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PAKISTAN’S FIRST INDEPTH NEWSPAPER ON CUSTOMS
26 ABC Certified Vol 75 Issue No. 33
Weekly Weekly
Karachi, Tue Apr 09 - Mon Apr 15, 2019
Regd. No, MC-1381
Price Rs. 50.00
DETERIORATING ECONOMY
Finance Minister Asad Umar identified primary reasons of deteriorating situation of economy. | SEE PAGE 03 | CATCHING NON-FILERS
ISLAMABAD
ASAD KHARAL
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Hammad Azhar says PTI govt would initiate a crackdown on four to five million non-filers in May. | SEE PAGE 02 | SURPASSING TARGET
Pakistan Customs surpassed target by collecting Rs510.11 billion as duty and taxes during July – March | SEE PAGE 04 | SEIZING GOODS
Peshawa Customs Collectorate seized goods and vehicles worth Rs230.4 million in March 2019. | SEE PAGE 02 |
il and Gas Development Company Limited (OGDCL) has awarded USD $5,600,000 worth contract to a Chinese company- CNPC (Chuanqinq Drilling Engineering Company Ltd.)-for hiring of rigs allegedly in violation of PPRA rules, said sources. Surprisingly, recently OGDCL top management have been appearing in National Accountability Bureau (NAB) to clear their positions in various inquiries/investigations initiated by corruption watch dog (NAB) after receiving complaints. Similarly, dozens of corruption cases of OGDCL are under investigation with Federal Investigation Agency (FIA). However, it appeared that OGDCL management have been leaving no stone unturned to avoid compromising on concerned rules while dealing with business related matters, and company’s performance/targets. Sources in OGDCL informed that CNPC had allegedly inVluenced the board and the management of OGDDCL seeking 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 disqualiVied. 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 Cudtoms Today 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 2018-2019. Continued on page 10
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NATIONAL
APRIL 09 - APRIL 15, 2019
M/s Usmanco Int’l approaches SHC against detention of consignments
KARACHI: M/s Usmanco International approached the Sindh High Court (SHC) against detention of its consignments of I.V. Canola/ I.V Catheter imported from Turkey due to disputed valuation. Counsel for the petitioner stated in his constitutional petition that petitioner is a proprietorship concern engaged in the commercial import of I.V. Canola/ I.V Catheter with and without stoppers from Turkey. He further submitted petitioner is seriously aggrieved and highly prejudiced by the actions of the respondents.
Multan I&I seizes smuggled black tea worth Rs10m near Dera Ghazi Khan
Govt to start crackdown on non-filers from May: Hammad Azhar
MULTAN
ISLAMABAD
www.customstoday.com irectorate of Customs Intelligence and Investigation has seized huge quantity of smuggled foreign black tea worth Rs10 million from Dera Ghazi Khan. Sources told Customs Today that Deputy Collector Khial Muhammad Khan received information from its credible source that huge quantity of non-customs paid black tea will be smuggled through jurisdiction. Deputy Director Khial alerted its staff and formed special team comprised of Inspector Qaswar Shah, Inspector Muhammad Umer, Inspector Zulfiqar and Shakilur Rehman to foil any attempt of smuggling. Customs Intelligence teams enhanced patrolling of different routes of Dera Ghazi Khan to intercept them by deputing staff at entrance of different points for strict vigilance. Field Investigation Unit (FIU) Dera Ghazi Khan intercepted a suspected truck fully loaded with foreign origin black tea which were packed in 110 different sacks near Dera Ghazi Khan. Customs Intelligence recovered 7400 kilogram black tea which was smuggled through Pak-Iran border. Customs Intelligence staff asked the driver to produce documents regarding legal import of the recovered goods.
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Quetta Customs foils bid to smuggle narcotics QUETTA
TARIQ DERYA
www.customstoday.com ollectorate of Customs team foiled a bid to smuggle narcotics and seized 89 kilograms of charas/hashish worth millions of rupees at Yaro Check Post. Sources told Custosm Today that Collector Preventive Iftikhar Ahmad received credible information that few drug smugglers were using cars for smuggling drugs in to the country. He passed directions to Additional Collector Jameel Baloch who further guided Assistant Collector Umair Arshad and all check posts incharges asked to remain vigilant. Subsequently, Assistant collector Umair Arshad along with Customs staff of Yaroo Check Post intercepted a car coming from border area, and recovered 78 kilograms of hashish, 8 kilograms of garda, 3 kilograms of opium. The sources said that Collector Preventive appreciated the Customs staff for seizing a huge quantity of drugs and said that crackdown against drug traffickers and smugglers of non duty paid goods and vehicles will be continued.
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MUHAMMAD FAIZAN www.customstoday.com
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tate Minister for Revenue Hammad Azhar has said that the Pakistan Tehreek-e-Insaf (PTI) government would initiate a crackdown on non-Vilers in May. As per details, Hammad Azhar has tweeted that government has received information about four to five million non-filers in the country. The minister asserted that the tax evaders would have to face action as the department concerned would be checking all non-filers across the country. He said another operation related to fake accounts would also be launched to discourage such trends in the country. The minister said that strict action against the corrupts is in the country’s interest. He claimed that since PTI government took ofVice in August 2018, the government has foregone revenues of Rs 96.6 billion on petroleum products to shield the citizens from rising oil prices. Meanwhile, the Federal Board of Revenue (FBR) has extended the deadline for Viling of income tax returns and statements for the tax year 2018 till April 30. The FBR has urged citizens, who had not yet Viled their returns, to take advantage of this opportunity. The tax collection body has extensive plans to pursue and legally proceed against those persons who are liable to Vile returns but do not Vile it by this extended date. On the other hand, for the Virst time in its history, FBR has crossed the mark of 1,800,000 income tax Vilers for the
tax year 2018-19. The institution is also geared to act against those guilty of not fulVilling their tax obligations. Addressing a balloting ceremony, the minister of state for revenue said, “From 1971 till now, the economy was slow and foreign exchange reserves began to grow for the Virst time in January this year.” “The economy is moving towards stability,” Azhar further said and added that “debts are rapidly decreasing”. “We have not set a dollar rate with the IMF,” the minister
State Minister for Revenue Hammad Azhar of state for revenue asserted. Criticising the previous governments, Azhar said, “Pakistan’s economy was destroyed during the previous terms. Former leaders destroyed Pakistan’s economy during their times and are still determined to do so through their statements.” “They should stand in the witness box and respond to questions,” Azhar continued. Stating that the Pakistan Tehreek-e-Insaf (PTI) government reduced circular debt by 2%, the minister of state for revenue said,
Peshawar Customs impounds goods, vehicles worth Rs230.4m C
PESHAWAR
NADIR KHAN
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ollectorate of Customs, Anti-Smuggling Organization (ASO) seized goods and vehicles worth Rs230.4 million in March 2019. As per the statistics received from the antismuggling division, 46 vehicles worth Rs40.8 million and 17 vehicles worth Rs30.8 million were seized along with 5407 yards cloth of high quality. The organization also seized poppy seeds 802 kilograms and currency of 9923 Euros with arms and ammuni-
— Exclusive Customs Today photo
IMRAN ALI KHAN
Collector Asif Saeed tion of 3902 articles. grains, the anti-smugUnder head of food gling unit confiscated
12390 kilograms worth Rs1938700 along with tea 1224 kilograms and tyres and tube 4011 pieces worth Rs4508500 million. The ASO also thwarted attempt of gold smuggling and seized 7113 kilograms gold worth Rs 340 million while fake cigarettes of 20402 danda also seized during different operations. Likewise electronic goods 8528 items also seized during various operations while Gutka all brand worth Rs 600000 and mobile phones 2536 sets were seized in these operations, with a total value of Rs 11287250.
“We will close the target we have set for circular debt at Rs250 billion.” Regarding the draw for the Federal Board of Revenue’s (FBR) audit of taxpayers, Azhar said, “Quality has been the focus for the audit and we have decided to send very few notices.” “For 2017, 14,000 taxpayers will be audited,” he added. “Last year, 45,000 taxpayers were audited.” Azhar further said that this year 2.2% of income tax cases have been selected for audit as compared to 9.5% cases last year.
Peshawar Customs collects Rs1685m during March ollectorate of Customs collected Rs1298 million against the previous March of Rs1685 million with difference of minus Rs386 million in March 2019. In head of custom duty the Collectorate collected Rs786 million against Rs737 million having difference of minus Rs32.45 million while the difference in percentage was recorded minus 20.51 percent. In head of sale tax the Collectorate collected Rs6402 million against Rs519.42 million having huge difference of minus Rs1190 million with difference of minus 18.59 percent in percentage. In head of federal excise duty on import the Collectorate collected Rs109.95 against the target of Rs24 million having difference of minus Rs74.05 million while the difference in percentage was minus 40.24 percent. —CT Report
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NATIONAL 03
APRIL 09 - APRIL 15, 2019
Customs Court approves remand of suspects in HSD oil smuggling case
KARACHI: The Customs Court sent suspects namely Ismail son of Fateh Gul, Allah Bukhsh son of Ahmed Bukhsh and Nazir Ahmed son of Ali Muhammad to customs preventive department on physical remand, who were allegedly involved in a case of attempting to smuggle non-duty paid 60,000 liters HSD. Investigation officer of customs department produced the above-mentioned suspects before the court and informed that on a credible information, customs officials intercepted Hino truck bearing registration no: JV-0881 and recovered 3400 liters diesel oil
Senate Committee expresses concerns on FATA sales tax issue
Asad Umar defends govt’s economic policy, acknowledges painful impact
ISLAMABAD
CUSTOMS TODAY REPORT www.customstoday.com
ISLAMABAD
CUSTOMS TODAY REPORT www.customstoday.com
enate Standing Committee on States and Frontier Regions has expressed their deep concerns on the imposition of sales tax on those items which are supplying to FATA from inside the country and decided to call the chairman Federal Board of Revenue (FBR) in its next meeting to solve the issue. The meeting was held under the chairmanship of Senator Hidayatullah here at the Parliament House on Friday and was attended among others by Senators Hilal-ur-Rehman, Sajjad Hussain Turi, Shamim Afridi, Najma Hameed, Secretary SAFRON, Member IR Policy Wing, CEO TESCO and officials from State Bank and relevant ministries. The committee discussed in detail the matter of tax exemption to FATA. The committee was told that the SROs 1212 and 1213 relating to sales tax and income tax are not in force now and the tax situation is the same as was applicable before 25th amendment. The committee decided to call chairman FBR, secretary finance and Secretary Law and Justice to next meeting to discuss the matter. Regarding agricultural loans to small farmers from FATA, the committee was told that the total amount of outstanding loans given to people from FATA between 2009 and 2012 is 471 million, out of which only 30 million is agricultural loans. Committee in its meeting has directed the Deputy Commissioners of all seven districts of FATA to complete work on proposed and recommended ADP projects for the year and submit details to the Committee with mention of the agency or parliamentarian who has recommended the project.
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inance Minister Asad Umar addressed a live Question and Answer session on the state of the country’s economy. The session, broadcast live across social media accounts of the ruling Pakistan Tehreek-i-Insaf (PTI), saw the Vinance minister answer the queries of an assortment of journalists. Umar identiVied the primary reasons why the economy is in a bad shape but assured that there will be light at the end of the tunnel. “There are two reasons why were are in this mess. We have a budget deficit, and secondly, our external deficit,” he said. “To resolve this you either need to increase exports or decrease imports. Our immediate action was to cut imports, which slows down the economy. The minister likened the economy to a patient who is going under the knife in the operation theater. “The person is being operated on and it seems that he has been cut open but the fact it that he is being operated on to [rectify fundamental problems].” When asked how the government would come good on its promise to create two millions jobs a year, Umar said: “They say that if the economy does not grow at a seven per cent rate, two million jobs won’t be created. As a rule of thumb that [reasoning] is Vine, but it [job creation] also depends on what our priorities are. “Tourism, SMEs, IT, and housing all are priorities, and all these sec-
tors have the potential of job creation. Some investments create more jobs, some less. There will be growth from year three onward but it would be sustainable and long term. “In September, I went to the PSX and I was asked the same question that when would growth be seen in the economy. I told them that we’d go through a stabilisation period of two years after six months of extreme turbulence. Then there will be growth. And now that we are out of survival zone, the purse strings will be loos-
Finance Minister Asad Umar
ened.” The federal government recently raised the prices for petroleum products by up to 6.45 per cent. When the minister was reminded that during the PML-N government he had suggested that petrol prices should be set at Rs46, he contested the claim “I had never said that petrol should be Rs46. I had said that tax should be lower than it was,” he said. “Tax ratio at the time was 52 per cent, right now it is 30 per cent. Had we kept the same taxes as before than we could have
gathered Rs97bn more from Pakistani public. We have actually lowered the tax ratios.” “Ogra (Oil and Gas Regulatory Authority) does petrol price’s calculations. On April 1, when the new prices were recommended, the only thing the government did was reduce the recommended price by Rs5,” he added. A day earlier, Umar had announced that the government is planning to introduce another amnesty scheme to provide non-Vilers of tax returns an opportunity to whiten their undeclared assets at home and abroad.
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04 NATIONAL
APRIL 09 - APRIL 15, 2019
PTBA seeks extension in return filing date up to April 30
KARACHI: Pakistan Tax Bar Association (PTBA) has requested Federal Board of Revenue (FBR) to extend the last date for filing income tax returns up to April 30, 2019. In a letter to FBR Chairman Dr. Jahanzaib Khan, the tax bar expressed gratitude for accepting the request for extending the date of filing of tax returns for tax year 2018 up to March 31, 2019 as communicated through Circular No. 02, 2019. “This shows the present government’s commitment to facilitate taxpayers and broaden the tax base,” it said.
Pakistan Customs surpasses revenue target, collects Rs510.11b till March Member Customs Jawwad Agha reviews revenue collection measures in Hyderabad
SHC directs to release consignment imported by M/sWali Khan Trading Company KARACHI
M.B RANA
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HYDERABAD
ASLAM ANJUM QURESHI www.customstoday.com
he Sindh High Court (SHC) directed customs officials to release the consignment subject to securing the disputed amount of duty and taxes in the shape of pay order/ bank guarantee on a petition filed by M/s Wali Khan Trading Company seeking release order of its consignment of desiccated coconut stopped by customs officials due to disputed valuation. A two-member bench, headed by Justice Aqeel Ahmed Abbasi also issued pre-admission notices to the customs department and deputy attorney general and directed them to file their para-wise comments on next date of hearing. During the hearing, counsel for the petitioner stated in his petition that petitioner has imported a consignment comprising desiccated coconut per unit value of @$1.15 according with law and requested customs officials to release his consignment. He further argued that petitioner is seriously aggrieved and highly prejudiced by the actions of the respondents in which they denied to accept the declared transaction value of the imported goods and are assessing the duty and taxes on the basis of the Valuation Ruling No 1012/2017 dated 13/01/2017 per unit $2.00, despite the fact that the impugned valuation ruling is not sustainable in the eyes of the law. Citing chairman Federal Board of Revenue, collector of Customs Apprisement West, Director Valuation as respondents, petitioner pleaded the court to declare that act of the respondents is illegal, mala fide and arbitrary. Counsel pleaded the court may declare that non allowing provisional release of consignment is disregard/ disobeying to the orders of this court and direct them to release his consignments immediately and restrain the respondents from any coercive action against the petitioner.
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akistan Customs has surpassed the target by collecting Rs510.11 billion as duty and taxes during July – March 2018-19. According to statement, the target for collection of customs duty for the Virst nine months was Rs509.3 billion. The duty collection from July to March 2018-19 is higher 19.2 percent when compared with Rs482 billion in the corresponding period of the last Viscal year. The customs authorities also collected Rs581.8 billion under the head of sales tax on imported goods during the period. However, the collection was lower when compared with Rs592.6 billion in the same period of the last Viscal year.
The authorities attributed the decline in sales tax on import stage to decrease in quantity and value of petroleum products and measures of the government to regulate import of vehicles in different schemes. Moreover, the customs collected Rs169 billion as withholding income tax on import stage which was 4.6 percent higher than previous year’s collection. Besides, Pakistan Customs also collected Rs9.9. billion from July to March 2018-19 federal excise duty (FED) to the tune of Rs9.9 billion during July – March 2018-19 which was 21.2 percent higher when compared with Rs8.2 billion in the corresponding period of the last Viscal year. Meanwhile, Federal Board of Revenue (FBR) Member Customs (Operations) Dr. Jawwad Uwais Agha visited Customs House along with Chief Collector Customs (Enforcement) Dr ZulViqar Ali Chaudhary to review revenue
— Exclusive Customs Today photo
collection measures. Member Customs held meeting with Hyderabad Customs Collector Khalid Hussain Jamali and his team to review revenue collection and enforcement measures. Dr. Jawwad stressed upon taking measures to enhance revenue collection specially by focusing on court cases and disposal of conViscated goods through auction. Later, Member Customs visited Hyderabad Chamber of Commerce & Industry (HCCI) and held discussion with stakeholders regarding issues faced by importers and traders related to Hyderabad Dry Port and Hyderabad customs. He stressed that importers of Hyderabad Region may come up and start their imports from Hyderabad dry port and all necessary facilitation will be provided to them at their door step. The president Hyderabad Chamber of Commerce and Industry thanked the Member Customs for visiting the chamber while guests planted saplings in Customs House Hyderabad.
Customs Court imposes penalty on accused in currency smuggling case MULTAN
IMRAN ALI KHAN
www.customstoday.com he Special Court of Customs Taxation and Anti-Smuggling imposed a fine of Rs 500,000 on two accused here on Tuesday who were arrested from Multan International Airport in a bid to smuggle foreign currency. The Special Court of Customs Taxation and Anti-Smuggling declared both accused Muhammad Asghar and Muhammad Nawaz as guilty and imposed a cash penalty of Rs 500,000. The court has ordered the culprits to deposit the cash until the closure of the court and the fine was deposited by them. It is pertinent to mention here that Customs staff deputed at Multan International Airport recovered almost 97000 foreign currency of Saudi Riyals, United Arab Emirate dirham and US dollars from passenger Muhammad Asghar and Muhammad Nawaz. They were arrested by Customs staff during routine checking of passengers in arrival lounge at Multan International Airport and recovered foreign currency from pockets of both accused. Both accused were failed to produce any legal justification about recovered foreign currency and they had not declared their foreign currency at Multan International Airport. Both accused were going to Sharjah from Multan through Pakistan Airline PK -293. Customs Investigation and Prosecution had lodged criminal case against them and detained their foreign currency. Accused interim bail applications were rejected on earlier hearings as they were failed to prove their innocence in court after which they submitted written confession in the court and requested leniency in currency smuggling case.
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DG Valuation revises customs values of soft & hard sawn wood vide VR No. 1267/2018 D
KARACHI
CUSTOMS TODAY REPORT www.customstoday.com
irectorate General of Customs Valuation has revised the customs values of soft and hard sawn wood vide Valuation Ruling No: 1267/2018 under Section 25A of the Customs Act1969. According to the details, the Customs values of soft and hard sawn wood were determined vide Valuation Ruling No.917/2016 dated 26.08.2016. As the ruling was old and values in the international market had changed, therefore, an exercise
was initiated to determine the customs values of the aforementioned goods under Section 25A of the Customs Act, 1969. Stakeholders’ participation in determination of Customs values: Stakeholders’ meeting was scheduled on 22.02.2018. The stakeholders were requested to furnish the following documents before or during the course of the meeting: 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,
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 three months showing the difference in price (excluding duty and taxes) to substantiate their contentions on the values. The meeting was attended by different importers. The representatives of KTMG were of the view that prices in the international market has remained the same and only very marginal increased. It was further pointed out by an importer of Diyar Timber that the value of Russian and Afghanistan origins is higher
as against their declared values. Valuation methods given in Section 25 of the Customs Act, 1969, were followed to arrive at customs values of soft and hard swan wood. Transaction value method provided in Section 25 (1) was found inapplicable owing to non-fulVillment of prescribed requirements. Identical / similar goods values methods provided in Section 25(5) & (6) were examined for applicability to the valuation issue in the instant case which provided a number of reference values of subject goods but the same could not he exclusively relied on due to certain variations in declared values of subject goods.
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— Exclusive Customs Today photo
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SPECIALREPORT 07
APRIL 09 - APRIL 15, 2019
LAHORE
NABEELA GHAZANFAR www.customstoday.com
I
nspector General of Punjab Police (IGP) Amjad Javed Saleemi has taken a number of initiatives to further improve the working of Punjab Police. According to details, IGP Amjad Javed Saleemi established “Police Khidmat Marakaz� in all districts across Punjab where citizens can avail 13 different services such as character certiVicate, Tennant Registration, FIR Copy, Renewal of Driving License, etc. In all 36 districts, Khidmat Marakaz are also integrated and linked, so residents of a district can beneVit from these services while living in another district, previously citizens had to travel to the district of their permanent residence to avail any of the above-mentioned services, furthermore in these Khidmat Mrakaz all these facilities are available under one roof. Khidmat Counters are also established in District Headquarter Hospitals and Tehsil Headquarter Hospitals, so that Medico Legal Dockets can be easily issued from here, as these centers are also interlinked and can send and receive information and documents online. IGP Amjad Javed Saleemi is also establishing Alternate Dispute Resolution Committees (ADRC) throughout Punjab for mediating/resolving petty
issues. This initiative will save valuable time and resources of Citizens, Police and Judiciary. These committees will comprise local notables, retired teachers, religious leaders/ulema, and Retired Govt OfVicials, journalists and judges. All members of these committees will bear no political afViliation with any party or group. To further improve service delivery standard at Police Stations, and to improve public dealing skills among police, special training sessions were held in all district police lines across Punjab. 53 Master Trainers imparted the training under supervision of local RPO,s & DPO,s and 2934 ofVicers of Inspector to DSP rank attended theses sessions. So far 273 ofVicials have been promoted, among the promoted ofVicers, 176 Sub-Inspectors promoted to inspectors, 57 Inspectors promoted as DSP and 40 DSP promoted as SP. Punjab police are also introducing a Fast Track Promotion Policy, and it will be implemented in next 3 to 4 months. OfVicials are being posted or transferred according to their choice so that to improve the service delivery and enable them to perform ofVicial duty without any mental or emotional stress. Another initiative of IGP Amjad Javed Saleemi is establishment of Resource Management Centers at all districts across Punjab. At these centers all record of ammunition, uniforms and other equipment is being computerized for efVicient and effective use of the available resources. A special app TAMIS
(TrafVic Accidents Management Information System) has been launched to record the details and nature of accidents. This data will play a vital role in understanding the causes of the road accidents and devising strategies to avoid the loss of precious lives in future. A special committee is constituted, headed by DIG Establishment II Sajjad Hassan Khan Manj to ensure timely dispersal of dues to ofVicials at the time of their retirement. A crackdown against drug peddlers is being carried out across province, especially in the vicinity of educational institutes, Medical Colleges & Universities. Punjab Police is also actively participating in Clean & Green Pakistan Campaign and so far thousands of saplings have been planted by Police ofVicials at Police Stations, Police Lines and other Police ofVices. Identical boards for identiVication of boundaries of each Police Station have been installed. RO plants are being installed at all Police Lines across Punjab to provide clean and safe drinking water to ofVicials. Dispensaries for health care of ofVicials are being established at police lines. All ofVicers/ofVicials are bound to pay special heed to the beautiVication and cleanliness at police stations, lines and other ofVices particularly washrooms of Police Stations, mess and kitchen. To improve the accountability a special Internal Accountability Unit
has been established. SP rank ofVicer will be responsible to address the public complaints as District Complaints ofVicer and will also act as a focal person for IG Complaint cell 8787. To further improve the skills of 10 thousand investigation ofVicers across Punjab latest trainings are started. These training ofVicers will be trained with latest skills to provide timely justice to the public and to support trails in court efViciently. To save public money and time, SHOs will be available in PS for 2 hours and this will also be monitored by CCTV cameras. To provide services to the citizens at their doorsteps, Mobile Van Khidmat Marakaz has started working. A Mobile Khidmat Markaz van is successfully operating in Multan. To prevent mobile phone theft and sale and purchase of such mobile phones Lahore E- Gadget App is introduced, with the help of this app information about the sale, purchase or repair of any stolen mobile will be available to police. In the next phase, this app is also being implemented across Punjab. After registration of the FIR it will be available online so any citizen will download a copy of FIR from anywhere. Preservation and renovation of historic buildings of Punjab Police has been started. In this regard building of old Anarkali Police Station which was built in 1861 has been successfully renovated to its historical glory.
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08 EDITORIAL
APRIL 09 - APRIL 15, 2019
Founder Zulfiqar Ali CEO and Chief Editor Asad Kharal 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
Another Tax Amnesty Scheme
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It is now becoming a monotonous affair. With almost ridiculous regularity, an amnesty scheme is announced year after year, yet the undocumented economy, tax evasion, money laundering and illegal income-generating activities remain in fact, they continue to thrive. Evidence that such schemes bring no benefit to the country is piling up, but for some reason our political class irrespective of the party they belong to keeps going back to them. The best evidence that these schemes bring benefits to a few only lies in the fact that, less than a year after we had one such scheme widely subscribed to, the new government feels compelled to announce another. The full details are still being worked on, but Finance Minister Asad Umar has let it be known that the scheme will allow the whitening of undeclared assets, and that it has been introduced “on the strong demand of the business community�, according to one report. Some suggestions also exist that, unlike the last scheme, this one could be open to participation by bureaucrats and politicians as well. Whatever the details that will eventually emerge, the government must remember the track record of previous such schemes; the fact that another is required today simply means they are ineffectual. What response does the business community give when asked why they did not take the opportunity to whiten their undeclared assets back when they had the chance to do so last year? And perhaps while he’s at it, Mr Umar should also recall the visceral opposition he, together with the rest of the senior PTI leadership, put up to the same scheme when it was introduced last year. He castigated then finance minister Miftah Ismail for not devising the deal in a transparent manner, without input from parliament or the cabinet. It is now imperative he live up to his own standards, and get parliamentary approval for his version of the amnesty, rather than use an ordinance or some other purely executive power to get it through. Most importantly, amnesty schemes that allow the whitening of undeclared assets run completely against the promises made by the PTI to its voters so far. The last scheme had a clause that the proceeds of crime would not be allowed to be whitened through it, and none other than Mr Umar himself publicly mocked this provision, saying it was unenforceable and the government would never know whose assets had been accumulated through criminal proceeds vs simple tax-evaded wealth.
FBR Audit Policy F
LAHORE
CUSTOMS TODAY REPORT www.customstoday.com
ederal Board of Revenue (FBR) is likely to approve the audit policy for year 2017 by (i) applying universal parameters for the general population of taxpayers; and (ii) risk-based sector speciVic parameters for different sectors including educational institutions, construction industry/builders, textiles, sugar, iron and steel and oil and gas exploration companies. This must be fully supported because there is a need for audit within several sectors/sub-sectors, for example, Independent Power Producers (IPPs) routinely claim millions of rupees for idle capacity by maintaining that the government does not have the transmission network to vacate
full capacity. The question however is whether this is a new audit policy and whether FBR has the capacity to undertake this extremely challenging task? The 2017 audit policy approach was introduced in 2016 when FBR claimed that it is a paradigm shift from the past as its focus has been 'realigned from random to parametric selection and from general to a risk-based approach.' FBR further argued at the time that the new approach would 'minimise chances of selection of compliant taxpayers resulting in increased conVidence in the system...will not only promote compliance with the existing tax laws but will also generate increased revenues through better declarations for better public spending by the government. The right audit approach will help FBR in broad-
ening the tax base and in focusing on high risk areas.' These ambitious objectives have clearly not been realised. The Tax Reform Commission (TRC) report identiVied lack of capacity to undertake any meaningful audit in FBR and recommended establishing an independent unit to conduct audit and disturbingly wrote "it is not surprising that an overwhelming number of tax audits are conducted in haste and are perfunctory." To improve effectiveness of the existing audit process, TRC further recommended reorganisation to reduce taxpayer/tax collector interface, provide pre-audit anonymity of auditors, assign and distribute functions and responsibilities in a manner that reduces discretion of assessing ofVicers, promotes one window operation, assign functional responsibilities to specialised divisions, relieve assessing ofVicers
from non-assessment functions, and move to a systematic basis for selection of cases for tax audit. In November last year it was reported that FBR is seriously considering separating audit from FBR and creating a special Audit Division to separately handle audit. However four months later, there has not been any meaningful progress in this regard. Be that as it may, there is no tax intelligence system in place in spite of the establishment of Pakistan Revenue Automation Limited (PRAL), a revenue market wagebased company, to effectively monitor the corporate/business sectors without which effective audit cannot be carried out. To conclude, the need for an effective audit function is considerable and independent economists have calculated generation of an additional 200 to 300 billion rupees per annum if audit is carried out effectively.
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NATIONAL 09
APRIL 09 - APRIL 15, 2019
Customs Court approves remand of suspect in HSD smuggling case
KARACHI: The Customs Court sent suspect namely Bilal son of Amanullah resident of Killi Chaltan to Central Jail on judicial remand, who was arrested in a case of attempting to smuggle non-duty paid 10,000 liters High Speed Diesel. Investigation officer produced the above-mentioned suspect before the court and informed that on credible information, customs officials intercepted Hino flat body truck bearing registration no: TMD-196 (Lasbela) and during the search, they found 10,000 liters HSD from fabricated tank fixed in the container loaded on said truck.
SHC rejects appeals against transfer of fake accounts case to Rawalpindi
Multan Customs collects Rs2741.910 million during March
KARACHI
MULTAN
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he Sindh High Court dismissed all applications seeking the reversal of a banking court’s orders to move the fake accounts case investigation from Karachi to Rawalpindi. Former president Asif Ali Zardari, Faryal Talpur, Abdul Gani Majeed, Anwar Majeed and Hussain Lowai had all appealed against the banking court’s ruling in the SHC. The FIA had named Zardari, Talpur, Omni Group chairman Anwar Majeed, his sons and over 10 others as suspects in an interim charge sheet filed in the banking court in August last year for alleged money laundering to the tune of over Rs4 billion after 29 ‘fake’bank accounts were found opened in three banks Summit Bank, Sindh Bank and United Bank Ltd. A banking court had granted the National Accountability Bureau (NAB) its request to transfer the fake bank accounts case to the accountability court of Rawalpindi for trial. The orders had been given after the Supreme Court which had taken suo motu notice of the case and constituted a JIT to probe the matter referred the matter to NAB to launch its probe independently and complete it within two months. In today’s hearing, the defence submitted their reply to NAB’s reply submitted in the last hearing of the case. Soon after that, the defending lawyer, Farooq H. Naek, gave his concluding arguments and reiterated all the points had had made during previous hearings of the case.“The Supreme Court had only given orders for further investigation in the case,”Naek insisted, arguing there was no reason to shift the case too.
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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
IMRAN ALI KHAN
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ollectorate of Customs collected Rs2741.910 million during the month of March of Fiscal Year 2018-19. According to available statistics, Federal Board of Revenue had assigned huge collection target of Rs4135 million under the heads of customs duty, sales tax, federal excise duty and income tax for the month of March 2019. Multan Customs Collectorate generated Rs1405.109 million under the head of customs duty in the month of March against the assigned revenue task of Rs.1424 million. The Collectorate collected 99 percent assigned revenue task during March. The Collectorate received higher customs duty than the previous months of the Viscal year due to notable performance of the Multan Customs. The Collectorate was able to collect Rs1160.137 million during the corresponding period of March 2018. The Collectorate witnessed growth in collection of customs duty due to their dynamic strategy and on time clearance of the import batches cleared from Multan Dry Port. The Collectorate has collected Rs1276.710 million under the head of sales taxes against the assigned target of Rs2693 million throughout March. The Collectorate achieved only 47% consigned task in March. The Collectorate could not meet the
— Exclusive Customs Today photo
CUSTOMS TODAY REPORT
Collector Ambreen Tarar
revenue collection task of sales taxes due to slight decline in the clearances of HSD consignments and increase in the prices of petroleum products. Multan Customs collected Rs23.926 million against allocated task of Rs8 million under the head of federal excise duty during March 2019. Collectorate of Multan Customs posted growth of 199% by collecting Rs15.926 million in said period of March. It was able to collect Rs7.513 million under the head of federal
excise duty during corresponding period of March 2018. The Collectorate has made revenue collection of Rs.36.160 million against Rs.10 million in wake of income taxes for the duration of March 2019. The Collectorate achieved almost 361% revenue collection under income tax head. The Collectorate effectively collected Rs2741.910 million against the assigned revenue collection target of Rs.4135 million throughout the month of March in the ongoing Viscal year 2018-19. The Collectorate missed the rev-
enue collection task of March due to less import clearances of High Speed Diesel from Multan Dry Port. Meanwhile, Collectorate of Customs collected Rs1469.409 million under the head of Petroleum Development Levy (PDL) during the month of March. According to the details, Multan Customs collected Petroleum Development Levy from oil marketing companies on the clearance of ex-bonding of High Speed Diesel from Multan Dry Port. The Petroleum Development Levy is dutiable on petroleum products according to their proportionate PDL rate imposed by the Oil and Gas Regulatory Authority Ordinance (OGRA). The Collectorate deposited Petroleum Development Levy into the account of the Ministry of Oil and Gas Regulatory Authority after deduction of their import duties and necessary taxes. The Collectorate received 98 percent of its revenue collection through the clearance of High Speed Diesel and other petroleum products from the PARCO oil reVinery located in the Mahmood Kot near Muzaffargarh. The Collectorate collected all taxes from oil marketing companies including customs duty, sales tax, federal excise duty (FED), income tax (IT), additional sales taxes, petroleum development levy from oil marketing companies at the time of ex-bonding clearance from Multan Dry Port. Multan Customs collected Rs1469.409 million from the petroleum development levy during the March of current Vinancial year 2018-19.
Lahore Chamber hails FBR for releasing refunds To,
Jahanzaib Khan, Chairman FBR, Islamabad Dear Sir,
I want to bring in your notice that LCCI hailed Federal board of Revenue (FBR) for accepting its long-standing demand and issued notiVication for payment of refunds up to Rs 50,000 per year for the Vinancial years 2014 to 2018. Stuck-up sales tax and income tax refunds were one of the most serious issues being faced by the trade and industry as they were running short of capital because of which businesses were squeezing. FBR has not only given a big relief to trade and industry by releasing their stuck-up refunds but also
devised an automatic mechanism for payment without any human interaction which had always led to problems. Next target should be the payment of all income tax and sales tax refunds within Rs one million to ensure much-needed growth of the most productive sectors. The delay in release of huge refunds claims that runs into billions were triggering serious liquidity crunch for the trade, exporters and manufacturers. The businessmen were bearing huge Vinancial cost on their own hard earned stuck-up money but now situation would take a good turnaround. Yours sincerely, Almas Haider President LCCI, Lahore
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10 NATIONAL
APRIL 09 - APRIL 15, 2019
FBR establishes DGBTB for taking action against tax evaders
ISLAMABAD: Federal Board of Revenue (FBR) on established a new directorate for taking action against tax evaders. The FBR notified to create Directorate General of Broadening of Tax Base (DGBTB) to bring potential taxpayers into tax net. The new directorate, which was already made part of the statute, will work on the available data of persons and companies those were not into the tax net. The directorate will have powers to identify new taxpayers, issue notice and to initiate legal action.
‘Govt should stop blackmailing of Maersk, QICT to facilitate genuine importers’ MULTAN
IMRAN ALI KHAN
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he government should regulate all shipping companies to stop them from demanding illegal demurrage and detention charges from importers on clearance of shipments. Blackmailing of shipping companies especially M/s Maersk Pakistan (Pvt) Ltd and M/s Qasim International Container terminal (QICT) is portraying negative image of the country. It was stated by Chairman All Pakistan Power Looms Association (APPLA) Abdul Khaliq Qandeel Ansari while talking to Customs Today about blackmailing of above-mentioned shipping companies. He said shipping industry played the crucial role in national economy as all importers and exporters take facility of shipping companies for the clearance of their legal shipments. Power loom industry is also an important segment of the textile industry of the country which avails the clearance facilities of shipping companies, but power loom industry is facing a great crisis which has forced factory owners to shut their looms due to power shortages and increase in the business cost. The production of machine-made garments was a beneVit for local industry and it was assisting textile sector but China and other markets have affected power looms industry. He said that government could not deny the importance of
power looms as “spinning sector” exists with up-to-date technology in the form of medium and large-scale units, adding the “weaving” and value-added sub-sectors are small ones with a technological gap. The non-mill weaving, power loom sector, supplies the majority of the fabric and indirectly exports total fabric production of about 16 billion square meters and 65% of this production comes from the power loom sector. But importers and exporters
of power looms face blackmailing for payment of additional charges for the sake of demurrage and detention charges by M/s Maersk Pakistan (Pvt) Ltd and M/s Qasim International Container terminal (QICT) during import of their raw material and machinery parts. He expressed that collection of illegal demurrage and detention charges by the shipping lines including M/s Maersk Pakistan (Pvt) Ltd and M/s Qasim International Container terminal
(QICT) has increased manufacturing cost of local industrialists. He added that importers of Power Looms and others are suffering heavy losses each day because of delay in release of imported goods due to unnecessary delay in clearance of shipments by M/s Maersk Pakistan (Pvt) Ltd and M/s QICT for illegal collection of detention and demurrage charges. Said shipping company and terminal operator are causing serious business complications for the importers by blackmailing them
for the collection of unfair demurrage and detention charges against the law because Customs has issued detention and demurrage certiVicates to importers for speciVic period but these shipping companies are violating law and regulations by collecting exorbitant charges. According to SRO 1220(I)/ 2015 and important Section 14-A of the Customs Act, 1969, ofVicials cannot charge any demurrage or detention charges after issuance of certiVicate from Customs Department.
OGDCL allegedly awards purchase order to a Chinese company without publishing tender, pre-qualifying companies
A
From page 01
nd, 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 inVluence 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 Departments 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 Vinancials 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 qualiVied 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 inVluence in drilling department once again to get this tender cancelled and also for securing extension to previous tender (tender number 2020). But, 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 inVluence 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 Viscal 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.
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CARTOONSSPECIAL 11
APRIL 09 - APRIL 15, 2019
Sialkot Excise seals 120 luxury bungalows due to tax default
SIALKOT: Excise and Taxation department has announced to seal 120 luxury bungalows due to prolonged non-payment of their luxury taxes here. The officials added that the E&T Department had issued the recovery notices to the owners of these luxury bungalows for the payments of their luxury taxes, but they were still reluctant to pay luxury taxes by using their complete political influence, in this regard. According to the local E&T officials, these luxury bungalows were located in various parts of the local cantonments in Sialkot and Gujranwala here.
Quetta Customs foils bid to smuggle 36,000kg betel nuts worth Rs 11 million QUETTA
TARIQ DERYA
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ollectorate of Customs Preventive Collector Dr. Iftikhar Ahmad appreciated Assistant Collector Akmal Durani for showing outstanding performance against smugglers who tried to smuggle Indian origin betel nuts in passenger buses. Sources told Customs Today that Collector Iftikhar Ahmad received information that under cover of passenger buses huge quantity of foreign origin betel nuts will be smuggled through Kolpur Customs check post. The customs staff enhanced vigilance on Kolpur check post and continued checking of every bus while during checking the staff intercepted a bus and recovered huge quantity of betel nuts while no one claimed the ownership of these contraband goods. The total value of seized betel nuts is Rs11 million. Assistant collector told “we raided these passenger buses due to their use in illegal smug-
gling of foreign goods and we would further enhance our teams efficiency to curb such
kind of illegal activities’. He added that such kind of activities would not be tolerated at
any cost. He said that Collector and Additional Collector Preventive appreciated this effort of
FBR assigns revenue collection task of Rs3858m to Multan Customs for April
Ghulam Hussain Khoso Inspector Kolpur, Inspector Asghar Khan and Zahir Shah.
Customs ASO impounds smuggled HSD , gutka in separate raids KARACHI
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IMRAN ALI KHAN
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he Federal Board of Revenue (FBR) assigned revenue collection task of Rs3858 million to Multan Customs for the month of April in the ongoing Viscal year 2018-19. According to details, Federal Board of Revenue assigned monthly collection
task to the Collectorate. The task is allocated under the head of customs duty, sales taxes, federal excise duty (FED) and withholding taxes (WHT) for the ongoing month of April 2019. Multan Customs Collectorate has been assigned customs duty revenue collection target of Rs.1220 million for month of April. The Collectorate is given Rs2583 million target for the collection of sales tax for the duration
of April. The Federal Board of Revenue has given collection task of Rs28 million under the head of federal excise duty (FED) for the month of April. Multan Customs set withholding tax (WHT) task of Rs27 million for the period of Aril 2019. The Federal Board of Revenue (FBR) assigned revenue collection task of Rs3858 million for the month of April in the ongoing Viscal year 2018-19.
ustoms Preventive Anti-Smuggling Organization (ASO) in different raids apprehended Iranian origin High Speed Diesel (HSD) and several kilograms of Indian gutkta. According to the details, the staff of Customs Preventive Anti Smuggling Organization (ASO) deputed at the RCD highway during checking intercepted a water tanker and inquired the driver against the legal documents which failed to provide. The ASO staff conducted complete search of the said water tanker in which 80,000 liters of smuggled Iranian origin High Speed Diesel (HSD) was recovered which worth Rs. 720,000 in the market, Water tanker worth Rs. 2,500,000/- was also taken into the custody. On the other hand Customs Preventive ASO during patrolling intercepted a Suzuki pick up near Jama Cloth Market, Saddar and seized smuggled Indian Gutka weighting four hundred and five kilograms which worth Rs4,700,323/- and along with conveyance worth Rs2,50,000/-. Total tentative value of seized smuggled goods is to the tune of Rs4,700,323/-.
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12
APRIL 09 - APRIL 15, 2019
Faisalabad I&I impounds non duty paid Toyota Passo car
FAISALABAD: Directorate of Customs Intelligence and Investigation (I&I) team impounded a used Toyota Passo car during a special road checking. Sources told Customs Today that Director Syed Asad Rizvi after receiving information regarding non duty paid vehicles constituted a party comprising Superintendent, Muhammad Tahir Iqbal, Intelligence Officer Muhammad Irshad, Saeed Hayat, Muhammad Sikander and Haider Ali conducted operation. The intelligence team intercepted the car bearing registration no: LEF-14-9216 model 2004 near Sargodha Road.
ISLAMABAD
ASAD KHARAl
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he Federal Investigation Agency (FIA) launched a crackdown on ‘Hawala’ and ‘Hundi’ operators in Quetta and arrested three suspects involved in money laundering. On directives of DG FIA Bashir Ahmed Memon, FIA Banking Circle Quetta Assistant Director Shafiqur Rehman Shahwai and SHO Arif Baloch conducted the raid at Chobar Mill Road office of two suspects, Ashraf Ali and Habibur Rahman, who made transactions worth Rs Rs7.9bn in eight bank accounts. FIA Balochistan Director Altaf Hussain told journalists that the agency had detected transactions worth Rs7.9bn transactions in eight bank accounts of two suspects. He said that two suspects, Ashraf Ali and Habibur Rahman made transactions worth Rs Rs7.9bn undercover of fresh and dry fruit business in eight accounts. The FIA ofVicial said that the agency conducted raid at an ofVice located at Chobar Mill Road and seized cheque books, bank slips and other documents,
freezing bank accounts of accused with Rs 2.70 crores amount being used for money laundering. The ofVicial said that the agency registered cases and initiated investigations against the suspects. He said that in another raid, a suspect, Ghulam Muhammad, involved in illegal ‘Hawala’ and ‘Hundi’ business was arrested in Quetta.
On directives of DG FIA Bashir Ahmed Memon, FIA Banking Circle Quetta AD Shafiqur Rehman Shahwai and SHO Arif Baloch conducted the raid at Chobar Mill Road & arrested two suspects Ashraf Ali and Habibur Rahman
Earlier, the Federal Investigation Agency (FIA) on March 28, had arrested four people involved in transactions through illegal Hawala and Hundi method. The FIA had arrested the accused in Multan and they were identiVied as Saleem Nawaz, Ajmal, Sarfraz and Abdul Rehman. According to FIA, foreign currency notes and transaction record had been recovered from arrested suspects. Meanwhile, Federal Investigation Agency (FIA) recently conducted a raid in Karachi’s Manghopir area and apprehended a suspect involved in fund transfers through illegal channels. According to FIA, on a tip-off, a FIA team carried out a targeted raid in Karachi’s Manghopir area and detained accused involved in fund transfers abroad through illegal channels. The team also recovered devices, checks, receipts of Rs 12.5 million from his possession. According to FIA, the suspect was also involved in smuggling of foreign currency. A case was registered against the arrested accused and started further investigation. Earlier, Prime Minister Imran Khan directed the Federal Investigation Agency (FIA) to conduct an immediate crackdown against hundi and hawala operators (illegal channels of fund transfers).
‘Shipping Ministry should take action against Maersk, QICT for collecting of illegal demurrage, detention charges’ M MULTAN
IMRAN ALI KHAN
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inistry of Port and Shipping should take action against M/s Maersk Pakistan Pvt Ltd and M/s Qasim International Container Terminal (QICT) for collection of illegal demurrage and detention charges on clearance of import shipments. This was stated by Vice President Pakistan Helpers Business Council Chaudhary Muhammad Niaz while talking to Customs Today here the other day. He said that business commu-
nity has deep concern over sheer blackmailing of importers through collection of illegal demurrage and detention charges by Maersk Pakistan and QICT. He said that Pakistan Helpers Business Council was receiving complaints from importers against Maersk and QICT for collecting unjustiVied demurrage and detention charges through blackmailing. He said that several importers and their clearing agents have raised issue of illegal demurrage and detention charges but the government has not yet taken any serious action against these companies. Importers have raised
this issue at different business forums but Port and Shipping Ministry did not give any attention towards illegal demurrage and detention charges issue. He said that majority of genuine importers are compelled to pay additional charges for the swift handling of import shipments to Maersk Pakistan and QICT, and if genuine importers refuse to pay illegal charges then they may face unnecessary delay in the clearance of import shipments. These undue charges from shipping companies like Maersk and QICT will increase their cost of business. He said business community is
already facing uncertain economic situation in the country due to devaluation of rupee and other issues. Government is doing its full efforts to catch the attention of foreign investors in the country and it is not possible without eliminating irregularities of shipping companies. Maersk and Qasim International Container Terminal are portraying negative image of country by collecting illegal demurrage and detention charges from importers and it will also put negative impact on government efforts to bring foreign investors in the country. He said that shipping companies are creating hindrance for swift
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clearance of genuine shipments at the port and they are extorting importers for generation of their kickbacks by collecting illegal demurrage and detention charges. Government should take action against Maersk Pakistan and QICT for charging illegal demurrage and detention charges and this malpractice should be stopped to protect importers. He demanded a strict action against Maersk and QICT for charging illegal demurrage and detention charges from genuine importers and the government should recover this amount from these companies and refund it to importers and business community.