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PAKISTAN’S FIRST INDEPTH NEWSPAPER ON CUSTOMS
26 ABC Certified Vol 75 Issue No. 25
Karachi, Tue Feb 12 - Mon Feb 18, 2019
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Regd. No, MC-1381
Price Rs. 50.00
ACHIEVING TARGET
IMPLEMENTING LAW
LAHORE
M.IMRAN MEHAR www.customstoday.com
P FBR Member Hamid Attiq Sarwar says benami law to become operational in a week. | SEE PAGE 02 | SURPASSING TARGET
Multan Customs collected revenue of Rs4410.423m against the assigned task of Rs4113m. | SEE PAGE 03 | DIRECTING ACTION
Collector Seema Raza directed stern action against tax evaders and possessors of NDP vehicles. | SEE PAGE 04 |
resident of Jinnah Lawyers Association Imran Bhutta has announced to Pile a petition in the Lahore High Court against ‘illegal’ alleged appointment of Indian citizens at Qasim International Containers Terminal (QICT) Karachi. While talking to Customs Today, senior lawyer Lahore High Court and president (JLA) Imran Bhutta who is also a foreign qualiPied legal expert, said that Indians are allegedly working unlawfully at Qasim International Container Terminal (QICT) without the issuance of No Objection CertiPicate (NOC) by the Ministry of Interior (MOI) which might be a national security risk. He said that he will move the court against their presence at such a sensitive place of Pakistan. He said that law enforcement agencies must hold the license of M/s QICT due to its operations without clearance of MOI. He said DP World Group owned almost 75% shares of M/s QICT and appointed Indian ofPicials at key posts at DP World Karachi who are operating Pakistan strategic ports, posing threat to national security of Pakistan. Talking with Customs Today, Imran Bhutta expressed shock at the presence of Indians working at key posts at the QICT. Indian involvement could also be seen in increasing irregularities at the QICT where importers based in Pakistan got frustrated due to demands of extra demurrage & detention charges, the advocate added. He further said that the Interior Ministry should immediately start probe against the presence of Indian ofPicials at QICT in any shape in order to safeguard the national economy &
security. He said in order to secure national security, the government should ensure proper clearance by Ministry of Information because these Indian nationals could get information like in and out movement at the port which could be made possible only if people like Rizwan Sultanali Soomar, chairman and director of M/s DP World Karachi and Devang Mankodi a Director at DP World Karachi, are allowed to control Pakistani ports. Reportedly, some directors of holding company of QICT Pakistan Limited are Indians who have been handling Indian Ports in the past like Rizwan Sultanali Soomar who is an Indian national and now Chairman & Director of M/s DP World Karachi has been head of APM Terminals investments in India, also served as Director of Gujrat Pipavav Port Limited, India and also served as Managing Director of Maersk Line India & Sri Lanka. Also Devang Mankodi, an Indian national, is Director of DP World Karachi and he has served as Director of Nhava Sheva International Container Terminal India and also worked in Logistics Company in India. This implies that QICT Port of Pakistan is controlled by Indians. Ports are highly sensitive and strategic assets of Pakistan which cannot be given in the hands of nationals of hostile countries. Illegal appointment of Indians at Pakistan’s strategic sea port Qasim International Containers Terminal (QICT) without the Ministry of Interior’s (MOI) clearance could pose security threat to the country. Indians are spying on the QICT as it is controlled by M/s DP World Group and, many of the management staff and directors of board are Indian nationals. Through such a discreet control of the QICT, Indians could achieve their alleged nefarious activities to destroy peace and stability in Pakistan.
— Exclusive Customs Today photo
Hammad Azhar says FBR will achieve tax revenue target of Rs 5400 billion for FY 2018-19. | SEE PAGE 06 |
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FEBRUARY 12 - FEBRUARY 18, 2019
SHC directs to restore ID of M/s Moosmi Impex
KARACHI: The Sindh High Court directed customs officials that the request of the petitioner for de-blocking of the user ID and to process the goods declaration of the petitioner shall be considered in accordance with law and compliance report may be submitted on next date of hearing on a petition filed by Muhammad Arsalan Moosmi, proprietor of M/s Moosmi Impex seeking restoration of his NTN blocked by customs officials due to alleged tax evasion matter.
Quetta Customs seizes huge quantity of narcotics worth Rs6.50 million
Benami law likely to become operational soon: Hamid Attiq
QUETTA
ISLAMABAD
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ollectorate of Customs team seized huge quantity of hashish and bottles of fine quality wine worth Rs6.50 million including vehicle being used for smuggling. Sources told Customs Today that Director I&I Muhammad Akram Chaudhary received secret information that some smugglers are trying to smuggle huge quantity of hashish and bottles of wines in secret parts of trucks which was heading from Quetta to Karachi. After receiving this information, he constituted a raiding team under the supervision of Customs Preventive Inspector Nasir Jamal and others. The team, during a search operation on Highway intercepted a vehicle bearing registration no: BDH-8472. During the search, the team impounded more than 10 kilogram of hashish packed in 1 kilogram packing, and 300 international bottles of wines worth Rs6.50 million including truck being used in smuggling.
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FBR decides to induct doctors of twin cities in tax net ISLAMABAD
SHAHID MINHAS
www.customstoday.com ederal Board of Revenue (FBR) has started probing the assets of doctors who are residents of Islamabad and Rawalpindi and decided to induct them in the tax net. Official sources told Customs Today that Directorate General Intelligence and Investigation Inland Revenue wing of FBR has issued notices to medical superintendents, chief executive officers, principals, senior doctors, professors and surgeons working in 15 big hospitals of the twin cities.The Directorate General IntellIntelligencenvestigation IR in its notices directed the respondents to provide the detailed list of doctors working in their hospitals or under their supervisions with the information having CNICs numbers, designations and NTN, sources confirmed. Sources also told that Directorate General Intelligence and Investigation Inland Revenue wing of FBR also directed the respondents to provide these details within 15 days while if they are failed to provide such details required by theWing, the authority has the power to take stern action under the rules and regulations of Federal Board of Revenue, sources added.
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MUHAMMAD FAIZAN www.customstoday.com
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ederal Board of Revenue (FBR) Member Tax Policy, Hamid Attiq Sarwar has said that benami law is likely to become operational during current week, allowing the government to take strict actions against the real owners of benami asset holders and conPiscate the benami properties in the favor of government. Addressing a press briePing with Member Inland Revenue Operations Seema Shakil, Hamid Ateeq said that this was a very harsh law under which the government would conPiscate all properties and bank accounts that would not be registered with the name of real owner. He informed that the benami act was passed in January 2017 and now after Pinalizing of its rules and regulations, the law would become operational by February 7-8. He said this law would act hard on those who registered their properties, bank accounts or vehicles on other benePiciaries’ name in order to evade taxes. BriePing the media about revenue collection, Member Inland Revenue Operations, Seema Shakil said that during the period July-January 2018-19, the FBR collected Rs2,060.757 billion against Rs1995.277 billion collected during same period of last year, showing an increase of around 3 percent. She said that there was a shortfall in revenue collection mainly due to relief in tax measures while contraction of Federal Public Sector Development Programme (PSDP)
— Exclusive Customs Today photo
WAQAR AHMED ANSARI
also negatively impacted the revenue collection. She said the Federal Board of Revenue was expecting a revenue shortfall of Rs350 billion by the end of June 2019 against the target of Rs4398 billion set by the government for year 2018-19. She informed that during the period under review, total domestic revenue stood at Rs1,057.651 billion against Rs 1,050.455 billion collected during Pirst seven months of the year 2017-18. Similarly, total revenue collection on imports stood at Rs 1,003.105 billion during July-January (201819) against Rs 944.822 billion collected during same period of the
preceding year. Total income tax also increased to Rs 755.075 billion from Rs 754.902 billion, while net Sales Tax increased to Rs 798.832 billion in July-January (2018-19) from Rs 805.163 billion in same period of last year while Customs duty increased from Rs 330. 217 billion to Rs 389.456 billion, she added. To a question, Hamid Ateeq said tax relief announced by the government recently would help increase in revenue in the long term. “The government had two options whether to raise taxes immediately or to give tax relief in a bid to strengthen economic growth in the country”, he added. He said if the
Collector Preventive Faiz Ahmad transfers ten customs inspectors C
LAHORE
M.HAYAT
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ollectorate of Customs Preventive Collector Faiz Ahmad issued orders to transfer ten customs inspectors with effect from 7.2.2019. According to notiPication no: C.No. 01-HRD/Estt/82/201617/117: Inspector Muhammad Sadaqtum Nazir Ali transferred from Airport (TrafPic) to AFU/BG, Inspector Malik Shahnawaz Langrial transferred from LFU to Railway Station T-10, Inspector Akbar Hussain is transferred from Railway Station T-10 to Airport (TrafPic), Inspector Tariq Baig is transferred from Airport (TrafPic) Air Freight Unit Allama Iqbal International Airport. Inspector Syed Shahid Abbas Shah is transferred from Air Freight
Unit to Anti-Smuggling Organization (ASO), Inspector Masood Kamal Siddiqui is transferred from Air Freight Unit to Railway Station T-10, Inspector Muhammad Irfan Ahmad is transferred from Railway Station T-10 to Airport (TrafPic), Inspector Muhammad Ashfaq Baig is transferred from headquarters to AFU, Inspector Mirza Mazhar Masood Baig is transferred from Land Freight Unit Wagha to Air Freight Unit, Inspector Shahid Khan is transferred from General Post OfPice (GPO) to Anti-Smuggling Organization (ASO). Meanwhile, Collectorate of Customs Preventive Assistant Collector Muhammad Omer Latif issued a notiPication for posting and transfers of sepoys and drivers with immediate effect and until further orders. According to notiPication no:
01-HRD/Estt/82/2016-17/118: Havaldar Muhammad Boota posted at headquarters is transferred to Airport (TrafPic), Sepoy Tariq Khan transferred from GPO to Airport (TrafPic), Sepoy Bashiruddin transferred from Airport (TrafPic) to AntiSmuggling Organization (ASO), Sepoy Malik Naseer Ahmed transferred from Airport (TrafPic) to ASO and Sepoy Muhammad Aslam transferred from Air Freight Unit (AFU) to T-10. Sepoy Ali Haider currently posted at ASO is transferred to Airport (TrafPic), Sepoy Nadeem Akhtar transferred from Airport (TrafPic) to ASO, Sepoy Yaseen transferred from Land Freight Unit (LFU) to ASO, Sepoy Rehman Khan Lodhi transferred from ASO to headquarters, Sepoy Malik Muhammad Hayat transferred from ASO to AFU.
government had opted raising taxes, although it would help increasing revenue for short time but due to this move, the government would have lost conPidence among business community and common people ultimately damaging the economy in long term. On the other hand, he said the relief measures might have some short term negative impact on revenue collection, but it would help increase level of trust among the people and the business community on the government. To another query, he said the only solution to resolve the matter of overlapping of taxes among provinces and between provinces and federation, was establishment of a single tax authority.
Court accepts interim charge sheet of HSD smuggling case he Customs Court accepted interim charge sheet against suspects namely Gulzaib son of Muhammad Ishaq and Shafaqat Khan son of Gul Sanober, who are involved in a case of attempting to smuggle non-duty paid 13052 liters HSD. Investigation officer of customs preventive submitted interim charge sheet and informed the court that customs official intercepted ISUZU oil tanker bearing registration no: CI-2295 which was carrying smuggled diesel in the garb of HASCOL products. He submitted that suspects were asked to produce lawful documents of smuggled 13052 liters diesel, however, they failed to produce any lawful documents, therefore, they were arrested and goods were seized along with truck. —CT Report
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NATIONAL 03
FEBRUARY 12 - FEBRUARY 18, 2019
Customs Court approves bail of suspects in contraband goods smuggling
KARACHI: The Customs Court granted bail to suspects namely Juma Gul son of Abdullah and Noor Ahmed son of Gul Muhammad, who were involved in a case of attempting to smuggle 5000 kilograms betel nuts worth Rs1,400,000. Counsel for the accused moved bail petitions and argued that their clients are innocents and are falsely implicated in this case, therefore, court may grant them bail till final judgment in this case. After the hearing, court granted their bail against the surety of Rs100,00 and directed them to appear on next date of hearing before the court.
Faisalabad I&I earns Rs3.9m through auction of NDP vehicles & goods
Multan Customs collects Rs4410.423 million in January
FAISALABAD
NAEEM SHEIKH
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MULTAN
IMRAN ALI KHAN
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he Customs Collectorate collected revenue of Rs4410.423 million throughout the month of January 2018-19. According to the details, Multan Customs was assigned revenue task of Rs4113million under the heads of customs duty, sales tax, federal excise duty and income tax during January 2018-19. Multan Customs Collectorate has collected Rs1673.59 million against Rs1297 million under the head of customs duty during July 2018-19. Multan Customs posted 29 % growths in the revenue collection of customs duty for the duration of January. Multan Customs collected revenue of Rs1054.150 million against the allocated collection target of Rs633.36million under the head of customs duty during the corresponding period of January 2017-18. The Collectorate of Customs collected Rs2689.633 million against assigned revenue task of Rs2780 in wake of sales tax during January 2018-19. It collected 98% under sales tax during January. Sales tax collection has been improved during January due to its active contribution in the clearance of import shipments at the Multan Dry Port. Import clearance of High Speed Diesel was boosted due to increase in demand from Multan Customs Collectorate in January 2018-19. On the other hand Multan Customs generated almost Rs2417.365million in terms of sales tax against the revenue
— Exclusive Customs Today photo
irectorate of Customs Intelligence and Investigation (I&I) auction committee conducted auction of non-duty paid vehicles and other smuggled goods after the permission of Federal Board of Revenue (FBR) and generated revenue of Rs3.9 million through auction process during the month of January. Deputy Director Irfan Shoukat told Customs Today that during different anti-smuggling operations, the Customs I&I seized smuggled items from GT Road, MI, M2, M3, Faisalabad, Sargodha and Sumandri and shifted the same to the State Warehouse. Customs I&I registered the cases of seized goods and referred these cases to the customs adjudication department for proceeding. After the conclusion of proceeding of the cases the adjudication authority announced the judgment in favor of the Customs Intelligence and Investigation Faisalabad. Deputy Director Irfan Shouqat said that various parties participated in the bid of auction but only four parties offered attracted prices while foreign origin black Indian tea were sold in Rs1,26,500 foreign origin tyres worth Rs1,43,000 Hino Ranger truck 35,86,000 and others different items worth Rs47300. The auction was held at the Customs Intelligence and Investigation office Amin Town Canal Road Faisalabad. Deputy Director Irfan Shouqat supervised the auction process. He said the auction will strengthen revenue generation measures of the directorate.
target of Rs1449.91million for the corresponding period of January 2017-18. Increase in the proportion of sales taxes by the government has also Pinely tuned the revenue generation during January. Multan Customs has collected revenue of Rs.18.724 million against Rs.8 million under the head of Federal Excise Duty in January 2018-19. It collected almost 234 % revenue than assign task of Federal Excise Duty during said period. The Collectorate was able to collect federal excise duty of Rs7.395 million against Rs8.06 million in the corresponding period 2017-18. The Collectorate collected
Collector Ambreen Tarar
Rs28.537 million against Rs28 million in wake of income taxes during month of January in ongoing Piscal year 2018-19. The Collectorate collected almost 102 % revenue for the Pirst month of third quarter of current economic year 2018-19. While Multan Customs collected Rs7.649million against Rs.8.06 million under the head of Federal Excise Duty in corresponding Piscal year of January. Multan Customs Collectorate has also collected Rs0.881 million under the head of Additional Sales taxes during January. The Collectorate has successfully accomplished all assigned revenue tasks due to effec-
tive strategy of Collector Ambreen Ahmad Tarar during January. Meanhwile, The Federal Board of Revenue (FBR) has assigned Rs3146.69 million revenue collection task for the month of February 201819 to the Collectorate. According to the details, Multan Collectorate assigned monthly revenue collection target for the second month of the third quarter of the current Piscal year 2018-19. The Collectorate has been allocated different revenue collection tasks under the head of customs duty (CD), sales taxes (ST), federal excise duty (FED) and withholding tax (WHT) for the on-going month February of 2018-19.
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FEBRUARY 12 - FEBRUARY 18, 2019
Customs Court directs to arrest absconding suspect in tax evasion case
KARACHI: The Customs Court directed investigation officer of customs department to arrest absconding suspect Muhammad Ayub Khan and produce him before the court who is involved in a case of attempting to tax fraud by mis-declaration in registration particulars, incorrect filing of sales tax returns, importing and supplying of finished taxable goods, misuse of manufacturing status to import fabric without payment of sales tax. Investigation officer submitted that the above-mentioned suspect is still absconder and prosecution is trying its best for his arrest.
Islamabad ASO records six seizure cases in a single day
Multan Adjudication issues ONO against M/s Dastagir Enterprises MULTAN
IMRAN ALI KHAN
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ISLAMABAD
TARIQ DERYA
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SHC seeks reply on petition filed by Directorate of IRP Enforcement South KARACHI
M.B RANA
www.customstoday.com he Sindh High Court (SHC) directed customs officials and related departments to file comprehensive para-wise comments on a constitutional petition filed by Directorate of Intellectual Property Rights (IRP) Enforcement South seeking stay order for not releasing consignment of counterfeit empty plastic shampoo bottles and caps of well-known registered trademarks Sunsilk, Pantene, Dove and Head & Shoulders. While hearing the petition, a two-member bench, headed by Justice Aqeel Ahmed Abbasi also issued notices to them for next date of hearing. Counsel for the petitioner stated in his constitutional petition that M/s AlSyed Electronics imported counterfeit empty plastic shampoo bottles and caps of well-known registered trademarks“Sunsilk”“Pantene”“Dove”and “Head & Shoulders”dated 22/05/2018. Bottles and caps have been imported along with matching stickers showing registered trademarks, copyrighted artwork and corporate marketing details of M/s Unilever Pakistan and M/s Procter and Gamble Pakistan. He submitted that the appellant received intellectual property rights (IRP) enforcement action in terms of rule 680 (1) from the attorneys of M/s Unilever Pakistan and M/s Procter & Gamble Pakistan against counterfeit goods of M/s Al-Syed Electronics. Counsel further argued that notices were issued to M/s Al-Syed Electronics and confronted with the claim of rights holders who failed to justify his import, therefore, imported goods were seized and matter was sent for adjudication, on seizing of goods M/s Al-Syed Electronics moved appeal which was allowed vide order-in-appeal no 1692/2018 un utter disregard to the facts and circumstances of the case.
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— Exclusive Customs Today photo
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ollectorate of Customs Deputy Collector Wajid Zaman said that customs ASO formed six seizure cases of smuggled goods and non-duty paid vehicles worth Rs6.9 million in a single day. Talking with Customs Today, he said that Collector Seema Raza directed stern action against tax evaders and possessors of NDP vehicles. He said that on 2nd February, the ASO staff impounded two mini Mazda trucks fully loaded with Indian origin fresh fruits worth Rs2.5 million. He added that during same day ASO seized non-duty paid Honda Swift car worth Rs1.5 million as well as seized foreign origin ball bearings worth Rs0.6 million. It also seized foreign origin cosmetics from a passenger bus worth Rs1.5 million. The ASO also seized chemicals and auto parts worth Rs0.8 million. He said that during Pirst seven months of Fiscal Year 2018-19 the ASO showed outstanding performance and seized huge quantity of smuggled goods as well as NDP vehicles. Meanwhile, The Anti-Smuggling-Organization (ASO) seized smuggled goods and vehicles worth Rs326 million from July to January of current Fiscal Year 2018-19. Sources told Customs Today that during Pirst seven months of Fiscal Year 2018-19, the ASO seized goods and vehicles worth Rs415 million while it seized goods and vehicles worth Rs 89 million during the corresponding period of last year.
Collector Seema Raza Bukhari
The sources told that ASO Islamabad seized 35 non duty paid vehicles and 50 offending vehicles (carrying smuggled goods) worth Rs254 million in Pirst 07 months FY18-19 while it seized six NDP vehicles and eight offending vehicles worth Rs60 million during same period of last year. The sources informed that ASO seized huge quantity of foreign
ollector Customs Adjudication issued Order-in-Original against M/s Dastagir Enterprises by imposing Rs150, 000 penalties and directed the Collectorate to recover duty taxes on unconsumed goods. Sources told Customs Today that M/s Dastagir Enterprises was granted Export Oriented Unit (EOU) licensing no: 01/2009-EOU under SRO 237(I)/2008 on dated 29/03/2008 for import of fabric for export manufacturing. M/s Dastagir Enterprises initially given license up to 30/06/2010 and later it was renewed up to 30/06/2015. During the above said period, M/s Dastagir Enterprises imported burn-out fabrics, embroidery machinery, chiffon fabrics, laces, beads, elastic, thread, zipper, parts of machinery, ladies suiting fabrics, scarves and other items for export of garments. It was also observed that according to taxpayer online verification, M/s Dastagir Enterprises was blacklisted from 24/02/2002 and their sales tax registration was suspended and they attained export oriented unit license illegally. According to Rule 3 of SRO 327(I)/2008, sales tax registration is one of the mandatory with other requirements for obtaining EOU license. In the absence of sales tax registration, the license was not authorized to import goods availing benefits under SRO 327(I)/2008. M/s Dastagir Enterprises continued importing raw materials and machinery despite the fact that their sales tax registration was suspended in the start and the company was blacklisted. During hearing in Customs Adjudication M/s Dastagir Enterprises provided substantial evidence that section 21(4) explains a registered person engaged in issuing fake or flying invoices.
origin smuggled goods including smuggled cloth, Indian origin food grains, tea, tyres and tubes, Alloy rims, mobil oil, foreign origin fake cigarettes, electronic goods, medicine, Indian Gutka along with miscellaneous goods worth Rs161 million during Pirst 07 months of FY18-19 while it seized same miscellaneous smuggled goods worth of Rs29 million during same period of last FY.
NAB Court summons witnesses against former chairmen KPT in illegal appointment case N
KARACHI
CUSTOMS TODAY REPORT www.customstoday.com
ational Accountability Bureau (NAB) Court directed NAB authorities to produce witnesses and come after full preparation to present arguments against suspects Muhammad Javed Hanif, Rauf Akhtar Farooqi, former chairmen of Karachi Port Trust (KPT) and others, who are involved in a case of corruption and abuse of authority for illegally appointing 940 employees in KPT. Above-mentioned suspects were produced before the court and Sai-
fullah Khan, Deputy Sectary Ports and Shipping also appeared as prosecution witness, however, NAB prosecutor sought time for preparation, therefore, court granted time and
directed him to come with full preparation on next date of hearing. According to the NAB ofPicials, Javed Hanif is involved in charges of corruption and abuse of authority
for illegally appointing 940 employees in KPT in connivance with MQM London’s Babar Ghauri, the then minister for ports and shipping. The appointments were made in violation of KPT law, rules and regulations “without advertisement of vacancies, competitive process, age criteria, and medical examination of appointees and in violation of basic formalities”. A large number of those appointed had a criminal record in serious cases such as “terrorism, premeditated murder and robbery” and that the illegal appointments resulted in losses to the national exchequer to the tune of Rs2.8 billion, the NAB ofPicials added.
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SPECIALREPORT
ISLAMABAD
MUHAMMAD FAIZAN www.customstoday.com
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inister of State for Revenue Hammad Azhar hoped that Federal Board of Revenue (FBR) will achieve the tax revenue targets of Rs 5400 billion set for Fiscal Year 2018-19. At least Rs 1946 billion were Pixed for paying interest on loans. Talking with Customs Today, he said the circular debt rose from Rs400 billion to Rs1400 billion during tenure of last government, and losses of public sector enterprises increased threefold to Rs 1200 billion. The minister said the government had to retire $9 billion of Paris debt and state gas companies’ losses of Rs157 billion. He said the economy inherited by the government was not that of Sweden or Switzerland as the current account dePicit and budget dePicits were extremely high. The PML-N government should not have presented the 6th budget, because in that budget the revenue was overstated and expenditure was understated. Hammad said since 1971, the last ten years tenure was a period of lowest growth and highest debt as the debt grew from Rs6000 billion to Rs26000 billion while the current account dePicit rose from 2.5 percent to 7, 12 and 19 percent and the imports grew by 26 percent. He said the devaluation of rupee against the dollar increased loans by Rs1,333 billion, while similarly due to a devaluation of the dollar during the last year of PMLN government, the debt hiked by Rs1100 billion. He
— Exclusive Customs Today photo
FEBRUARY 12 - FEBRUARY 18, 2019
said during the present government’s tenure, loans increased by Rs2.3 trillion but still the external and net borrowing was less than the previous year. Muhammad Hammad Azhar directed the Federal Board of Revenue (FBR) to focus on the simpliPication of tax collection system and frame new laws in this regard. He said, “We will seek a special tax relief from the Parliament for the small retailers.” The minister said that no favour will be given in the recovery of the taxes. Holding PML-N government responsible for low tax collection, the minister said the past government left shortfall of Rs 260bn for them. The minister said that the number of taxpayers in the country have increased by 30 per cent during a year, adding that so far 1,400,000 taxpayers have Piled their tax returns. Promotion of industry, agriculture and Small and Medium Enterprises is the top priority of the PTI government. He said wrong and ill-conceived policies of the past governments have jeopardized the vibrant and main export industry of textile, which subsequently ruined the country's overall economy. The incumbent government has reduced the duties on textile inputs, besides bringing its gas and electricity tariffs to regional averages to make it competitive. He said the government is working on National Agriculture Policy with placing the cotton crop atop. Efforts are afoot to launch an online mechanism this year for tax refunding, as the government does not want to use the industrialists' tax refunds as tool for its liquidity. The Minister said the government is also going to launch Five-year Tariff Policy and Five-year Tax Policy, which will prove the
government's commitment and vision for industrialization. He said that Moody's has also appreciated the PTI government's Piscal reforms. The minister said that from August to December 2018, the country received foreign direct investment worth $1.72 billion, which is “more than double the Pigure reported in the Pirst Pive months of the previous government”. “When it comes to circular debt, the PML-N say they left Pakistan ‘happy and prosperous’ and claimed they had had good governance throughout their tenure,” Azhar said and added, “In reality, the Pigures more than doubled.” “When they (PML-N) came into power, they Pirst cleared the circular debt without conducting any pre-audits that’s a separate scandal,” he said. “But by the time they left the corridors of power, circular debt had crossed Rs1,000 billion.” Azhar said that if the losses incurred by public sector companies are examined, the total annual loss by these companies stood at Rs190 billion when the PML-N took the government’s reigns. The latest data, from Pinancial year 2016-2017, shows that this Pigure had crossed Rs453bn, the revenue minister said, highlighting the sharp increase in public sector losses by the time the PML-N entered its
fourth year in power. “Our government took char destroyed economy and I think, exception of a few from PML-N, tha near unanimity, even in internatio tutions, that Pakistan has never exp a dePicit larger than this. However corrective measures to impr economic situation. “The result is that if you examin from July last year, the trade dePici by 5pc, whereas in December alon 18pc,” Azhar said. Azhar noted that when his pa into power, Pakistan’s imports were at a rate of 15pc, whereas now imp witnessed negative growth, meani absolute terms, and even percenta decline can be seen. “When we January’s data, we will have a h growth Pigure when it c exports,” he remarked.
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SPECIALREPORT 07
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08 EDITORIAL
FEBRUARY 12 - FEBRUARY 18, 2019
Founder & Chairman Zulfiqar Ali CEO and Chief Editor Asad Kharal Editor Rahil Yasin editor@customstoday.com.pk For advertising & subscription marketing@customstoday.com.pk www.customstoday.com Phones: 042-35781643-4, Fax: 042-35781645 Address: 627, Siddiq Trade Centre, Gulberg, Lahore
EDITORIAL
An uphill task of NFC Award
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he first meeting of the 9th National Finance Commission (NFC) award under the chairmanship of the Federal Finance Minister Asad Umar and at his suggestion, agreed to include provinces in policy dialogue with the International Monetary Fund (IMF) when setting fiscal targets in the medium term. The meeting also agreed to base the award on the 2017 census results though these results continue to be controversial and have yet to be approved in the Council of Common Interests, and to set up six working groups to make recommendations including: (i) macroeconomic framework and benchmarking; (ii) vertical distribution of the divisible pool; (iii) horizontal distribution of the divisible pool; (iv) straight transfers; (v) initiation of measures to simplify tax procedures; and (vi) integration of FATA with KPK. This raises the spectre of the imminence of an IMF programme, though sources continue to maintain that the Prime Minister is not yet convinced that the country needs to seek a politically challenging IMF bailout package as its approval by the Fund Board would require a revisit of major policy decisions taken so far by the government, including its fiscal policy and industrial promotion package (not yet passed through parliament titled second amendment finance bill 2019). This is notwithstanding the emphasis on engaging provinces while setting the fiscal targets in the medium-term which may allow the government some negotiating room for the current year at least. At the outset, it is necessary to acknowledge the spirit of cooperation and consultation that Asad Umar instilled in the meeting which is in marked contrast to the high-handed approach to the NFC award, pending since 2015, taken by former Finance Minister Ishaq Dar who bears full responsibility for derailing the process till his ignominious departure from the country in 2017 (though he too had set up working groups as a way to deal with issues facing the centre after the 2010 7th NFC award). These issues are two-fold. First, shrinking federal government revenue (as the share of the provinces in vertical distribution was raised from 49 percent to 56 percent during 2010-11 and 57.5 percent during the remaining years of the award) without a commensurate decrease in allocations on those subjects that were devolved as per the 18th Amendment due to continued lack of provincial capacity.The federal government's representative rightly pointed out that while the federal share of the divisible pool was slightly less than the annual outlay on debt servicing and defence and that the rest of the Centre's expenditure was through borrowing.
Establishing a tax commission T
LAHORE
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he government has reportedly decided to establish a highpoweredTaxCommissionwith the objective of getting back the power to collect general sales tax on services and agriculture income tax from provinces aswell asformulate a uniPied valuation rate for real estate, according to credible media reports. This is not likely to produce any positive result as the constitution of Pakistan gives to the provinces the prerogative of collecting and utilizing sales tax on services, though sales tax on goods is collected by the Federal Board of Revenue (FBR). In the past, FBR, on payment of a fee, collected sales tax on services on behalf of the provincial governments howeverthe situation changed when Sindh decided to collect this tax by creating
the Sindh Revenue Board to collect it which, in turn, resulted in: (i) higher collections for the province not only because the Sindh Revenue Board (SRB) was more cognizant of the extent of the income of the services sector due to its proximity relative to FBR but has since raised provincial revenue by extending thetax tomore services;and(ii)thecollectioncharge was not payable to FBR anymore. The Sindh government took a very bold step by refusing to allow the FBR to continue to collect sales taxonservicesduringthepresidency of Asif Ali Zardari who had put considerable pressure on Sindh, where the PPP was also in power, to maintain the status quo by allowing FBR to collect sales tax on behalf of the province. The province's resistancetothismoveledtonotonlyasigniPicant increase in collections under sales tax on services but also led to Punjab and Khyber Pakhtukhwa
following suit and raising their own collections under this head though Sindh clearly remains in the lead in generating revenue from this source. Granting greater Pinancial autonomy to provinces, through not only empowering provincial revenue boards to begin collection of those taxes that come underits jurisdictionas per the country's constitution but also building capacity to deal with lacunae in social sector development as envisaged under the 18th constitutional amendment, must be respected as they represent a consensus across the political divide. Granted that the Pakistan Tehrik-i-Insaaf (PTI) was not party to these decisions as it did not have a presence in the assemblies between 2008 and 2013 yet reversing these decisions require all the provinces' to be on board and it is highly unlikely that Sindh would agree.Additionally,irrespectiveofthe deference accorded by the Punjab
Chief Minister to the Prime Minister one would hope that Usman Buzdar takes a principled decision in this regard in the interest of the province rather than taking a dictation from the federal government. Reports also indicate that income tax on farm income is also being considered to be collected by the centre with a uniPied valuation rate of real estate. Farm income tax is again a provincial subject as per the constitution; however Business Recorder has urged all administrations, past and present, to set tax on farm income at the same rate as individual income tax, a suggestion endorsed by economists but never implemented as the assemblies, federal and provincial, are dominated by the rich absentee landlords who resist any change in theconstitutioninthisregardand/or allow the provincial assemblies to raise taxes on farm income on the basis of actual documented proPit.
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NATIONAL 09
FEBRUARY 12 - FEBRUARY 18, 2019
FBR directs to enhance vigilance at Export Processing Zone
ISLAMABAD: FBR directed the officers and officials dealing with the EPZs to keep monitoring and take timely action where they find irregularities which may cause a huge loss to government. According to the sources, FBR has issued instructions that customs authorities should strengthen internal controls from import of input goods till export of finished goods by Export Processing Zones. FBR requested to export processing zones authorities to cooperate in providing information about establishing new units in EPZ and closing of units in EPZ so that customs authorities can monitor them timely.
Revenue shortfall rises to Rs197b during first seven months
ADC Azmat Tahira vows to provide full support to business community
KARACHI
LAHORE
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espite introduction of two supplementary finance bills, the revenue collection for the first seven months of the fiscal year showed a shortfall of more than Rs197 billion, with a meagre 3pc growth in the July- January period. According to media reports, provisional figures collected by the FBR show that revenues for the period reached Rs2,059 billion against a target of Rs2,256 billion. In comparison to last year collection of Rs2,996 billion the revenue collection posted a growth of 3pc to Rs2,059 billion. On monthly basis, the revenue collection has reached to Rs280 billion in January 2019 as against the projected target of Rs307 billion, posting a shortfall of Rs27 billion and growth of 2.2pc as against Rs274 billion collected in the same month last year. An FBR source with access to the data told that the revenue collection data is still coming in and will be adjusted in the next week. However, the source said the collection is far behind the projected targets. January has emerged the second worst month after December in terms of revenue collection when FBR has received lower tax collection. In December FBR posted Rs75 billion shortfall in revenue collection. The major contributor in the shortfall is Inland Revenue Services (IRS) while custom collections almost remain on target because of currency devaluation. The sluggish growth was seen in revenue despite low refund payments. The widening revenue shortfall means the government will have to take drastic measures going forward.
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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
M HAYAT
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ollectorate of Customs Appraisement Additional Collector Azmat Tahira has said that facilitating the business community by all means in clearance of consignment in minimum time and registration of Pirms on WeBOC is top priority of authorities at the NLC Dry port. She was talking to a group of businessmen led by Lahore Chamber of Commerce and Industry Vice President Faheem Ur Rehman Saigal at the NLC Dry Port. Tahira said that during the last two years the customs appraisement has worked hard to ensure minimum time in clearance of goods and articles and easy registration of the Pirms. Human interference due to the proper implementation of WeBOC has been reduced signiPicantly thereby reducing the cost of doing business, she added. She said that businessmen are welcomed as all ofPicers especially collector Jamil Nasir himself is easily accessible for the resolution of genuine grievances of the business community. Answering a question of the LCCI VP about the 0.9 percent additional tax in Punjab, she said that the Customs authorities would take up the issue with the top authorities in their proposals; however, the business community itself should also take up the issue at higher forums.
— Exclusive Customs Today photo
CUSTOMS TODAY REPORT
The LCCI VP while expressing his grave concern over the seizure of the containers cleared by the customs authorities at Port Qasim. He said that customs anti-smuggling and customs intelligence have been harassing the genuine importers and impounding their containers despite their clearance by the Karachi Customs authorities is an injustice which is a great blow to the legal business activities. He said that the smugglers are facing no hurdles in conducting illegal business but the genuine
businessmen are Pinding legal business a hard nut to crack. The additional collector vowed to extend all out corporation in resolving the issue of illegal seizure of the cleared consignment by Customs ASO and Customs Intelligence and Investigation. “We will take up the issue with the concerned sections of customs including Customs ASO and Customs I&I,” she said, adding that the major objective of the customs authorities is to facilitate the business and trade.
Faheem Ur Rehman Saigal and his group was also given briefings on various newly installed facilities pertaining to WeBOC and registration of firms for the business men. The LCCI VP also invited the additional collector and her team at the LCCI for further streamlining affairs between both the sides. On the occasion, Deputy Collector Sobia Kiran, businessmen including Arshad Bhatti, Ahsan, Naeem Hanif and others were also present on the occasion.
Appeal to Govt introduce single tax regime To,
Asad Umar, Federal Minister for Finance, Islamabad Dear Sir,
I want to draw your attention that government should consider introducing single tax regime in the country that would help in reducing taxpayers’ problems, encouraging tax culture and improving tax revenue of the country. At present a businessman has to cope with 47 taxes including sales tax, income tax, withholding taxes, customs & excise duties, EOBI tax, Workers ProPit Participation Fund and Workers Welfare Fund apart from fulPilling multiple documentations and Piling requirements which is a very tedious process.
This complicated tax payment system is consuming lots of precious time of a businessman in dealing with tax matters. Government should merge all taxes into a single tax in order to minimize interaction between taxpayers and tax collectors and to improve ease of doing business in the country. Sir, New Zealand has achieved good results by introducing single tax
regime while Hong Kong is collecting only three taxes and Malaysia eight taxes, but in Pakistan a businessman has to deal with 47 taxes which put lots of additional burden on taxpayers. Now the government has announced to bring down 47 taxes to 16 which is commendable. However, government should introduce a single tax regime by clubbing together all taxes that would greatly
help in promoting business activities and enhancing tax revenue of the country. I suggest that government should increase the use of IT and in order to minimize the interaction between taxpayers and tax machinery, government should develop a software for single tax connection and ensure its automatic credit to all relevant agencies so that businessmen should not have to go to various departments for tax payment. Introducing a single tax regime would be a revolutionary step towards bringing drastic reforms in Pakistan’s taxation system and making it business friendly tax system. Best regards,
Ahmed Hassan Mughal President ICCI, Islamabad
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10 NATIONAL
FEBRUARY 12 - FEBRUARY 18, 2019
FBR seeks monthly performance report for evaluation
MULTAN: The Federal Board of Revenue directed Director General Intelligence and Investigation (Inland Revenue) to present performance report of all directorates including Multan Office for evaluation. Sources told Customs Today the Federal Board of Revenue introduced monthly performance evaluation system for the officers of Inland Revenue to evaluate performance of different units every month. The Federal Board of Revenue sought comprehensive report about the performance of different jurisdictions including Multan, Bahawalpur and others.
FBR changes betel nuts clearance procedure after CustomsToday unearthed scam KARACHI
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he Federal Board of Revenue (FBR) has adopted a new mechanism for clearance of consignments of imported betel nuts, after so much coverage by Customs Today regarding Rs 1000 billion mega scam of green channel where hazardous and low quality betel nuts were also being imported from India, Nepal and other countries with the help of a few customs staff in violation of the import policy. According to the notiPication C.No.12(12)S/Lit-HC/Cus/2019 issued by Secretary Legal Customs Shahid Ali, with mutual consent of Department of Plant Protection (DPP) and importers, a testing laboratory will be selected from the list of approved laboratories/companies as contained in Appendix H of Import Policy Order. The inspection report of these laboratories/companies will be admissible for the clearance of the imported shipment of betel nut. Commerce Division will incorporate necessary amendments in the Import Policy Order to allow pre-shipment inspection (PSI) of food items including betel nut. According to notiPication, the pre-shipment inspection (PSI) will be undertaken by already recognized labs mentioned in the Import Policy Order. Import permit will be issued by Department of Plant Protection (DPP) within 48 hours on receipt of application. The mechanism notiPied above was agreed between FBR
and Commerce Division. It is pertinent to mention here that Customs Today unearthed the scam of misuse of green channel facility in which a few senior customs ofPicials were clearing a large number of containers loaded with infested betel nuts through green channel at Port Qasim and other ports. FBR and Customs high-ups did not take action against ‘corrupt’ customs ofPicials despite complete proof and timely reporting by Customs Today. Customs Today published several reports about betel nuts smuggling worth billions of rupees through ports at Port Qasim and Appraisement
East Collectorate. Extensive research revealed that an FBR ofPicial at one instance has mentioned to media on how many containers are released under green channel without scanning or examination. The FBR ofPicial said that 700,000 consignments were released under green channel. Sources said green channel scam started in 2011-2012. So much of liquor, mobiles, electronic items, cigarettes, betel nuts, chemicals, etc. have been poured into the country through green channel in these years. Pakistan has lost Rs. 1,000 billion and also millions of lives
and properties due to this. After so much coverage by Customs Today, Customs Preventive and Intelligence launched raids on green channel ‘smugglers’ and seized 6 containers of betel buts on 21 February, 2018 from a godown in Korangi Industrial Area which were cleared through green channel under the protection of a few senior customs ofPicers at Port Qasim. These reports led to multiple raids, tens of FIRs and recoveries of illegally cleared goods worth billions of rupees. In fact, in a single raid at a SITE area godown, 600,000 Kgs. of betel nuts worth Rs 1.5 billion were seized. Customs
Today also published investigative reports about changing of strategies by green channel smugglers as they started clearing illegal goods through yellow channel & TP. Even, Customs Today succeeded to prove its reports regarding green channel smuggling as former Chief Justice of Pakistan Mian Saqib Nisar took notice of the issue and Directorate General Customs Intelligence & Investigation (I&I) admitted that green channel facility has been mercilessly abused by some syndicates in connivance with a few corrupt customs ofPicers. The Supreme Court associate also wrote to Chairman NAB to take necessary action.
Multan I&I seizes ceramic tiles of worth Rs.4m during operation D
MULTAN
IMRAN ALI KHAN
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irectorate of Customs Intelligence and Investigation seized huge quantity of foreign origin ceramics tiles worth Rs4 millions in their action. According to details, Deputy Director Customs Intelligence and Investigation Khial Muhammad Khan received credible information from his source that a truck loaded with imported ceramic tiles will transport through Dera Ghazi Khan Region. Deputy Director Customs Intelligence constituted special squad to carry out action against them and Inspector Umer, Inspector Haq Nawaz, Muhammad
ZulPiqar and others took part in the operation. Following the instructions of deputy director Customs Intelligence team took special measures for the recovery of ceramic tiles and took effective measure to curb smuggling in the region and started patrolling in Multan Road by tightening monitoring of the movement of goods to intercept smuggled goods. Customs Intelligence team intercepted the suspected truck bearing registration number QK-721 and recovered huge quantity of ceramic tiles. Customs teams found that recovered ceramic tiles was Iranian origin. Customs Intelligence asked the drivers of the trucks to produce
legal documents of recovered ceramic tiles but they failed to produce any import documents of the recovered tiles to justify their
legal possession. Customs Intelligence teams seized almost 1200 square feet ceramic tiles during their action by framing seizure re-
port under Customs Act 1969.The value of seized ceramic tiles was almost Rs4 million. Further investigations are still under process.
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CARTOONSSPECIAL 11
FEBRUARY 12 - FEBRUARY 18, 2019
Peshawar AFU recovers hashish hidden in fruits
PESHAWAR: The Air Freight Unit (AFU) team deputed at Bacha Khan International Airport thwarted an attempt of smuggling of hashish through oranges. Sources of airport told Customs Today that an attempt of smuggling was foiled when drugs were found instead of oranges in the bags. The AFU apprehended the smuggler and registered FIR against smuggling charges. The sources informed that drugs were hidden tactfully and upon checking of luggage the customs staff seized hashish and arrested the accused who was traveling to Qatar by a private airline.
FBR directs LTU to recover evaded amount of Rs669.486 from four textile mills ISLAMABAD
MUHAMMAD FAIZAN www.customstoday.com
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Federal Board of Revenue (FBR) directed the Large Taxpayer Unit (L:TU) Karachi to recover the sales tax amounting to Rs669.486 million from four textile mills including M/s Al Karam Textile NTN (069806-3), M/s Gul Ahmed Textile NTN (0698283-2), M/s Tata Textile Mills NTN (06984002) and M/s Dewan Textile NTN (0698400-2). According to the details, it was revealed in the report of Auditor General Pakistan that four taxpayers registered with Large Taxpayers Unit Karachi, did not pay sales tax, for the year 201314, and 2015-16 as assessed by the departmental authorities on account of under valuation of supplies, claim of input tax on goods not relevant to taxable supply, and non-compliance of condition of section 73 of the Sales Tax Act 1990. Evaded and short paid amount of government revenue was
estimated at Rs669.486 million. Auditor General observed that recovery was not made after lapse of one to Pive years. Auditor General directed the Federal Board of Revenue to Pinalize the legal proceedings and submit
updated status of the cases. On the direction of Auditor General of Pakistan, Federal Board of Revenue has ordered the LTU Karachi to initiate the expeditious legal and recovery proceedings of government revenue and also Pix
the responsibility against the ofPicials at fault. It is important to mention here that according to Section 7, 8 and 73 of the Sales Tax Act 1990, read with SRO 1125 (1) 2011 dated 31 December 2011, for the purpose of adjustment refund
FBR directs RTO Hyderabad to recover Rs1.709m from M/s Mast Qalander Cotton Ginners
of input tax, the registered person is required to comply with certain conditions like use of purchased goods for taxable supply, and transfer of payment of purchase by the buyer in bank account of the supplier through banking channel.
FBR assigns Rs3146.69m revenue collection target for Feb to Multan Customs MULTAN
CUSTOMS TODAY REPORT www.customstoday.com
ISLAMABAD
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CUSTOMS TODAY REPORT www.customstoday.com
ederal Board of Revenue (FBR) directed Regional Tax Office Hyderabad to recover government dues amounting to Rs1.709 million from M/s Mast Qalander Cotton Ginners (National
Tax Number 4012115-1). 0Sources told Customs Today, M/s Mast Qalander Cotton Ginners made taxable supply of Rs10.679 million to the M/s Al-Muqeet Textile (Pvt) Ltd NTN 1858071-8 (Aative) at zero rate, and it was evident that supplier was suspended and he was not entitled to charge zero rate of sales tax rather tax at sixteen
percent was payable. Short levied tax amount comes to Rs1.709 million which is recoverable along with default surcharge and penalty. Federal Board of Revenue directed that action under Section 21 of sales tax act 1990 read with Sales Tax Rules 2006 be taken against the buyer M/s AlMuqeet Textiles and Pix the responsibility against ofPicials at fault.
he Federal Board of Revenue (FBR) has assigned Rs3146.69 million revenue collection task for the month of February 2018-19 to the Collectorate. According to the details, Multan Collectorate assigned monthly revenue collection target for the second month of the third quarter of the current fiscal year 2018-19. The Collectorate has been allocated dierent revenue collection tasks under the head of customs duty (CD), sales taxes (ST), federal excise duty (FED) and withholding tax (WHT) for the on-going month February of 2018-19. The Collectorate has been assigned customs duty revenue collection target of Rs886.31 million for the month of February 2018-19. The Collectorate was assigned Rs2213.81 million target for collection of sales tax for the duration of February 2018-19. The Federal Board of Revenue has given collection target of Rs.24.60 million in wake of federal excise duty for February 2018-19.Multan Customs has been given income tax revenue collection task of Rs.21.97 million for the period of February 2018-19.
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12
FEBRUARY 12 - FEBRUARY 18, 2019
Peshawar Excise starts crackdown against non-customs paid vehicles
PESHAWAR: Secretary Excise Riaz Khan said that his department has launched crackdown against NDP vehicle and green numbers plates while the promotions of officers have been linked with their performance to improve the efficiency of the excise and taxation department. He was talking to media persons after his meeting in Directorate of Excise and taxation department Khyber Pakhtunkhwa. He said that the department is digitalizing various section of the excise and taxation department while property and motor vehicle registration system would further be improved to make it computerized.
KARACHI
ASAD KHARAL
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AB Regional Board authorized inquiry against CEO of United Marine Agency Sohail Shams and management of KMTC, PaciPic International Lines (PIL) and M/s PaciPic Delta Shipping (Pvt) Ltd in a mega detention scam worth billions. Sources said that main benePiciary of the PaciPic Delta Shipping is Adil Khan and he is also key planner of mega scam of detention through which his company is looting and bleeding the genuine importers of Pakistan and robbing billions of rupees from them annually. Businessmen say the NAB had arrested former CM Shahbaz Sharif and Fawad Hassan Fawad over Pinancial irregularities after approval of inquiry and completion of Board’s complaint veriPication process so the NAB should also arrest Sohail Shams and Adil Khan to conduct inquiry for looting and harassing genuine importers.
Sources said these ofPicials of shipping lines and their agents with the help of some senior customs ofPicials are robbing businessmen to the tune of Rs 15 billion per year. Innocent importers of Pakistan get trapped by seeing these low rates offered by agents of these shipping companies. When the goods are given to the shipping lines in China then they do not give back the goods to importers at Pakistani ports. They start demanding additional very high detention charges. Law under SRO 1220(I)/ 2015 explains that shipping companies cannot charge any detention where speciPically it is not agreed and also speciPically not mentioned on the B/L (Bill of lading). The complaint received by NAB said, “They, through their shipper/agents in China, handed the goods to KMTC Ltd. as trust to be delivered and released here at Karachi ports. The shipping lines nominated M/S United Marine Agencies (Private) Limited as their agents at Karachi for the same. Importers also long back paid in full to the shipping lines the ocean freight charges as agreed between the parties. But despite repeated reminders and visiting ofPice of M/S United Marine Agencies (Private) Limited
and of PICT Ltd., they did not release the goods yet”. Importers told Customs Today, “they are suffering heavily daily due to non-availability of their goods, along with reputation loss & loss of customers, etc. and also the goods quality is deteriorating daily which leads to total loss very soon if the goods are not disposed in the markets”. The complaint further said, “The actions of KMTC Ltd. through its owners, management and staff including but not limited to Jong Seug Park, Yong Hwa Shin, others and of M/S United Marine Agencies (Private) Limited through its owners, management and staff including but not limited to Manzoor Ahmed, Lars Tore Bergstrom, Lars Goran Safverstrom, Mohammad A Dhamee, Sohail Shams, Rishad Kirmani, Mohsin Lodhi, others, individually and jointly, tantamount to conspiracy, criminal breach of trust, cheating, mischief to cause losses, threatening, etc. which attract penal sections under PPC 34, 407, 409, 420, 427, 506, besides others.” Importers told Customs Today that they give goods as trust (amaanat) to the shipping lines but these companies hold their ‘amaanat’ illegally and blackmail them to pay heavy amounts of charges and thus these shipping lines & agents make good wealth through criminal means. Another complaint received by the NAB demanded legal action for recoveries of amounts looted and recovering losses of Rs. 610 billion to the national exchequer per year while also stopping such further losses from the accused persons of these companies including S.S.Teo, Peter Chang, Tan Chor Kee, William Tay, Teo Tend Seng, Tony Teo, Choo Wee Teo, Kuan Kim Kin, others of PIL Ltd; and Bakhtiar Khan, Naveed Ahmad Khan, Tay Kian Phuan William, Teo Chew Seng, Teo Siong Seng, Qamar Naqi, Baig Mirza Mueez, Khan Imran and others of M/S PaciPic Delta Shipping (Pvt) Ltd. Sources said PaciPic International Lines is a shipping company incorporated in Singapore in 1967. The founder of PIL is the Chinese entrepreneur Chang Yun Chung. While Bakhtiar Khan is owner of Delta Group of Companies and Chief Executive OfPicer at Delta Transport (Pvt) Ltd engaged with businesses like transportation, trucking and railroad. Sources said PaciPic Delta Shipping (Pvt) Ltd is also a company of Delta Group and working as agents of PIL in Pakistan. As per the complaint received by the NAB, the nexus of some Customs staff, Port Qasim and shipping lines like Maersk Line along with its agent Maersk Pakistan Private Limited, including its owners, managers & staff and also staff of PIL Ltd and its agent M/S PaciPic Delta Shipping (Pvt) Ltd are making illegal money through malpractice. “Firstly, customs department delays goods of majority of containers that arrive in red channel. 80% of the goods cleared in red channel take a duration which is more than the free days provided by the port terminals. Hence, the port terminals take huge amounts from the importers on each consignment thus delayed. These shipping
lines also force the importers to pay huge illegal sums. All these three: the customs staff, port terminals, shipping lines as mentioned above delay the clearance and delivery of the goods to the importer. Due to this delay, the revenue collection of duty and taxes is slowed down drastically of the actual speed. Like where these goods were to be cleared and delivered in 2 days then it takes an average of 20 days to clear and deliver,” the complaint said. The complaint received by the NAB said, “The total revenue collection by customs department is Rs. 610 billion. If the process of revenue collection is not slowed down by the above-mentioned parties then at least the revenue collections could be doubled. Hence, total loss to national exchequer due to above nexus and illegal acts of the subject accused is Rs. 610 billion”. “The terminal ports and shipping lines are not allowed to collect any demurrage and detention amounts from the importer when the importer provides ‘delay and detention certiPicate’ under section 14 A of the Customs Act, 1969. Despite this, the port terminals and shipping lines blackmail and harass the importer to collect hundreds of thousands of rupees per single consignment. Since this is illegal money demanded from the citizens of Pakistan and hence it can be termed as an ‘extortion’ amount,” the complaint said. The complaint said, furthermore, under rules 603 (Q), 603 (R), 604 (Q) and 607 (E), others of SRO 1220 (I)/2015, the shipping lines cannot charge any demurrage or detention charges where it is not speciPically written on the B/L. But still in violation of these rules and laws, the shipping lines fearlessly hold the containers of the importers and charge them exorbitant detention charges. These detention charges even exceed the actual cost of container by a whopping 1,000%! “The shipping lines charges only 30% of its cost from the importer to allure importer to give his containers to them. All remaining 70% of cost and huge proPits are made through illegal means and black money. Like China-Pak cost of shipment for a 40HQ container is charged USD 300 whereas the actual cost to the shipping company is USD 1,000. Pak-China freight is almost USD 0 to USD 10 which is even more surprising. When white income of these shipping lines is only 30% of their cost then it is obvious that they are indulging in many illegal and black activities to cover cost and also make huge proPits,” the complaint said. “When complaints are made to Customs department then they do not take action against the accused which is mandatory under sections 156 (1) 7A of the Customs Act, 1969 and also rules 603 (Q), 603 (R), 604 (Q) and 607 (E), others of SRO 1220 (I)/2015. The nexus of some Customs ofPicials, Maersk Line and PIL Ltd has made these active provisions of law entirely redundant and they should be severely punished for the same,” the complaint said. The complaint demanded from the NAB to take legal action against the subject accused persons, recover amounts looted by them, recover losses suffered by national exchequer to the tune of Rs. 610 billion per year and stop further losses. Now the NAB has authorised inquiry against these complaints.
Published by M S Raza Off# 42, 3rd Flr Gull Plaza M.A Jinnah Road Karachi, Printed by (Ibne Hassan Offset Printing Press, Shops No. 33 to 36 , Hockey Stadium, Karachi).