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26 AbC Certified vol 75 issue no. 37
Weekly Weekly
Karachi, tue may 07 - mon may 13, 2019
Regd. no, mC-1381
getting SuppoRt
NAB Chairman’s excellent “accountability for all”policy gets full support of nation. | See pAge 06 | impLementing nSW RAWALPINDI
ASAD KHARAL
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Implementation of NSW would help promote cross-border trade, improve ease of doing business. | See pAge 04 | AboLiSHing 5tH SCHeDuLe
Member Customs Policy Javed Ghani says Govt will abolish fifth schedule of Customs Act 1969 in budget | See pAge 02 | CoLLeCting Revenue
Multan Customs collected Rs 2985.326 million against Rs 3838 million target in April 2019. | See pAge 03 |
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irector General InterServices Public Relations (ISPR) Major General Asif Ghafoor while sharing with the media the information about links of the Pakhtun Tahaffuz Movement (PTM) with Afghan and Indian spy agencies, said that time was up for them now as the PTM leaders had already enjoyed a lot of liberty. Addressing a press conference at the General Headquarters, Major General Asif Ghafoor said the Pakistan Army wanted to make every effort to resolve the issues faced by Pashtuns in tribal areas, but that the manner adopted by the PTM to voice such grievances would no longer be tolerated. Talking about the recent tensions with India and issues of national security, the head of the military's media wing also suggested that the PTM had received funding from Afghan and Indian intelligence services. "We want to do everything for the people [of tribal areas], but those who are playing in the hands of [foreign] people, their time is up. Their time is up," Maj Gen Ghafoor said, referring to the PTM. "But the instructions of the army chief will be fully followed. People will not face any sort of problem and neither will any unlawful path be adopted," he said, suggesting possible action against the PTM.
"You have enjoyed all the liberty that you wanted to," he said, addressing the PTM leadership. He questioned the PTM leaders including Manzoor Pashteen and the members of the National Assembly Mohsin Dawar, and Ali Wazir that where were they when terrorists were cutting throats of Pakhtuns and playing football with their heads. “Now they are talking about protection of Pakhtuns,” the DG ISPR said. He pointed that it was the Pakistan Army which fought against terrorists and forced them out of the tribal areas. The ISPR chief individually responded to the demands made by the PTM at its rallies and meetings. "When we took action against the TLP (Tehreek-iLabbaik Pakistan), people asked why action is not taken against PTM as they speak up too much as well”. "The Uirst person to engage with them [PTM] was me. I was told to engage with them by the army chief and I was given one order by the army chief: Do not use a harsh hand with them”. "I met with PTM leader and MNA Mohsin Dawar, and they had three demands: They said that mines and unexploded bombs still exist in tribal areas. Their demand was genuine, we created 48 teams and 45 per cent of these areas were cleared. As many as 101 casualties of the Pakistan Army also occurred in those areas while clearing them of those mines. We let those casualties happen as they happened in the line of duty.” Continued on page 09
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MAy 07 - MAy 13, 2019
SHC orders not to take action against m/s W.S brothers
KARACHI: The Sindh High Court (SHC) directed customs department not to take any coercive action against Muhammad Fayyaz, proprietor of M/s W.S. Brothers against seizing of its consignment of certain electronic products/goods including parts/spare parts of Samsung products on the ground that the goods carrying the Samsung mark/brand are not original Samsung goods products but are counterfeits and thus are liable to be forfeited/seized as enforcement of intellectual property rights.
$37bloantoberetired innextfour&half years:HammadAzhar ISLAMABAD
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govt to abolish 5th schedule of Customs Act in budget: ghani
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Customs I&I generates Rs1.7m through auction of NDP vehicles LAHORE
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www.customstoday.com irectorate of Customs Intelligence and Investigation (I&I) generated Rs1.7 million through auction of non-duty paid vehicles. The auction was held at Customs Intelligence and Investigation premises located at Allama Iqbal Town. During the auction various impounded vehicles were presented for auction which included Jaguar, Mercedez Benz, Honda Civic, BMW and six tonnes of cloth. Deputy Director Customs Intelligence and Investigation Ali Waheed supervised the whole auction process which was held in a transparent manner. Superintendent Chaudhary Javed and Ehtesham Naveed also assisted deputy director during the auction. It is also necessary to mention here that due to fixed prices of many seized goods, a few people showed interest in the auction.
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— Exclusive Customs Today photo
toms Act would provide a Uiscal space of over Rs100 billion to the government in the next Uiscal year 2019-20, starting from July. Pakistan and the IMF began talks for the bailout package. The IMF has proposed a condition to make tax efforts equal to 1.7pc of the Gross Domestic Product (GDP) for the next Uiscal year. Of this, Pakistan is required to take policy measures equal to 1.4pc of the GDP or over Rs600 billion. Any decision to abolish the Uifth
member Customs policy Javed ghani
schedule would cover only one-sixth of the additional tax measures and the government will also have to make similar moves in the Sales Tax Act. There is a strong likelihood that the reduced General Sales Tax rates will also be increased to standard 17pc. The items that will be removed from the Uifth schedule will be subject to the standard customs duty rates, ranging from 3pc to 2pc, including additional customs duty. The raw materials
Customs bKiA foils bid to smuggle foreign currency worth Rs5.2m
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PESHAWAR
iRfAn bAHADuR
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ollectorate of Customs staff deputed at Bacha Khan International Airport (BKIA) seized foreign currency worth Rs5.2 million and arrested two passengers. Sources told Customs Today that Assistant Collector Muhammad Asif received credible information that some smugglers will try to smuggle foreign origin currency. He alerted customs staff to enhance checking of passengers. The Customs team intercepted two passengers who were later identiUied as Ahmad Laiq and Muhammad Rehman. During the search, the customs team recovered 38000 Saudi Riyals from one passenger and 35000 Saudi Riyals from another passenger. The Uirst passenger did not declare the currency at the Customs Currency Declaration Counter (CDC) on the prescribed form.
Later upon body search in AC customs ofUice, Saudi Riyals 37000 and UAE Dirhams 20000 were also recovered from his possession. He said that both the passengers were arrested and FIR lodged against them. Total amount recovered from Uirst passenger is equal to Saudi Riyals 75000 and UAE Dirhams 20000 amounting to $25447 and amount recovered from the second passenger is equal to Saudi Riyals 35000 amounting to $9334/-.
attract minimum custom duty rates of 3pc in addition to additional customs duty. The Uinished products are subject to 20pc maximum tariffs, plus 2pc additional duty. The FBR member also said that rationalisation principles set for 2019-20 budget included incentives to local industry, reducing complexities of cascading principle where possible, and relief to general public, particularly those falling below or in range of poverty line.
AJK traders protest Indian decision to suspend barter trade — Exclusive Customs Today photos
inister of State for Revenue Hammad Azhar informed the Senate that a sum of $ 37 billion loan would be retired in the next four and half years. Responding to various supplementary questions during question hour, the minister said out of said loan, $ 9.2 billion would be retired during this year. He said the incumbent government inherited the excessive loans and efforts were being made to put the country in right direction. He said owing to steps taken by the government, current deficit account and trade deficit account had witnessed persistent decrease. To another question, the minister said that Rs27,376 billion domestic and $3,395 million external loans have been paid since July 1, 2018 to February 28, 2019. Around $ 1.2 billion interest has also been paid on the loans during the said period, he added.
he present government may abolish the concessional customs duty regime in the coming budget to generate over Rs100 billion as it faces a gigantic task of imposing over Rs600 billion in new taxes to meet a condition set by the International Monetary Fund (IMF) for a bailout package. “The Federal Board of Revenue and the National Tariff Commission (NTC) have proposed to abolish the Fifth Schedule of the Customs Act 1990,” FBR Member Customs Policy Javed Ghani told the National Assembly Standing Committee on Finance and Revenue. The Uifth schedule deals with concessional customs duty rates on imports of machinery, goods and materials. If the government approves the policy, it will affect the rates of nearly 400 tariff lines. Majority of the 400 tariff lines are currently subject to 0pc to 5pc customs duty rates. If abolished, their import duties would go up to as high as 22pc. Ghani said the total cost of concessions in customs duty rates stood at Rs186.1 billion during the July to March period of this Uiscal year 2018-19. Of this, the impact of reduced customs duty rates for the nine-month period was Rs75 billion under the Fifth Schedule of the Customs Act. During the last Uiscal year, the FBR had sustained Rs92.4 billion losses due to reduced customs duty rates. The deletion of the schedule from the Cus-
These passengers were going to Dubai through PK-283. Assistant Collector said that Federal Board of Revenue (FBR) has ordered BKIA to tight the vigilance at airports to curb the currency smuggling. He informed ‘as we know Pakistan’s name could be added in gray list of Financial Action Task Force (FATF) so we have geared up crackdown against the currency smugglers to removing country’s name from gray list’.
large number of traders staged a demonstration on Monday in protest against India’s unilateral decision to suspend barter trade across the Line of Control (LoC) in the disputed region of Jammu and Kashmir and demanded its immediate resumption. The protesters assembled outside the local press club from where they marched towards the office of the United Nations Military Observers Group for India and Pakistan near Domel, the confluence of the Neelum and Jhelum rivers, while chanting slogans.“Let the trade continue, let the poor [traders] make ends meet,” they shouted. The protesters were also holding a banner and several placards, reflecting their stance and demands about the activity.The suspension of intra-Kashmir trade from both Chakothi-Uri andTetrinote-Chakan da Bagh crossing points was announced by India in a unilateral move on April 18, citing alleged misuse of these routes by Pakistanbased elements. —CT Report
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NATIONAL 03
MAy 07 - MAy 13, 2019
Customs preventive foils bid to smuggle heroin to Spain through gpo
KARACHI: Collectorate of Customs Preventive thwarted an attempt to smuggle heroin in a successful raid at I.I. Chundrigar Road. According to the details, on the tip-off by higher authorities, a team of Customs Preventive was constituted to conduct a raid at the GPO situated at I.I. Chundrigar Road. Complete search was carried out and all the staff was inquired one by one regarding a particular consignment. During the raid, the team of Customs Preventive found a consignment which was being shipped to a foreign country. After opening the seal the team found 700 grams of heroin which was concealed in a vase.
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n a big development, the PTI government has removed FBR Chairman Jahanzaib Khan and Governor State Bank of Pakistan Tariq Bajwa. Sources said finally the government has decided to bring the major changes in two important institutions and decided to remove the Chairman Federal Board of Revenue Jahanzaib Khan and Governor State Bank of Pakistan Tariq Bajwa. Sources said the decision to change the FBR chairman was taken during the tenure of former Finance Minister Asad Umer. The government has removed both of the high officials due to deteriorating financial situation in the country. Notification of transfer from their current position will be issued. Sources revealed that Prime Minister Imran Khan had expressed dissatisfaction over the performance of Federal Board of Revenue regarding tax revenue collections. Advisor to Prime Minister Abdul Hafeez Sheikh was also not satisfied with the performance of chairman Federal Board of Revenue and Governor State Bank of Pakistan. During the recent interaction with IMF team, the officials of financial institution criticized the role of Federal Board of Revenue regarding broadening tax base and specially performance in revenue collection. Jahanzaib Khan, in pursuance of Establishment Division’s Notification No. PF(536)/ E-5(PAS) dated 28.08.2018, had taken the charge with effect from August 29, 2018. Dr Jahanzeb Khan regarded as the pride of the erstwhile District Management Group (now renamed as the Pakistan Administrative Service) before his appointment as Chairman of the Federal Board of Revenue (FBR).
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fbR assigns revenue collection target of Rs5536m to multan Customs for may MULTAN
imRAn ALi KHAn
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he Federal Board of Revenue (FBR) assigned Rs5536 million revenue collection target for the month of May 2018-19 to Multan Customs Collectorate. According to details, the Collectorate has been assigned monthly revenue collection task for the second month of the fourth quarter of the existing Uiscal year by Federal Board of Revenue. Multan Customs has been allocated different revenue collection tasks under the head of customs duty, sales taxes, federal excise duty (FED) and withholding taxes (WHT) for the on-going month of May 2017-18. Multan Customs Collectorate has been given customs duty revenue collection target of Rs1555 million for May. The Collectorate has been assigned Rs 3935 million target for the collection of sales tax for the duration of May. The Federal Board of Revenue has given collection task of Federal Excise Duty of Rs 18 million for the month of May. Multan Customs set income tax target of Rs 28 million for the period of May 2017-18. Meanwhile, Collectorate of Customs collected Rs.2985.326 million against Rs.3838 million throughout month of April of Uiscal Year 2018-19. The Collectorate of the Multan Customs collected Rs972.294 million under the head of Customs duty against the assigned target of Rs1220 million throughout April. Multan Customs has collected 80
— Exclusive Customs Today photos
FBR Chairman, Governor SBP removed from their posts
percent revenue task of Customs duty during April. The Collectorate was able to collect customs duty (CD) of Rs991.705 million during corresponding Uiscal year of April 2017-18. Multan Customs has collected Rs1977.163 million under the head of Sales taxes due to effective strategy of Collector Ambreen Ahmad Tarar in the month of April for ongoing economic year 2018-19. The set collection task was almost Rs.2563 million under sales taxes for April. Multan Customs attained
Collector Ambreen Ahmad tarar
77.1 percent collection task of sales tax in April. The collection of sales taxes has observed sudden decline due to less import clearances of ex-bonding of High Speed Diesel (HSD) from the Collectorate. Multan Customs also made additional sales tax collection of Rs 0.916 million for the duration of April. Multan Customs was able to collect Rs.2228.647 million in the corresponding month of April for economic year 2017-18. The Collectorate has collected Rs19.957 million against set task of
Rs 28 under the head of Federal Excise Duty (FED) in April of existing economic year. Multan Customs accomplished almost 71.3% tasks in April. It was able to collect Rs 25.099 million against target of Rs 8.57 million during corresponding period of April 2017-18. Multan Customs made collection of income tax of Rs14.996 million against set target of Rs27 million in said period. The Collectorate of Customs was able to collect Rs24.239 million under the head of income tax during same period of Uiscal year 2017-18.
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MAy 07 - MAy 13, 2019
Customs Court directs to complete investigation against m/s Azam & Sons
KARACHI: The Customs Court directed investigation officer to complete investigation and submit charge sheet against suspects namely Imran Butt son of Muhammad Azam Butt owner of M/s Azam and Sons, Muhammad Idress son of Abdul Majeed warehouse keeper of M/s General Services and Muhammad Arif son of Abdul Majeed warehouse keeper of M/s General Services, who were booked in a case of illegal removal of in-bonded goods without filing of ex-bond GD, thus evading legitimate government revenue.
Hafeez Shaikh asks fbR to simplify laws to promote cross-border trade ISLAMABAD
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Multan Adjudication issues ONO against M/s Carolina Fabrics (Pvt) Ltd MULTAN
imRAn ALi KHAn
www.customstoday.com ollector Customs Adjudication has issued Order-in-Original against M/s Carolina Fabrics (Pvt) Limited and imposed penalty of Rs500,000 along with demanded amount of Rs4.48 million under head of various taxes. M/s Carolina Fabrics (PVT) Limited involved in misusing of SRO 326 and 327 (I) 2018 dated 29.03.2008 under the export-oriented license no: 02/EOU/2014. M/s Carolina Fabrics (Pvt) Limited has imported duty-free raw material of 20759 kilograms of finished grey fabrics under the exportoriented scheme. It was observed during hearing that M/s Carolina Fabrics (Pvt) Limited has failed to consume the said imported quantity and declared closing balance as 20759 kilograms after the expiry of utilization period of two years. According to Rule -12 of SRO 327(I)/2008 dated 29.03.2008 the input goods acquired under these rules shall be utilized in the built-up and export of output goods within two years from the date of their import. Non-export of imported materials resulted into non-realization of government revenue. Therefore duty and taxes of the unconsumed quantity would be recovered from licensee M/s Carolina Fabrics (PVT) Limited amounting to Rs4.48 million under the head of customs duty, regulatory duty, sales taxes, withholding tax and others. M/s Carolina Fabrics (PVT) Limited contravened section 19 & 219 of the Customs Act 1969, section 32 (3A) of the Customs Act 1969 with rule 12 of SRO 327(I)/2008 dated 29.03.2008 punishable under clause –I & 14 Section 33 and 34 of the Sales tax act 1990 duty and taxes amounting to Rs.4.48 million along with additional duty, additional taxes and penalties are recoverable from licensee.
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dviser to Prime Minister on Finance, Revenue and Economic Affairs, Dr. Abdul Hafeez Shaikh, chaired the 2nd meeting of Steering Committee on National Single Window (NSW) to review the implementation of the trade related. Member Custom (Operations) Jawwad Agha gave a presentation to the committee highlighting the concepts and beneUits of NSW system. He informed that the implementation of NSW would help promote cross border trade as well as improving the ease of doing business in the country. He apprised that the establishment of NSW system was a basic requirement, under WTO trade facilitation agreement, as Pakistan is signatory to the said Agreement. He said that FBR was actively working on early implementation of NSW system which would play instrumental role in promoting cross border trade. The adviser directed FBR to simplify the existing laws and regulations to help promoting trade with neighbouring countries. He asked FBR to carry out further consultation on the business plan for
the establishment of NSW, with a view to have a broad based consensus, before its formal approval. It may be recalled that the Prime Minister has designated Pakistan
Customs as a lead agency, since October 2017, to implement NSW. Pakistan is required, under WTO Trade Facilitation Agreement, to establish NSW by 2022.
FBR Legal Dept wins 7676 cases involving revenue of Rs76484m ISLAMABAD
tARiQ DeRYA
www.customstoday.com he legal wing of FBR has won 7676 litigation cases involving Rs 76484 million revenue from different courts during current financial year 2018-19. According to details provided to Customs Today, the legal department of Federal Board of Revenue (FBR) has triumphed 755 number of cases worth Rs 2766 million in Supreme Court of Pakistan during current Fy18-19 (July to April) as well as it won 1839 number of cases in Sindh High Court worth Rs 43824 million. The FBR’s legal department succeeded in 188 number of cases in Lahore High court worth Rs 3940 million while it received Rs 75 million through 87 number of cases in Peshawar High Court, furthermore the FBR earned Rs 361 million in 123 number cases in Balochistan High Court. ItwasinformedthatthelegaldepartmentofFBRwon26numberofcasesworth Rs205millionintheIslamabadHighCourt. ItreceivedRs3019millionfrom502revenue litigationcasesatCustomsAppellateT ribunalwhereas32numberofcaseswere succeededbyCollectorAppealsaswellas theFBRprevailed4124numberoflitigation casesworthRs23374millionatCustoms AdjudicationCollectors.Officialsourcesof FBR informedthecorrespondentthatthe performanceofthelegaldepartmentofFBR couldbeenhancedbyhiringandselectionof lawyersinaprofessionalmanneraswellas thefinancialpackageshouldberevisedand percaserateshouldbeenhancedaccording tothenatureofcase.
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ogDCL scraps $5,600,000 worth contract from page 12
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ut, due to OGDCL’s department’s opposition for awarding extension to a tender previously won by CNPC, new tender number 3229 was not cancelled and extension at that time was also not given to CNPC,” said sources. Sources also said that CNPC had allegedly used its inUluence in OGDCL again and got delayed the tender (tender#3229) while due to delays in performing OGDCL drilling schedule as per original projection, up till now only seven (07) wells are drilled while only three (03) months are left to complete well drilling target till June 30 and OGDCL projection for this year till June was 27 wells. They said CNPC had used Drilling Departments to put
pressure on the SCM and other departments to get favors and allegedly AGM Drilling and Atizaz (Manager) were the main instrumentals for such maneuvering in favor of CNPC. It is also learnt from sources that AGM Drilling had served on one rig and during last Uiscal year, and he was found unable to complete well drilling target of 2018. “A similar case of rigs is under investigation with FIA and AGM Drilling is also accused in that case as well.” It is relevant to note that AGM Drilling Operations was contacted many times through text message and phone calls on his cell phone number. But, all efforts remained in vain as he did not respond. However, when contacted with Atizaz (Manager Services) to get his words, he said top management including OGDCL’s Directors had given approval and managing director (MD) OGDCL had endorsed the approval. He said due to urgency of the matter, CNPC was awarded extension.
He, however, said CNPC has been providing rig services at cheaper rate if count the previous rate. It is pertinent to mention that earlier a spokesman of OGDCL, upon contact, had said in order to meet OGDCL drilling targets for the ongoing Uiscal year 2018-19 and due to delay in delivery in already ordered rigs from abroad, senior management executive committee meeting was held and it was decided that a limited tender enquiry (negotiated tender) may be issued by inviting all rig contractors operating in Pakistan for provision of deep depth drilling rigs. These rigs have to be available locally for deployment by 20th April-2019. Due to time constraints in spud of new wells “Negotiated tendering” as allowed under PPRA Rules was considered the most viable option. Tender documents were dispatched to all local rig suppliers after necessary approvals. “The tender is in process of Uinancial evaluation and the
contract will be awarded to technically qualiUied and Uinancially lowest evaluated bidder,” said Ahmed Hayat Lak, OGDCL spokesman. About tender # Proc- 3229, the spokesman said that there has been no delay on the part of OGDCL, total 06 rigs were selected from the tender, 03 rigs were locally available and other 03 were to be mobilized from abroad. These 06 rigs (03 from M/s Hilong & 03 from M/s Sinopec) have been deployed at wells. Since OGDCL completed the extension procedure & formalities as per rules therefore no violation or Uinancial loss occurred to the company (OGDCL) and in fact rates were reduced with retrospective effect with signiUicant savings for the company. It is expected that by the end of ongoing Uiscal year i.e. June 30, 2019, Drilling Operation will be able to meet drilling targets by spudding new wells despite delay in supply of 02 rigs by the Contractors, claimed OGDCL spokesman.
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ISLAMABAD
ASAD KHARAL
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AB under the dynamic leadership of Honorable Justice (retired) Javed Iqbal, Chairman NAB is absolutely committed to root out corruption from country with iron hands with the realization of through professionalism, transparency and on merit as per law. Today, eradication of corruption and logical conclusion of mega corruption cases is the top most policy of NAB. NAB strongly believes that corruption is silent killer just like cancer which is major hurdle in the way of development and prosperity of the country. Considering these facts, National Accountability Bureau (NAB) is geared up to eliminate corruption and corrupt practices and recover looted money from corrupt and deposit it in national exchequer. NAB, under the dynamic leadership of Honorable Justice (retired) Javed Iqbal, has been rejuvenated and its three-pronged strategy of Awareness, Prevention and Enforcement has proved excellent. Due to this reason, today NAB has become a vibrant institution, and reports and surveys of different reputable national and international organizations like PILDAT, Mishal Pakistan, Gallop and Gillani Survey, Transparency International and World Economic Forum have not only appreciated performance of NAB but also indicated that 59 percent Pakistanis have shown their full trust upon NAB due to its across the board actions. NAB strongly believes in self accountability, transparency and merit as per law and has opened its doors for citizens related to their corruption related complaints. Chairman NAB during public hearings on every last Thursday of month not only listened public complaints himself but also disposed off 3000 complainants through
— Exclusive Customs Today photo
personal hearings as per law. The performance of NAB, under the dynamic leadership of Honorable Justice (retired) Javed Iqbal, Chairman NAB, remained excellent. NAB not only received 44315 complaints last year which have almost doubled from the previous year in 2019. NAB has Uiled 590 corruption references in respected Accountability courts which is an excellent achievement as compared to last Uive years of NAB. On the basis of across the board accountability under its enforcement policy, NAB has not only arrested 600 accused persons but also recovered Rs 4300 million from corrupt elements and deposited all amount in national exchequer during the tenure of present leadership of NAB. The recovery made by NAB was then returned to hundreds of effectees and some government departments but not a single rupee has been received by any NAB employee as NAB ofUicers/ofUicials consider eradication of corruption from the country as their national duty. NAB has convened 50 Executive Board meetings in which various complaint veriUications, inquiries, investigations and references authorized and approved. The present management of NAB has devised a comprehensive QuantiUied Grading System in order to further improve the performance of NAB Headquarter and all Regional Bureaus. Under QuantiUied Grading System, NAB Headquarter and Regional Bureau’s are being evaluated for the last three years on Annual and Midterm basis at a given criteria which has proved very successful and the performance of NAB’s Regional Bureaus is being increased day by day due to regular monitoring and inspection. NAB had organized SAARC Seminar in Islamabad in which SAARC member countries including India participated and appreciated the Anti-Corruption Strategy adopted by NAB in curbing corruption as Pakistan is role model for SAARC countries due to its proactive and effective Awareness, Prevention
and Enforcement Anti-Corruption Strategy. Today, NAB is the Uirst Chairman of SAARC countries Anti-Corruption Forum which is great achievement for Pakistan due to NAB efforts. NAB has devised a state-of-the-art Monitoring and Evaluation System (MES) which was introduced at NAB Headquarter and NAB’s regional Bureaus in order to measure the effectiveness of performance which helps in enhancing the operational, monitoring and evaluation capabilities of NAB at NAB Headquarter. The main purpose of effective Monitoring and Evaluation System (MES) is to cater the needs of all concerned having salient features of maintenance of data at each stage including complaint entry, complaint veriUication, inquiry, investigation, prosecution stage and record proceedings of Regional Board Meetings and Executive Board Meetings including case brief, decisions made. MES has the ability to analyze data in qualitative and quantitative terms having warnings and alarms system for violators. Monitoring & Evaluation System (MES) is a
today, more than 1210 corruption references of nAb are under trial in various respected Accountability Courts of the country and approximately involving total amount of Rs 900 billion
web-based application, user friendly and interactive online system developed to enhance the operational, monitoring and evaluation capabilities of NAB. Today, more than 1210 corruption references of NAB are under trial in various respected Accountability Courts of the country and approximately involving total amount of Rs 900 billion. NAB on bilateral cooperation, has signed a Memorandum of Understanding (MOU) with China to streamline structure and cooperate in the Uields of anti-corruption. In the context of CPEC this cooperation will further boost conUidence in projects undertaken in Pakistan. NAB has established its Uirst state of the Art Forensic Science LAB (FSL) in NAB Rawalpindi which has facilities of Digital Forensics, Questioned Documents and Fingerprint Analysis. NAB has rationalized its workload and timelines have been prescribed for efUicient, effective and expeditious disposal of cases putting a maximum limit of 10 months - from complaint veriUication to inquiry to investigation and Uinally to a reference in the Accountability Court. NAB has also introduced Combine Investigation Team system in order to beneUit from the experience and collective wisdom of senior supervisory ofUicers. Today, eradication of corruption has become voice of whole nation and NAB under the dynamic leadership of Honorable Justice (retired) Javed Iqbal, Chairman NAB, strongly believes that NAB’s Uirst and last afUiliation is with the state of Pakistan. Due to the hard work put in by all ranks of NAB and feedback received from all segments of society, people of Pakistan are appreciating the initiatives taken by the present management of NAB under the dynamic leadership of Honorable Justice (retired) Javed Iqbal, Chairman NAB, to eradicate corruption as corruption is mother of all evils which has to be checked today with iron hand. NAB hopes that collective efforts of all segments of society could make it possible.
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eDitoRiAL
Chinese market access
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pecial Advisor to the Prime Minister on Commerce and Textiles Abdul Razzak Dawood revealed during the relevant National Assembly Committee's meeting that China has agreed to allow market access to Pakistani exports on the pattern of Association of Southeast Asian Nations (ASEAN) countries. This, he clarified, implies duty-free access on 313 items which currently account for a total of 64 billion dollar Chinese imports annually (with Pakistan previously allowed to export only one billion dollars per annum). If Pakistan can export 5 percent of total Chinese imports of these products then, Dawood projected optimistically, our exports to China would exceed 3.3 billion dollars. A news item maintains that China has agreed to liberalize 75 percent tariff lines and 90 percent trade value of China in the second phase of the Free Trade Agreement (FTA). While critics maintain that success in negotiating with China may be sourced to China's commitment to China Pakistan Economic Corridor yet one would have to appreciate efforts of Razzak Dawood to secure the deal with China. ASEAN FreeTrade Agreement (AFTA) comprising six original member countries (increasing to the current 10 countries) requires goods originating within ASEAN members to apply a common effective preferential tariff scheme from between 0 to 5 percent with following exceptions: (i) temporary exclusions; (ii) sensitive agricultural products; and (iii) general exceptions. Unlike the European Union, however, AFTA does not apply a common external tariff on imported goods. China is not an ASEAN member country but is a signatory to the free trade area, an agreement effective since 1 January 2010, with ASEAN countries accounting for a decline in the average tariff on Chinese goods sold in ASEAN countries from 12.8 percent to 0.6 percent (with latter member countries given a deferral for full implementation) and a decline in tariff of ASEAN products sold in China from 9.8 percent to 0.1 percent.There is no doubt that raising exports is the most desired form of earning foreign exchange. A slowdown in the economy of those countries where the bulk of our remittances are sourced or indeed due to their changing geopolitical considerations remittances may decline overnight. Hence the way forward has to be through negotiating bilateral trade agreements, free or preferential, or agreements with trading blocs. Pakistan is a signatory to FTAs with China, Sri Lanka and Malaysia and Preferential Trade Agreements with Iran, Indonesia and Mauritius (with little growth in our exports to Iran, Mauritius and Sri Lanka). In June 2016, Pakistan's trade balance deteriorated with these countries - a trend attributed by a study to 'ineffective, ill-planned negotiations' by the Ministry of Commerce with trading partners in the region. One would hope that negotiations with other countries proceed as well as with China.
Single vAt for goods and services R
LAHORE
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eports indicate that the Medium Term Economic Framework (METF) proposes a single value-added tax (VAT) for goods and services - 17 percent. While VAT for goods is a federal tax and hence collected by the Federal Board of Revenue (FBR), the VAT on services is a provincial subject. Previous to the PPP-led coalition government (2008-13) sales tax on services was collected by the FBR on behalf of the provinces for a nominal fee and the collections transferred to the federal consolidated fund for onward transmission to each province according to its speciUied share. Sindh's legitimate concern was that while a signiUicant portion of the tax on services was
being collected from Karachi yet the share of the province from the consolidated fund was determined by the NFC award where Punjab took the lion's share. The Sindh government took a lead in levying and collecting sales tax on services subsequent to the passage of the 18th Amendment (speciUically in relation to item No. 49 of Part A of the Fourth Schedule thereof) and pursuant to Articles 8 and 9(2) of the 7th National Finance Commission Award, notiUied in 2010, by enacting Sindh Revenue Board Act, 2010. The Sindh Sales Tax on Service Act was passed in 2011 and became effective from 1 July 2011 "for the levy and collection of Sindh Sales Tax on the services provided or rendered." The Sindh government has steadily raised its revenue generation from sales tax on services in particular.
In addition, the MTEF proposed some standard normal IMF conditions including removal of exemptions and excessive tax credits from income tax, sales tax and federal excise duty. Amnesty scheme yet to be approved by the cabinet was also a proposed feature of the MTEF as a source of revenue though it is unclear whether it would be accepted by the cabinet in its present form (with some members of the cabinet reportedly arguing against the high rates proposed) or amended and whether the International Monetary Fund (IMF) would accept it as it has been critical of previous amnesty schemes and maintained in one of its quarterly reports under the Extended Fund Facility that these schemes, "open another loophole in the system in addition to the ones that already exist for remittances and equity stock investment and
raises potential of money laundering risks. The immunity from routine audit hinders the self-assessment process and the amnesty - entailed by waiving penalties and interest - is likely to be detrimental to improving compliance and collections as taxpayers will develop the expectation of future immunities." The objective of the MTEF was to convince the (IMF) that these measures would raise revenue to the level required under the yet to be signed three-year bailout package. As per reports, the MTEF envisaged an additional revenue effort of about 2.6 percent of GDP over a period of three years: 1.1 percent of GDP next year, 0.9 percent in 2020-21 and 0.3 percent in 2021-22. However, there is many a slip between the cup and the lip with respect to the acceptability of the MTEF proposals within the country as well as by the IMF.
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NATIONAL 09
MAy 07 - MAy 13, 2019
Customs JiAp foils attempt to smuggle 1.2 kg heroin
KARACHI: Customs staff deputed at Jinnah International Airport on Tuesday successfully foiled an attempt of smuggling by seizing 1.2kgs of brown heroin powder. According to sources, the illicit drug was being carried by a passenger Jawadullah who is a resident of Charssada and was trying to fly to Qatar. During thorough examination at Customs counter, heroin powder was recovered by dismantling a plastic stool. It was smartly concealed in the said container that it went almost undetected from scanning machine installed at departure.
time is up for ptm leadership: Dg iSpR major general Asif ghafoor from page 01
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heir [PTM's] next demand was about clearing away checkposts. Pak Army lost thousands of soldiers at these checkposts. The issue of missing persons was their third demand and they created a list of those missing persons. The list has shortened to 2,500 cases today and the missing persons commission is working day and night to resolve those cases”. "On the PTM website, they have got a number that states the amount of funds they have collected from Pashtuns around the world. But tell us how much money did you get from the NDS (Afghan National Directorate of Security) to run your campaign? How much money did RAW (India's Research and Analysis Wing) give you for the Uirst ‘dharna’ in Islamabad? Superintendent of Police Tahir Dawar is killed in Afghanistan, in what capacity did PTM talk to the Afghan government, and say that the Pakistani government should not be handed the body and the body should only be given to the Dawar tribe? "Why did NDS give you funds for Arman Loni’s funeral and the ‘dharna’ that followed? If you have these funds, why do you not use these funds for the development? Who was Manzoor Pashteen’s relative who visited Indian consulate in Kandahar last year and how much funds were given to him. How much funds the Indian consulate in Jalalabad provided them and how many dollars did the Indian diplomat in Islamabad gave them in May, 2018. "When Arman Loni died, funeral prayers were offered for him in Afghanistan. But how is it that when 10 policemen lost their lives
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
trying to protect 800 students giving police entry exams in Balochistan, you did not go to the ‘namaz-i-janaza’ for those 10 men. And no ‘namaz-i-janaza’ was held for those 10 men in Afghanistan”. "When Loni died, the Afghan prime minister gave a statement in his favour and you [PTM] endorsed it”. "Those people who are playing with the people whose issues they have brought forward, I would like to tell them that their time is up. Their time is up”. "I would like to ask the PTM to provide me another list — besides the one of the missing persons — of all the strength of the Tehreek-i-Taliban Pakistan (TTP) that exists in Afghanistan, so that I could tally the two to see if any of the missing persons are actually sitting there [in Afghanistan]. He then delivered a message in Pashto to the Pashto-speaking people, urging them to not be provoked by the "anti-state forces". "My respected Pakhtun brothers, sisters, mothers, elders and youth. First, I pay my salutations to you. As a representative of the Pakistan armed forces, I want to tell you that the Pakistan armed forces belong to you, just like Pakistan belongs to us all. We will all including Pakhtun population prosper if Pakistan is prosperous and thriving. And if God forbid, some evil befalls Pakistan, it will be a loss for the entire country. You know that some people misled by others want to provoke you against Pakistan and its institutions. I want to say that the state acknowledges your sacriUices and it is working ceaselessly to solve your problems. Pakistan armed forces will not rest until your issues are resolved. We hope that you will not pay any heed to their rhetoric and instead will stop these anti-state forces and play your role in strengthening Pakistan." Major General Asif Ghafoor made it clear on India that Pakistan reserves the right to use every capability for its defence, warning
the adversary to refrain from testing the resolve of the Pakistan’s armed forces. “If such a time comes, India must remember that there will be a repeat of February 27,” he said. Referring to a statement of the Indian army chief that they were not keeping nuclear weapons to Uire on eve of Devali, the spokesman for Pakistan Army said that leaders of a nuclear state must remember that such statements are not appropriate, saying that nuclear capability is a weapon of deterrence. “It is also conUidence of the state
Why did nDS give you (manzoor pashteen) funds for Arman Loni’s funeral and the ‘dharna’ that followed? if you have these funds, why do you not use these funds for the development?
having nuclear capability, which matters,” the DG ISPR said, maintaining that a state like Pakistan reserves the right to use every capability when it comes to its defence. The military spokesman said India has been telling uncounted lies since the Palwama incident on February 22 and then the Balakot air strikes on February 27. “We are not responding to their false claims and that is why they are continuing,” he said, adding that they have many facts to reveal, but would do so at a proper time. He also asked Indian leadership to also tell media as to what was response of the Pakistan Air Force (PAF) on February 27 at Nowshera area in response to India’s February 26 misadventure. “They hit one target in Balakot with four missiles, whereas we responded with six missiles on four targets,” he said. He said the media should also be told as to who was present inside the Brigade headquarters of Indian army when the PAF engaged it, but Uired missile intentionally at a safe distance, and what was state of ammunition depot and whether it is in working state or not following February 27. Major General Asif Ghafoor said the adversary must remember now it is not the 1971 era, nor it is army of 1971. “Had there been Pakistani media of today in 1971, it must had exposed Indians’ designs and brought forth many facts and East Pakistan might not have separated,” he said, adding that Pakistani media have been playing a key role in operations against terrorism for the last two decades. Once again making offer of talks to India, the DG ISPR said the Indian leadership should come to talks to resolve outstanding issues like Kashmir if they want peace in the region. “The support for Kashmiri people runs in our veins,” he maintained.
Appeal to govt to take benefits of Chinese FTA To,
expected after second phase of FTA. Govt should conduct for a survey to have awareness about the needs of Chinese market. The survey would help industry to develop and modify the products according to the demands of Chinese consumers. Ease of doing business was an important factor and to secure space in Chinese and other markets around the globe. It was a proof of the fact that Pakistan has all resources and abilities to organize international events. Frequency of exhibitions should be enhanced as these were the best to catch the attention of international buyers.
Abdul Razak Dawood, Adviser to PM on Revenue, Islamabad Dear Sir,
As we have just inked second phase of Pakistan China Free Trade Agreement (FTA), I want to bring in your notice that second phase of free trade agreement between the two countries was an opportunity to get share in Chinese imports of over $ 1.74 trillion. Business community needs to concentrate on product diversiUication and quality for getting maximum beneUits from the duty free access to the Chinese market. Thousands of products have been displayed at more than 250 stalls from local and foreign exhibitors.
China is one of the leading economies of the world. Increase in Pakistan’s export to China means increase in our participation in
international trade that will certainly improve our economic growth, while jump of $ 6 billion in exports from Pakistan to China was
Yours Sincerely, Almas Hyder, President LCCI, Lahore
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10 NATIONAL
MAy 07 - MAy 13, 2019
Court seeks progress report against m/s ZR Corp in hot rolled steel sheets case
KARACHI: The Customs Court sought charge sheet against suspects namely Zubair Abdul Aziz (reportedly dead) therefore his legal heirs and inherent owner of M/s ZR Corporation and others, who were nominated in a case of illegal removal of hot rolled steel sheets in coils of prime quality. Investigation officer of Customs Appraisement East submitted another FIR against suspects and informed the court that a team of customs dept visited at SITE area premises of the warehouse namely M/s General Services and found Nadeem (record keeper) and Amin Zikar the manager available in the office.
tausif Qureshi distributes certificates among participants of course organized by DgtR FAISALABAD
nAeem SHeiKH
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— Exclusive Customs Today photo
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irectorate General of Training (Customs) conducted a training course on the topic of smuggling. The participants of the training course comprise BS-16-18 ofUicials of Customs Lahore, Sialkot, Faisalabad and Multan, and Customs Intelligence Lahore. Federal Board of Revenue exmember Tausif Ahmad Qureshi, was the resource person. He elaborated the concept, phenomenon and methods of smuggling which manifests in Ulow of banned, restricted and smuggled goods from supply areas to demand areas. He attributed smuggling to a number of socio-economic factors. Firstly society’s craze for prime quality foreign origin goods has overwhelmed all restrictions and prohibitions which has established an acceptability in the society. Secondly government has failed to net trade failures and to regulate Uiscal policies. The failures emanate from lack of alternate business opportunities. Thirdly the society has developed a conspicuous pattern of consumption of consumer goods irrespective of the fact whether the goods are duty paid or not. Fourthly the Government has imposed high tariffs on Uinished goods in order to protect local industry. This aspect has ignited the trend of smuggling. Lastly among other causes, smuggling entails huge Uinancial and pecu-
niary gains. Mr. Tausif Qureshi stated that phenomenon of smuggling emerged in Pakistan’s tribal areas during 1960s. At that point of time, the Government did not attempt to curb this menace due to two main reasons. Firstly industry and agriculture did not exist in the area. The smuggling provided avenues of employment and living in the form of hotel, labour and transport to the local population. Secondly at that time, Afghanistan was playing up the issue of Pakhtoonistan. Government of Pakistan did not want to earn the animosity of tribal people. At that juncture, any action could create disturbance and unrest in the
area. Now this phenomenon has assumed the shape of a monster to be reckoned with. The resource person explained the penal provisions relating to smuggling as envisaged in clauses 8,9,89 and 90 of Section 156 of Customs Act, 1969. The major smuggling prone items are vehicles, tyres, fabric, cigarettes, diesel and mobil oil. He explained the relevant provisions of Customs Act, 1969 for carrying out anti-smuggling functions. The provisions related to power to search on reasonable ground, persons to be searched may desire to be taken before gazetted ofUicer of customs or magistrate, power to screen or
X-ray bodies of suspected persons for detecting secreted goods, power to arrest, power to issue search warrant, power to search and arrest without warrant, power to stop and search conveyances, power to examine persons, power to summon persons to give evidence and produce documents or things, person escaping may be afterwards arrested, seizure of things liable to conUiscation, things seized how dealt with, procedure in respect of things seized on suspicion by the police, and when seizure or arrest is made, reason in writing to be given. Tausif Qureshi also drew focus of the participants about procedures contained in certain
provisions which are closely connected with the smuggling activities and seizure of goods. These pertained to power to detain packages containing certain publications imported into Pakistan, procedure for disposal by High Court of applications for release of packages so detained, power to require production of order permitting clearance of goods imported or exported by land, power to prevent making or transmission of certain signals or messages, power to station ofUicer in certain factories, restriction on the possession of goods in certain areas and punishment of persons accompanying a person possessing goods liable to conUiscation.
PESHAWAR
iRfAn bAHADuR
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he Air Freight Unit (FIU) of Customs Preventive posted at Bacha Khan International Airport (BKIA) thwarted an attempt of smuggling 342 smart phones from baggage of a passenger traveled through Gulf Air Ulight GF 786 to Peshawar. The Customs sources disclosed that following a tip-off received from Additional Collector Customs,
Preventive Customs staff of Bacha Khan International Airport Peshawar foiled an attempt of smuggling 342 smart phones. Sources said that market value of the seized smart phones is around Rs11.6 million involving duty and taxes of Rs4.1 million. The contraband mobile phone sets were recovered from the abandoned baggage of a passenger in the Arrival Hall. The passenger succeeded in slipping away from the hall sensing gravity of situation as Customs staff was on high alert. The absconding passenger was
— Exclusive Customs Today photo
peshawar Afu foils bid to smuggle 342 smart phones worth Rs15.7 million
however identiUied as Nabeel Ahmad resident of Dabgari. FIR has been lodged under the relevant provisions of Customs Act, 1969 and further investigation is underway. The Additional Collector Customs Preventive appreciated the work done by the Customs staff and said that ‘we are following hard lines of Collector Customs Preventive Asif Saeed Khan Lughmani to curb the smuggling which causes loss to the national exchequer’. The collector added that 14th attempt of smuggling has been thwarted by AFU in Peshawar Airport during this current month of May.
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CARTOONSSPECIAL 11
MAy 07 - MAy 13, 2019
multan Rto transfers five iR oďŹƒcers
MULTAN: The FBR Regional Tax Office (RTO) has issued notification regarding transfer of five Inland Revenue Officers. According to details, Commissioner Muhammad Asim Haleem has issued notification for transfer of five employees. Assistant Commissioner Inland Revenue Muhammad Akbar Shahab has been transferred from Inland Revenue Unit Rajanpur to Inland Revenue unit Muzaffargarh. Inland Revenue Officer Sarfraz Ali has been relocated from CIR Office to Inland Revenue Unit Mian Channu.
Customs i&i detects tax evasion of Rs246.77m by m/s pak telecom mobile Ltd KARACHI
tARiQ DeRYA
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irectorate of Customs Intelligence and Investigation detected tax evasion worth Rs246.77 million by M/s Pak Telecom Mobile Ltd Islamabad while the consignment was released against the BG. Talking with Customs Today the sources of I&I said that in pursuance of speciUic information to the effect that M/s Pak Telecom Mobile Ltd (PTML) Islamabad has been involved in evasion of duty taxes on import and clearance of telecom equipment through mis-declaration of description, quantity and concealment of actual import value. Sources said the Regional ofUice Karachi of this Directorate General has intercepted their two consignments comprising 2Ă—20 containers cleared vide Good Declaration (GD) No. KPPI-HC-63309 and KPPI-HC-63307 while similar consignment cleared vide GD No.KPPI-HC-61394 through Customs Collectorate Muhammad Bin
Qasim Karachi was also intercepted in the course of above refereed enforcement activity. The relevant copies of contract, a Bill of Quantity
(BOQs) and price list procured from the importer in terms of section 26 of the Customs Act 1969 showing description (itemized detail), quan-
tity and value revealed that manipulated invoices without itemized details, quantity and unit value were produced and relied upon and
Kohat Customs seizes smuggled cloth & cigarettes worth Rs4 million
consignments were got cleared by mis-declaring the description, quantity and value against the actual description and quantity.
Appraisement east collects Rs34831.53m during April KARACHI
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KOHAT
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he Customs staff deputed at Kohat Tunnel Check Post seized huge quantity of foreign origin smuggled cloth and cigarettes worth Rs4 million.
Sources told Customs Today that Kohat Customs, functioning under jurisdiction of Customs Peshawar, received secret information about smuggling of cloth and cigarettes through G.T. Road towards Kohat Tunnel. Sources told that pursuing the said information the Customs Anti-Smuggling Organization (ASO)
Kohat led by Inspector Muhammad Janzeb seized 4500 meter cloth along with 7 cartons of various brands of foreign origin fake cigarettes. The said goods were recovered from different vehicles and because of insufficient quantity of seized goods vehicles were not seized.
ollectorate of Customs Appraisement East collected Rs34831.53 million during the month of April 2019 under heads of all duty and taxes. According to details, Appraisement East collected Rs10624.58 million under the head of customs duty (CD), Rs11672.25 million as sales tax (ST), Rs12458.12 million as income tax (IT) and Rs 76.58 million as federal excise duty (FED). Earlier during the month of March 2019, Appraisement East collected Rs33423.04 million which includes Rs 10548.47 million under the head of customs duty (CD), Rs11549.78 million as sales tax (ST), Rs11247.54 million as income tax (IT) and Rs 79.25 million as federal excise duty (FED).
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12
MAy 07 - MAy 13, 2019
faisalabad Customs seizes alcohol bottles from airport
FAISALABAD: The Customs officials deputed at Faisalabad International Airport confiscated three wine bottles from passengers traveling via different flights. Sources told Customs Today that the officers carried out operations in different flights coming from Dubai to Faisalabad, Turkey to Faisalabad, and Muscat to Faisalabad. Customs inspector Muhammad Ramzan Shahid intercepted a passenger Sains Landa who arrived at Faisalabad from Dubai via Flydubai Flight No: QP-624.
ogDCL scraps $5,600,000 worth contract for hiring of rigs after Customs today coverage ISLAMABAD
ASAD KHARAL
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il and Gas Development Company Limited (OGDCL) has now scrapped USD $5,600,000 worth contract which was earlier awarded to a Chinese company - CNPC (Chuanqinq Drilling Engineering Company Ltd.) - for hiring of rigs allegedly in violation of PPRA rules, said sources. Customs Today raised this issue and reported that the contract worth USD $5,600,000 was awarded to CNPC without initiating even a process of pre-qualifying the companies by OGDCL. As per PPRA rules, OGDCL cannot send limited/negotiated tenders without initiating a process of prequalifying companies while a tender with same value should be published in international newspapers. Sources in OGDCL informed Customs Today that OGDCL management has now scrapped USD $5,600,000 worth contract which was earlier warded to a Chinese company- CNPC (Chuanqinq Drilling Engineering Company Ltd.)for hiring of rigs. They said that internal auditor has pointed out the sheer violation of Public Procurement Regulatory Authority (PPRA) rules in the award of contract to a Chinese Uirm. They said OGDCL management has forwarded the matter to PPRA and sought opinion on the matter. And, in response, PPRA has made it crystal clear to the OGDCL that instead of negotiated tender, press tender should be practiced, said sources. “On Uinding bundle of complaints and objections from internal auditors coupled with PPRA opinion on negotiated tender, OGDCL management has decided to scrap the said tender,” said the sources.
Customs today published ogDCL story in 9th April, 2019 issue
A spokesman of OGDCL when contacted said, “Negotiated tendering mode was adopted in this case pursuant to Rule 42 (d) of Public Procurement Rules. One of the fundamental conditions was availability of rig by April 20th and it became the basis of technical disqualiUication of the bidder which was not able to conUirm availability of rig within the given timeline. There was however difference of opinion internally on adopting this mode and matter was referred to PPRA for clarity. Since April 20th has already passed therefore logically and legally contract cannot be awarded on the basis of this tender. This is now a closed chapter. PPRA’s opinion whenever received would be used for reference and
guidance,” said Ahmed Hayat Lak, spokesman of OGDCL. According to sources, CNPC had allegedly inUluenced the board and the management of OGDCL and sought approval for hiring of its one rig. And, the OGDCL had awarded approval in this regard in February 2019 through a limited/negotiated tender, which was not published in the international newspapers. They said that OGDCL had sent CNPC a limited tender for procurement of two (02) rental rigs and this tender was only sent to CNPC and Deutag Drilling, while approval was given to CNPC only and Deutag was declared technically disqualiUied. They said CNPC was awarded this tender on higher rates in comparison to the rates which were
previously offered by CNPC in OGDCL tender number 2020. They said the cost of this purchase order/contract awarded to CNPC was USD $5,600,000, which was granted without initiating even a process of pre-qualifying the companies by OGDCL. As per PPRA rules, OGDCL cannot send limited/negotiated tenders without initiating a process of prequalifying companies while a tender with same value should be published in international newspapers, said sources. Sharing details of alleged award of USD $5,600,000 worth contract for hiring of rigs, sources said that due to slow drilling operations, OGDCL’s Drilling Department had raised the need of three more rigs before OGDCL management for
drilling/spudding of wells to meet target till June 2019. Available documents with this scribe said that OGDCL tender #2020 was published in 2017 and OGDCL received offers from the rig contractors. The scope of work was to supply six (06) drilling rigs-2000hp for onshore drilling and all services were inclusive, while the projected wells to be spudded either in the 4th quarter of 2016-2017 or by 1st quarter 20182019. And, in this contract three (03) rigs were provided by CNPC (Chuanqinq Drilling Engineering Company Ltd.), a Chinese origin drilling company based in Islamabad-Pakistan. The value of this contract was USD$ 22,968,209.48, while duration of the contract was one (01) year expired on 30th June 2018. Sources said that CNPC had allegedly tried to inUluence OGDCL Drilling Department for mobilization of its rigs by getting an extension for OGDCL tender # 2020 at the end of this contract term. However, they said OGDCL’s departments like SCM (Supply Chain Management, Audit etc) other than Drilling Department had opposed to grant CNPC extension. And, extension at that time was not given to CNPC as new tender number 3229 was published by OGDCL for rental of six rigs in 2018. As a result to this, nine (09) bids were received and six lowest Uinancials contractors were given the purchase order and SENOPAC and HIGH Long etc. were among these companies. CNPC offer was rejected being highest and OGDCL awarded contract to the other bidders who were technically qualiUied and lowest in commercial as per the PPRA rule, said sources. Sources were of the opinion that because CNPC did not won this tender and its rigs were going demobilized so the company (CNPC) had allegedly tried to use its inUluence in drilling department once again to get this tender cancelled and also for securing extension to previous tender (tender number 2020). Continued on page 04
Dg valuation revises customs values of formic acid T
ISLAMABAD
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he Directorate General of Customs Valuation has revised the customs values of formic acid through Valuation Ruling No: 1367/2019 under Section 25-A of the Customs Act-1969. Earlier the Customs values of formic acid were determined vide Valuation Ruling No. 807/2016, dated 22-01-2016. There were several representations from importers and from Pakistan Chemicals and Dyes Merchants Association (PCDMA) and Karachi Chamber of Commerce and Indus-
try, wherein they contended that prices of Formic Acid have declined in the international markets. Therefore, customs values determined in the existing valuation ruling are not reUlective of prices in international markets. Keeping in view the prevailing prices of the subject goods, this Directorate General initiated an exercise for re-determination of the Customs Values of the Formic Acid in terms of Section 25-A of the Customs Act, 1969. Several meetings with stakeholders including importers and representatives from Uield formations were held in this Directorate General to discuss the prices of the
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subject goods. The importers / stakeholders were requested to submit invoices of imports during last three months showing customs value. 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 substantiate their contentions. During the meetings the importers and representatives from KCCl and PCDMA stated that the customs values of Formic Acid were determined vide Valuation Ruling No 807/2016, dated 22-01-2016 which is more than three years old and need to be revised.