bonded services. Establishment of multi-mode transport hub at Sher Shah will enhance the handling of import and export shipmenta by reducing the clearing cost of shipments and it will facilitate the
importers and exporters at their doorstep. He said that he would resolve all the issues of the exporters and importers by delivering maximum facilities to them and he thanked all members for electing him as Chairman Multan Dry Port Trust.
FBR directs LTU to recover Rs24.626m from tax defaulters T
ISLAMABA
MUHAMMAD FAIZAN www.customstoday.com
he FBR has ordered the Large Taxpayer Unit,t Karachi to recover the total amount Rs24.626 million including default surcharge and penalty. According to a report, a comparison of monthly sales tax returns with the annual audited accounts and income tax returns and inventory record revealed that nine registered persons of the Collectorate of Sales Tax (Audit) and LTU Karachi, declared their total sales in monthly sales tax returns lower than the declared amount in the annual audited accounts and income tax
returns. This concealment of sales resulted in short payment of sales
tax of Rs19.079 million which also attracts penalty of Rs4.369 mil-
lion and default surcharge of Rs1.178 million, raising the
recoverable to Rs24.626 million during the period from 2016 to 2017. The lapse was pointed out to the Collectorate and the FBR during June, 2017 to May, 2018. In the Departmental Accounts Committee meetings held in May/August, 2018, it was reported that six cases were under adjudication while no reply was furnished by the large tax payer unit in three cases. The DAC directed the department to finalize adjudication within the stipulated time and to submit replies to audit within a month. FBR also directed the concerned authorities to hold the accountable those who are responsible for delay in recovery of the amount.
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CARTOONSSPECIAL 11
JANUARy 01 - JANUARy 07, 2018
Focal persons nominated for FBR properties in Karachi
KARACHI: Federal Board of Revenue (FBR) has nominated focal persons for the management of FBR real estate/properties in Karachi. According to the FBR notification, three officers, including Muhammad Amir Tahim, Additional Collector Preventive (PCS), Karachi; Amin Qureshi, Additional Commissioner (HQ) CRTO, Karachi, and Asif Ali Abro, Deputy Director (Intelligence and Investigation-Inland Revenue), Karachi, were nominated as focal persons for coordination with FBR Headquarters.
Customs Court approves physical remand of accused involved in HSD smuggling MULTAN
IMRAN ALI KHAN
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he Special Federal Court of Customs Taxation and Anti-Smuggling granted two days physical remand of two accused involved in smuggling of 40,000 liters HSD case. According to details, accused Muhammad Naseem and Sardar Muhammad were arrested by Rajanpur Police on charges of smuggling High Speed Diesel. Both accused were handed over to Multan Customs Anti-Smuggling Organization after their arrest. Customs Investigation and Prosecution (I&P) branch lodged FIR against both accused who are involved in smuggling of foreign origin High Speed Diesel (HSD) Customs Anti-Smuggling Organization team intercepted alleged Hino oil tanker bearing registration number: TKV-490/ Sindh from Rajanpur area which was loaded with 40,000 liters quantity of foreign origin High Speed Diesel of worth Rs5 million. Customs Investigation and
Prosecution (I&P) lodged FIR against both accused persons for smuggling attempt. Customs Investigation and Prosecution (I&P) team produced both accused before the court
and asked for their physical remand for two days. The customs court handed them over them to the customs investigation and Prosecution branch for further investigation
in smuggling of High Speed Diesel. Both smugglers were trying to smuggle foreign origin High Speed Diesel in South Punjab through Taunsa Rajanpur route to supply in the local markets but
Gwadar Customs foils bid to smuggle NDP tyres & alloy rims worth Rs 8.75 million
Customs teams foil their attempt with the assistance of local Police. Both accused will be presented again before the court after completion of two days physical remand.
Multan I&I recovers non-duty paid cigarettes from private warehouse MULTAN
CUSTOMS TODAY REPORT www.customstoday.com
KARACHI
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WAQAR AHMED ANSARI www.customstoday.com
ollectorate of Customs team seized huge quantity of non-duty paid tyres, alloy rims and other items worth Rs8.75 million including vehicle being used for smuggling. Sources told Customs Today on December 25 that Deputy Collector Junaid Mehmood received secret
information that some smugglers are trying to smuggle non-duty- paid tyres, alloy rims, and other items including pressure horns from Gwadar to Sindh. After receiving this information, he constituted a raiding team under the supervision of Customs Preventive Inspector Khalil Akhter, Saleem Chughtae and others. The team, during a search operation on Shaheed Islam Check Post, intercepted a
vehicle bearing registration no: GXK-0228. During the search, the team impounded more than 150 luxury vehicles tyres, 200 different kinds of alloy rims and 100 pressure hors worth Rs8.75 million including truck being used in smuggling. The team seized all smuggled items and arrested two smugglers. Sources told that customs ofQicial started investigations from the accused persons.
irectorate of Customs Intelligence and Investigation team during a joint operation with Regional Tax Office Inland Revenue team recovered huge quantity of non-duty paid cigarettes from private warehouse. According to details, after receiving secret information from their informer that huge quantity of non-duty paid cigarettes dumped in the private warehouse near Kabirwala region. Pervaiz Ahmad who has dumped different brands of cigarettes was involved in sale of non-duty paid cigarettes. The enforcement cell of Regional Tax Office and Customs I&I team has obtained search warrant from the local magistrate to seek permission for the inspection of warehouse located in the Siraye Sidhu. Chief Commissioner Regional Tax Office Multan Abid Raza Bodla formed special team led by Assistant Commissioner Mazhar Ali with colloboration of Customs I&I. The team raided the warehouse and recovered almost 200 various cartons of foreign origin cigarettes.
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12
JANUARy 01 - JANUARy 07, 2018
FBR seeks missing ACRs of four stenotypists for promotion
MULTAN: The Federal Board of Revenue has sought the missing Annual Confidential Reports (ACRs) of four steno typists (BS-14) from Regional Tax Office for their promotion to the Assistant Private Secretary (BS-16). According to details, Chief Commissioner Regional Tax Office Inland Revenue has been asked that promotion process of stenotypists (Bs-14) of Inland Revenue to the post of Assistant Private Secretary (BS-16) initiated. The Federal Board of Revenue noticed that annual confidential reports of four stenotypists from Regional Tax Office are still missing for specific period.
M/s QMobile moves SHC for refund of Rs84.923m fine and Rs2m penalty KARACHI
M.B RANA
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/s Digicom Trading Private Limited (Q Mobile phone company) approached the Sindh High Court (SHC) and Qiled another petition for refund of Rs84.923 million imposed on the company as Qine and Rs2 million as penalty regarding seizing of thousands mobile phones due to alleged smuggling and mis-declaration. Counsel for the petitioner stated that on December 17, 2017, a consignment of four containers declared to contain LED lights were imported in the name of petitioner’s company and cleared through green channel facility, on account of some conspiracy by some unscrupulous elements, wrong shipment of mobile phones was made by UAE based shipper, 27,137 mobile phone sets purportedly recovered from one of the container were seized by the staff of Customs Preventive while remaining 78,160 sets of QMobile purportedly de-stuffed from remaining three containers were seized by the customs ofQicials on the charges of smuggling and mis-declaration. He submitted that a show cause notice was issued to the petitioner and petitioner submitted reply, however, Qine equivalent to 35% of value of the goods was imposed beside penalty of Rs2 million each in addition to payment of leviable duty and taxes. It may be mentioned that a consolidated amount of Rs300 million was voluntarily deposited by the petitioner for leviable duty and taxes in advance.
He argued that pay order for redemption Qine amounting to Rs84.923 million and post-dated cheques for impugned penalty of Rs2 million were submitted by the petitioner whereby the goods seized by the respondents were released after submission of necessary NOC from Pakistan Telecommunication Authority (PTA). He argued that, meanwhile, the FBR has issued SRO 1455(1)/2018
whereby mobile device with SIM or IMEI functionality brought into Pakistan in violation of the provisions of clause (s) of section 2 of the Customs Act, 1969 which have been seized or voluntarily presented to customs authorities on or before 31/12/2018 shall be allowed and would be released on payment of applicable duty and taxes payable thereon with imposition of zero Qine. That petitioner is ready to avail the
beneQit of the scheme given under SRO 1455(1) 2018 read with CGO 06/2018. He said that in pursuance of the afore-mentioned notiQication, application was Qiled in before custom ofQicials for refund of amount of Qine and penalty which were deposited as securities pending judgment of the appellate tribunal in the matter, and extending the beneQit of afore said notiQication. Citing Chairman Federal Board of
Revenue, Collector of Customs Preventive, Collector of Customs Preventive West as respondents, importer pleaded the court to declare the petitioner is entitled to the beneQit of the amnesty provided under SRO 1455(1)2018, direct them to refund above mentioned amount as Qine and as penalty. He also pleaded the court may restrain them from taking any coercive action including blocking of NTN/ User-ID of the petitioner.
Customs Port Qasim foils bid to smuggle betel nuts KARACHI
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CUSTOMS TODAY REPORT www.customstoday.com
ollectorate of Customs team apprehended huge quantity of smuggled betel buts after a successful raid at Port Muhammad Bin Qasim (PQA) According to the details, during examination of suspected unclaimed containers at Port Qasim betel nuts have been recovered from a container bearing registration no: APHU-7116257 and carried out its complete search. During the search it surfaced that huge quantities of smuggled betel nuts have been secretly placed in the shampoo drums.
— Exclusive Customs Today photo
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The said container was loaded from Indonesia with declared description of shampoo base in the big drums in which huge quantity of Betel Nuts was kept. The source further stated that out of total one hundred and sixty drums weighing twenty five metric ton smuggled betel nuts were found in one hundred and forty drums which were sealed exactly like shampoo base drums. The approx quantity of betel nuts is calculated to twenty metric tons which is said to be the huge quantity whereas the smuggled betel nuts stand at Rs14.5 million of rupees in the market. The investigation has been started and the case has been filed against the heinous crime.