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PAKISTAN’S FIRST INDEPTH NEWSPAPER ON CUSTOMS
26 ABC Certified Vol 75 Issue No. 34
Weekly Weekly
Karachi, Tue Apr 16 - Mon Apr 22, 2019
Regd. No, MC-1381
Price Rs. 50.00
IMPROVING ECONOMY
Hammad Azhar says economic indicators moving in positive trajectory due to Govt’s meticulous steps. | SEE PAGE 06 | MULTAN
POSTING GROWTH
IMRAN ALI KHAN
www.customstoday.com
C Zeba Hai's Customs Central Region posted a growth of over 9 percent in customs duty by collecting Rs7915m. | SEE PAGE 04 | REVIEWING CLEARANCES
Peshawar Collector Asif Saeed visited Khurram & Kohat Customs to review clearance procedure | SEE PAGE 03 | RECOVERING NDP GOODS
Directorate of Customs I&I recovered huge quantity of smuggled goods from a container near SIE. | SEE PAGE 02 |
ollectorate of Customs under supervision of Collector Ambreen Ahmad Tarar has generated Rs9017.141 million during third quarter (January to March) of the ongoing Fiscal Year 2018-19. The Collectorate collected customs duty of Rs4098.356 million against the target of Rs3954 million during the three months of the 3rd quarter of FY2018-19. The Collectorate posted 3 percent growth in the revenue collection of customs duty by generating Rs144.356 million excess collections from the set task due to effective strategy designed by Collector Ambreen Ahmad Tarar. Sale tax collected by the MCC was almost Rs4776.583 million against the target of Rs8086 million collected during third quarter of the current Riscal year 2018-19. The Collectorate achieved 60 percent revenue task due to decline in the import clearances from Multan Dry Port. The Collectorate generated income tax of Rs 87.987 million against the assigned task of Rs55 million during the third quarter. The Collectorate showed good progress in the collection of income taxes by collecting excess revenue of Rs32.987 under the head of customs duty. It attained 160 percent growth from the set target of MCC Multan during the said period. The Collectorate made collection of Rs54.215 million under the head of federal excise duty during third quarter. Almost 187 percent of the assigned target accomplished in wake of federal excise duty (FED) during the period. The Collectorate collected Rs9017.141 million against Rs12124 million throughout third quarter of the Rinancial year 2018-19. Multan Customs is set to continue
the positive trajectory in boosting revenue collections through various revenue enhancement strategies as well as maintaining the momentum by encouraging business community to avail facilities of Multan Dry Port for swift clearances of shipments. Meanwhile, Collectorate of Customs invited tenders from specialized supplier/Rirms for purchase of ofRice stationery, different hardware, machinery and ofRice furniture. Multan Customs will have to purchase different ofRice items worth Rs1.65 million for ofRicial requirements. Collector Ambreen Ahmad Tarar has formed Rive member purchase committee including Deputy Collector Saqib-ur-Rehman, Assistant Collector (Headquarter) Omer Bin Zafar Chatha, Assistant Collector Syed Jalal Haider Zaidi, Account OfRicer Abdul Munaf and Superintendent General Branch Rana Muhammad Ilyas for the purchase of different ofRice goods. The Collectorate will purchase ofRice stationery of Rs300,000 for ofRicial usage. Multan Customs will purchase ofRice hardware of Rs700,000 and acquisition of ofRice machinery worth Rs400,000. Multan Customs will also purchase ofRice furniture worth Rs250,000. Multan Customs has issued tender through Public Procurement Regulatory Authority in which interested supplier Rirm has been asked to deposit pay order amount in favor of Customs Collectorate Multan; otherwise, their bid shall be rejected. The bidder should be on active taxpayer list (ATL) of Federal Board of Revenue. Bidder Rirm should attach an afRidavit of Rs100 stamp paper to show that the Rirm is not blacklisted by any government department if this afRidavit is found false then appropriate action against the Rirm will be taken by forfeiting of security amount. Bids submitted will be inclusive of all taxes and details of warrant, delivery time period and sample of each item should be mentioned where necessary.
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NATIONAL
APRIL 16 - APRIL 22, 2019
SHC seeks comments on petition filed by M/s Tata Textile Mills
KARACHI: The SHC directed customs department to file their comprehensive para-wise comments on a constitutional petition filed by M/s Tata Textile Mills Ltd against show cause notice for recovery of Rs114,962,747 on account of customs duty and taxes. Counsel for the petitioner stated in his petition that a show cause notice was issued to the petitioner dated 01/07/2015 wherein it was alleged that the petitioner was granted a license for operating an export oriented unit under SRO 327(1)/2008 and petitioner was authorized to import plant, machinery.
ISLAMABAD
TARIQ DERYA
www.customstoday.com he Customs North Region surpassed revenue collection with extra amount of Rs2.95 million under all heads of duty & taxes during month of March FY18-19 against revenue collection during same period of corresponding year. Sources of North Region told Customs Today that during the month of March, the North Region which comprises Model Customs Collectorate (MCC) Islamabad, Peshawar, Sambrial and Gilgit-Baltistan showed satisfactory performance. Sources informed that during the month of March the North Region received less customs duty (CD) of Rs1042.13 million while it earned extra revenue worth Rs1046.98 million during same period last year. Sources told that the North Region earned extra revenue of Rs1476.16 million under head of sales tax (ST) during March against collection of Rs1334.65 million under same head during last year. The North Region received Rs.49.93 million under head of federal excise duty (FED) while it received amount of Rs157.52 million under head of FED during same period of FY17-18. The North Region received Rs680.01 million under head of IT against collection of Rs615.92 million.
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DG Valuation determines customs values of toilet soap KARACHI
CUSTOMS TODAY REPORT www.customstoday.com
irectorate-General Customs Valuation determined customs values of toilet soap vide Valuation Ruling No. 1360/2019 under Section-25-A of the Customs Act, 1969. Earlier customs values of toilet soaps were determined vide VR No. 863/2016 dated 2.6.2016. Aggrieved with the valuation ruling, certain importers filed revision petitions before the Directorate General of Customs Valuation under section 25-D of the Customs Act, 1969. The revision petitions were decided and customs values of toilet soaps were notified afresh vide Order-in-Revision No. 217/2016 dated 2.8.2016. Several meetings with stake holders including importers, representatives from Karachi Chamber of Commerce and Industry, Pakistan Soap Manufacturers Association and representatives from field formations were held in Directorate-General to discuss the current international prices of the subject goods. They of the subjects good.
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PM Imran assures maximum facilitation to CPEC-related companies ISLAMABAD
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rime Minister Imran Khan said that the government accorded top priority to the China-Pakistan Economic Corridor (CPEC), as it would not only help in translating the all-weather Pak-China relations into a mutually beneRicial economic equation but would also open new vistas of opportunities for the entire region. The prime minister was meeting the representatives of 15 leading Chinese companies working on various CPEC and other projects in Pakistan. The Chinese delegation included representatives from Power China, Three Gorges Corporation, CMEC Neelum Jhelum Power Plant Project, Cr-Norinco Orange Line Project, Huawei, Zong, Port Qasim Power Plant, China Gezhouba Corporation, China State Construction, China Harbour, Matiari-Lahore Transmission Line Project, Haier and other companies. Chinese Ambassador to Pakistan Yao Jing was also a part of the delegation. Power Minister Omar Ayub Khan, Planning Minister Makhdoom Khusro Bakhtiar, Board of Investment Chairman Haroon Sharif, Energy Task Force Chairman Nadeem Babar and other senior ofRicials were also present on the occasion. Talking to the Chinese delegation, the prime minister said that the government would provide all possible facilitation to the Chinese companies in undertaking proRitable business ventures and taking advantage of the business-friendly policies of the present government.
The Chinese ambassador, while conveying greetings from the Chinese president and premier, said that Chinese leadership was looking forward to the visit of the prime minister to China. He thanked the PM on behalf of Chinese leadership and business community for his personal interest in facilitating Chinese businessmen and addressing their issues. He assured the PM that Chinese companies would continue to partner with the government for the socio-economic development of Pakistan. Meanwhile, Pakistan and China have agreed to amend a framework accord on implementation of multibillion dollars mainlineI project of the Pakistan Railways in
a bid to reduce the size of the muchdelayed strategically important scheme and to complete it in three phases. According to media reports, the decision to split the project, which was once planned to be completed in three years, suggests that work on the single-largest project of the China Pakistan Economic Corridor (CPEC) will now take at least six years to complete – from the day of its groundbreaking. It has been agreed to reduce the length of the project from 1,872km to around 1,680 km, according to the government sources. The government has also decided to exclude the component of building a new 163km long double line between Karachi and Hyderabad from the scope of the frame-
Customs I&I seizes huge quantity of smuggled goods from SIE D LAHORE
M HAYAT
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irectorate of Customs Intelligence and Investigations (I&I) recovered huge quantity of smuggled goods from a container near Sundar Industrial Estate. Sources told Customs Today that Director Customs Intelligence and Investigation Rubab Sikandar received credible information about the smuggling of goods. She constituted antismuggling squad comprising Intelligence OfRicer Saifullah Hinjra, Intelligence OfRicer, Malik
— Exclusive Customs Today photo
Customs North Region earns extra revenue of Rs2.95m during March
Director I&I Rubab Sikander Sohail, Hamid Babar and During checking, the Fida Hussain. The above- anti-smuggling squad said anti-smuggling squad intercepted a container established a check post and recovered huge quannear Sundar Industrial tity of non-duty paid goods. Estate and started check- The documents showed ing of vehicles. that the goods were
booked from Karachi by a trader Asad for onward delivery to a trader of Shah Alam Market, later identiRied as Zahid. Sources told that during another operation, Customs I&I team raided a godown in Ichra Market and recovered huge quantity of non-duty paid Chinese origin curtain and sofa cloth. Sources told that market value of seized Chinese curtain and sofa cloth is Rs3 million. The anti-smuggling squad comprised Superintendent Nasir Tarar, Inspector Shah Nawaz Langrial and Intikhab Alam. Further investigations are still in progress till Riling of this report.
work agreement. It has been decided that this component will be executed on Public-Private Partnership or Build Operate and Transfer Basis if declared feasible after the commercial and Rinancial feasibility study, said sources in the Ministry of Railways. Similarly, the Havelian-Textile rail track has also been excluded from the project. The ML-I project will be completed on the Engineering Procurement and Construction (EPC) mode under a sovereign deal. But like the Pakistan Muslim League-Nawaz (PML-N) government, the government of the Pakistan Tehreek-e-Insaf (PT) has also failed to decide whether the Chinese loan for the ML-I project will be taken on the books of the Finance Ministry or that of the Ministry of Railways.
Faisalabad I&I seizes prohibited medicines worth Rs 10 million irectorate of Customs Intelligence and Investigation has seized the smuggled Rega Sildenate citrate worth Rs 10 million during an operation in Sahiwanwala Interchange. Sources told Customs Today that that the confiscated sexual medicines are Indian made and being transported from Karachi to Faisalabad. Following a tip-off, Director Syed Asad Raza Rizvi constituted a team to foil the smuggling attempt of illegal medicines.The superintendent was also informed that the medicines would be transferred from Karachi to Faisalabad via overhead bridge Sahiwanwala Interchange. —NaeemSheikh
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NATIONAL 03
APRIL 16 - APRIL 22, 2019
Customs Court extends physical remand of suspects in smuggling case
KARACHI: The Customs Court resent suspects namely Naveed son of Muhammad Haroon and Tariq Ali son of Muhammad Akram due to extension in their physical remand, who were allegedly involved in a case of attempting to smuggle non-duty paid Lux Bar soap, Pears transparent soap, betel nuts and other contraband goods. Investigation officer produced the above-named suspects along with first information report (FIR) and informed that on an actionable information, customs team raided a godown and found 84,000 pieces of Lux bar soap.
FBR detects 992 non-registered industrial gas connections
Asif Saeed visits Khurram & Kohat Customs to review clearance process
ISLAMABAD
MUHAMMAD FAIZAN www.customstoday.com
PESHAWAR
NADIR KHAN
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delegation of Customs Collectorate led by Collector Asif Saeed Khan Lughmani and Collector Appraisement Ihsan Ali Shah visited Customs Station Khurram and Kohat to review the procedure of Customs activities. Both the Collectors Asif Saeed Khan Lughmani and Ihsan Ali Shah planted trees at both Customs stations. The delegation thoroughly checked the installations at both Customs Station and said to further provide facilities for speedy revenue collection. The collectors were informed about trade situation at Khurram Customs Station at Parachinar. Customs Station is not only vital for trade with Iran but also with Afghanistan. Most dry fruits exported through this route to both Iran and Afghanistan. The Parachinar Customs Station remained closed for several years due to insurgency at the border with Afghanistan but once again it has been opened for trade purposes. The Collector Customs lauded the efforts done by Customs ofRicials for carrying out struggle to eradicate smuggling through this dangerous route. The collectors assured that soon efforts will be made to provide the missing installation. Later, the delegation visited Customs Station Kohat and was briefed about the situation at Kohat where salt and cement were being exported to Afghanistan and other central Asian countries.
— Exclusive Customs Today photo
ederal Board of Revenue (FBR) detected 992 non-registered industrial and commercial gas connection holders liable to be compulsory registered under the tax laws. Sources told CustomsToday that FBR has directed its field formations to register the industrial and commercial gas consumers and initiate legal action for recovery of government dues. Sources told that examination of industrial and commercial connection data of gas distribution company Sui Northern Gas Pipe Line (SNGPL) revealed that 992 connections falling under the jurisdiction of certain oďŹƒces were not registered for sales tax despite the fact that their utility bills were higher than the prescribed limit for compulsory registration. The persons were not registered under the SalesTax Act, 1990 which resulted in potential loss of government revenue.The names of Alcatal Pakistan Ltd Islamabad, Metro Habib Cash and Carry Pakistan Pvt Ltd Lahore, Kitchen Cuisine (Lahore), M/s Asia Rubber Industries (Lahore), M/s Qurban Enterprises Lahore, M/sTubex Packages Lahore, M/s Shahkot Ice Factory (Shiekhupura) M/s Ramna Food Products Ltd (Lahore), M/s HunbulTex (Pvt) Ltd (Lahore), M/s Pak Green Sie (Gujranwala), M/sWire Heating Javaid Iqbal (Lahore), M/sTajammal Hussain Ice Factory (Lahore), M/s Hashim Corp Khalid Nawaz Chattha (Lahore), M/s 3A Apparels Cloth Washing Amir Azeem (Lahore), M/s Barkat Food Industries (Multan) M/s Stitch Style Pvt (Lahore), M/s Moofi Food (Abottabad), M/s Mian Brothers Plastic Moulding Lahore, M/s Unitech Carpet (Abbottabad), M/s Sajjad Knitwear (Lahore), M/s Roshin Ice Factory (Multan) and M/sWahab Abdullah Clothstan are included in the list.
Meanwhile, Collectorate of Customs, Anti-Smuggling Organization (ASO) seized goods and vehicles worth Rs230.4 million in March 2019. As per the statistics received from the anti-smuggling 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 ammunition of 3902 articles. Under head of food grains, the anti-smuggling unit conRiscated
Collector Asif Saeed Lughmani
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.
It is necessary to mention here that after assuming the charge Collector Asif Saeed Lughmani directed all anti-smuggling squads to adopt zero tolerance policy towards smugglers. He directed to take every possible measure to curb smuggling. He directed that anyone who found involved in smuggling should be dealt with iron hands. Collector Asif Saeed also stress to adopt comprehensive strategy to generate revenue to meet assigned revenue collection target of the Collectorate.
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04 NATIONAL
APRIL 16 - APRIL 22, 2019
Customs Preventive foils bid to smuggle Iranian HSD
KARACHI: Collectorate of Customs Preventive, Anti-Smuggling Organization (ASO) busted huge quantity of smuggled Iranian origin High Speed Diesel (HSD) worth millions of rupees. According to the details, on the tip-off by higher authorities, Customs ASO constituted a team to conduct a raid to bust oil tanker containing huge quantity of smuggled Iranian origin High Speed Diesel (HSD). During the search of several vehicles, an oil tanker bearing registration No TMH-741 was intercepted by the team ASO at the Moachko Choke Point, carrying smuggled Iranian diesel.
M/s Haffaz Corporation moves SHC against enhancement of goods consignments KARACHI
M.B RANA
www.customstoday.com /s Haffaz Corporation Private Limited approached the Sindh High Court (SHC) against enhancement of goods comprising carbon steel seamless pipes’consignments from 11.52 percent to 15.36 percent under PCT Heading no 7304.1900. Counsel for the petitioner stated in his petition that petitioner is engaged in the import and export of carbon steel seamless pipes for retail and wholesaling and proceeded to import three consignments of carbon steel seamless pipes of assorted seizes and the same were accompanied with appropriate packing lists and certificate of origin under the Pakistan-China FTA. He further submitted that petitioner also prepared and submitted the necessary goods declaration and declared the consignments as falling under PCT Heading 7304.3900, however, high official of customs department proceeded to unilaterally charge the classification of the goods and illegally imposed PC Heading no 7304.1900 as a consequence of the impugned action the customs duty to be levied on the goods was enhanced from 11.52% to 15.36%. He further argued that no show cause or written reasons have ever been communicated to the petitioner, evidently the petitioner has neither imported, supplied and or engaged in the business of line pipes used for oil or gas pipelines, the same is substantiated when various commercial transaction inter-se the petitioner and third parties are perused. Counsel stated the without show cause notice, customs officials are going to encashment of its bank guarantee in the absence of any opportunity. Citing chairman Federal Board of Revenue, Collector of Customs Appraisement East and others as respondents, petitioner pleaded the court may declare that act of the respondents in illegal, mala-fide and arbitrary.
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— Exclusive Customs Today photo
Central Region posts 9 percent growth in customs duty collection
LAHORE
M HAYAT
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ustoms Central Region has posted a growth of over 9 percent in collection of customs duty by collecting Rs7915 million against the target of Rs7511 million collected during the month of March 2019. The Central Region collected Rs7083 million showing a decline of 24 percent in the collection of sales tax during the month against the target of Rs9644 million. The Region collected Rs1722 million on account of withholding tax
Chief Collector Central Region Zeba Hai
against the target Rs1716 million for the month under review. Similarly the region collected Rs32 million on account of federal excise duty against the target of Rs 10.09 million for the month of March 2019. Overall the Region collected Rs16753 million on account of all duty and taxes for the month under review against the target of Rs18881 million. Meanwhile, Collectorate of Customs has posted a growth of 72 percent in collection of customs duty by collecting Rs2361 million against the collection of Rs 1419 million for the month of March 2019. The Collectorate collected Rs2232 million on account of sales
tax during the month of March against the target of Rs1971 million, posting a growth of 7 percent. The Collectorate collected Rs1189 million on account of withholding tax against the target of Rs1056 million during the period under review. The Collectorate collected Rs6.17 million against the monthly target of Rs2 million on account of federal excise duty during the month under review. It is necessary to mention here that during the month of March Collectorate of Customs Preventive showed outstanding performance and seized huge quantity of non-duty paid goods worth millions of rupees during different anti-smuggling operations.
Customs Court extends physical remand of suspects in smuggling case KARACHI
CUSTOMS TODAY REPORT www.customstoday.com
he Customs Court resent suspects namely Naveed son of Muhammad Haroon and Tariq Ali son of Muhammad Akram due to extension in their physical remand, who were allegedly involved in a case of attempting to smuggle non-duty paid Lux Bar soap, Pears transparent soap, betel nuts and other contraband goods. Investigation officer produced the above-named suspects along with first information report (FIR) and informed that on an actionable information, customs team raided a godown situated at plot no 270 No 5 Haroonabad, SITE, Karachi and found 84,000 pieces of Lux bar soap worth Rs2,069,760; Pears transparent soap 56,650 pieces worth Rs1,585,920; betel nuts 7060 kilograms worth Rs1,383, 760. He further informed the court that during the raid, suspects were asked to produce lawful documents, however, they failed to produce any lawful documents, therefore, after formalities, goods were seized and suspects were also taken into custody. He submitted that prosecution needs further investigation from them, therefore, court may send them to customs department on physical remand, after the hearing, court extended their physical remand and directed investigation officer to produce them on next date of hearing before this court. According to the prosecution, case was registered against them for violation of under Section 2(s), 156 (2) and 178 of Customs Act, 1969 punishable under Clauses 8 & 89 of Section 156 (1) ibid read with Section 3(1) of Imports & Export Control Act, 1950 complainant by Iftikhar Hussain Khan, Senior Preventive Officer of Customs House Karachi.
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Issues being faced by importers related to Afghan trade will be solved: Collector Ihsan C
PESHAWAR
CUSTOMS TODAY REPORT www.customstoday.com
ustoms Collectorate of Appraisement Collector Syed Ihsan Ali Shah assured importers to address their reservations over valuation of imports from Afghanistan. Collector Appraisment Syed Ihsan Ali Shah said that issues faced by importers relating Afghanistan will be solved and no query will be left unsolved. Collector Appraisement Syed Ihsan Ali Shah presided over meeting with local valuation
— Exclusive Customs Today photo
committee to discuss valuation of imported goods from Afghanistan in which the collector was briefed
about major issues being faced by the business community. Customs Collectorate Appraisment Peshawar
has been tasked to solve the issues of importers relating with Afghan trade due to which a meeting was called by the collector with local valuation committee. Local valuation committee meeting was also attended by Additional Collector Mohammad Ahsan Khan, Assistant Collector Torkham Sajjid Khan, chairman All Pakistan Commercial Exporter Association Manzoor Ilahi along with Zia Ul Haq Sarhadi and members valuation Nasir Khan Shinwari. In the meeting the collector customs thoroughly discussed the issues with committee relating imports from Afghanistan like fresh fruits ,dry fruits, vegetables and poultry.
www.customstoday.com APRIL 16 - APRIL 22, 2019
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SPECIALREPORT
ISLAMABAD
CUSTOMS TODAY REPORT www.customstoday.com
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Minister for Revenue Hammad Azhar reiterated that the next year and a half will prove to be a difRicult period for the country’s economy. The revenue minister said, “We the prime minister, Asad Umar, and myself have all been saying this. This is because the extent of the damage to the economy was such that time will be required in its recovery.” “We are told a lot that we must not keep referring to past mistakes and instead only talk about our own plan. When we are still suffering the after-effects of old economic policies, then how can we not talk about the past?” he asked. “The policies we are drafting now are directly related to redressal of the harm done, the effects of which are still being felt. This is why we refer to the past time and again,” he said. “A ship is drilling at a distance of 250 kilometres off of Karachi’s coast. There is no doubt that if gas reserves are discovered there, experts are of the opinion that it [the site] will be included among the world’s top ten reserves,” he said. “We have devalued the currency by 10.8pc. PML-N in the Rirst eight months of their tenure had devalued it by 10.1pc and in the last seven months had devalued it by 17pc,” he said. “Let me also go on to state for the record why we had to devalue the currency. When your foreign currency reserves in August are depleted to the extent that you cannot meet your
— Exclusive Customs Today photo
APRIL 16 - APRIL 22, 2019
short term liabilities, you cannot afford to throw billions of dollars into the market to defend an over-valued currency,” said the minister. Azhar went on to say that “today the value of the rupee stands closer to its real value.” “Looking at the media reports that are emerging which describe how the money was taken abroad and then brought back makes it abundantly clear that there is no discernible difference between the Omni Group case and the Hamza Shahbaz case.” Hammad Azhar has said trade deRicit of the country has shrunk by more than 37 percent during the last month as compared to current period of March last year. The minister said, “The trade deRicit of Pakistan fell by more than 37% in March 2019 over the same month last year,” adding that it is a very positive sign that the 5 year build up in external deRicits have now started reversing sharply. Economic stabilisation policies of PTI govt are bearing fruit. The minister of state said economic stabilization policies of PTI government are bearing fruit. Last month, Pakistan’s imports had seen a signiRicant decline of 19 percent, to $4.5 billion in January 2019, according to Rigures released by the statistics department. According to the department, Pakistan had imported items worth $5.57 billion in January 2018, while the amount of imports reduced to $2.04 billion in Jan 2019. The signiRicant decline in imports helped the trade deRicit to shrink by 31.73 percent to $2.46 billion in January 2019 as compared with $3.6 billion in the same month of the last year. While the exports grew by only 4 percent to $2.04 billion during the
month under review as compared to $1.96 billion in January 2018. He said that the tax amnesty scheme would be launched later this month, most probably through a presidential ordinance. He said a Rinal decision would be taken in this regard after the return of Finance Minister Asad Umer from the USA. "If we are unable to get time to sail through the scheme from the Parliament, an ordinance would be promulgated. The scheme would be presented before the federal cabinet for approval." He said the data on the Dubai offshore properties is being compiled by the Federal Investigation Agency (FIA). As soon as Federal Board of Revenue (FBR) will receive information, FBR will start issuing notices to the owners of undeclared properties in the UAE. Responding to a query on the Benami law, he said FBR has started issuing notices to owners of benami properties under the Benami law on a daily basis. To another question, he said modalities will be Rinalized when IMF staff mission will visit Pakistan to Rinalise the programme. Answering a question, he stated that the government has not committed to the IMF that it would increase tax rates. About massive revenue shortfall in FBR collections, he said the FBR collected 40 percent of its total revenue at the import stage and now the imports are moving in negative direction. "Due to this we are not getting growth in revenue. However, there is an increase of 3 percent in revenue collection during current Riscal year if compared with the last
Riscal," he said. A shortfall in revenue collection has been witnessed if compared to the assigned targets. The non-Rilers' data has been integrated with the help of information available with the FBR, State Bank of Pakistan (SBP) and FIA to bring non-Rilers into the tax net. Azhar said the economic indicators are moving in the right direction due to meticulous steps taken by the government. He said the government is correcting the course of economy that was destroyed by the previous government. He asserted that economic situations are improving and if Federal Board of Revenue (FBR) does not show performance then big steps could be taken.
has been a t a d ' s r e l fi ‘Non help of h t i w d e t a r g inte ailable v a n o i t a m r o inf and FIA t P B S , R B F h wit into th s r e l fi n o n g brin tax net’
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APRIL 16 - APRIL 22, 2019
SPECIALREPORT 07
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08 EDITORIAL
APRIL 16 - APRIL 22, 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
IMF on Pak policies
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n its latest report the International Monetary Fund (IMF) has projected debt and Gross Domestic Product (GDP) growth figures based on existing policies of the Khan administration that should have rung warning bells on the outcome of the appropriateness of the surgery on the economy claimed by Finance Minister Asad Umar as well as on the narrowing gap between the government and the Fund with respect to specific conditions of the yet to be negotiated bailout package. The report's contention that Pakistan's budget deficit is 2.5 percentage points higher than budgeted indicates the extent of the lack of credibility of our budget data. In this context, it is relevant to note that while the PML-N government's April 2018 budget projected a deficit of 4.9 percent, a forecast widely believed to be overoptimistic given that 2018 was an election year, yet, disturbingly, the PTI government in spite of presenting two supplementary finance bills 2019 did not bother to readjust or restate the budget deficit based on altered expenditure and revenue measures. Additionally, the first amendment bill envisaged revenue generation from sources that were suspect, particularly the over 70 billion rupees from technological improvements, a view based on failure of previous attempts in this regard. The second amendment bill envisaged higher expenditure, to jumpstart the stalled industrial sector, which again has so far not borne any fruit. That there may be a lag between policy implementation and results is perhaps relevant; however it is unlikely that this period would be less than six months, or well after the end of the current fiscal year. The Fund has forecast a budget deficit of 7.2 percent at least for the current year (though based on its assessment of 2.5 percent higher than budgeted the deficit should be 7.4 percent). The budget deficit for 2018-19, as opposed to the current account deficit, is attributable to the present administration's economic policies principally because the Khan administration took oath on 20 August last year and, barring the passage of two months (July, August), could have taken the trouble to formulate and present a detailed budget. This estimate is close to State Bank of Pakistan's (SBP's) upper projection for the first six months of the current year of 6 to 7 percent. One would assume that the additional expenditure envisaged in the second supplementary bill raised the deficit estimate beyond 7 percent. Pakistan's gross debt is projected to rise from 72.1 percent of GDP in 2018 to 77 percent this year and to 79.1 percent next year while net debt is projected to rise from 67.2 percent last year to 72.2 percent of GDP this year and 75.3 percent next year.
World Bank's assessment of Pakistan economy M LAHORE
CUSTOMS TODAY REPORT www.customstoday.com
ultilateral Rinancial institutions continue to be quite pessimistic about the prospects of Pakistan's economy. In its latest edition of the South Asia Economic Focus report, the World Bank has estimated that Pakistan's economic growth rate is expected to decelerate to 3.4 percent in FY19 and further to 2.7 percent during FY20, as Riscal and monetary policies are tightened to address macroeconomic imbalances. Domestic demand is expected to contract, while export growth will be gradual. On the supply side, services sector is projected to decline by 4.4 percent and agriculture and industry sectors will grow signiRicantly lower in FY19
and FY20. The economic growth is expected to recover to 4 percent in FY21 as structural reforms take effect and macroeconomic conditions improve. Pakistan's trade deRicit has been projected to remain high during FY19 but would narrow in FY20 and FY21 as the impact of currency depreciation, domestic demand compression, and other regulatory measures to curb imports take hold. The latest edition of "South Asia Economic Focus" released by the World Bank is a very good commentary on economic prospects in the South Asia region and shows quite clearly where the Pakistan's economy is headed to in the foreseeable future. Overall, the report seems to be satisRied with the growth prospects of the region but is concerned about the external sector prospects of vari-
ous countries in the region. The report says that the region's growth "while still robust" is mainly driven by domestic demand which swells imports and far outstrips exports, further widening trade gaps and current account deRicits, triggering currency depreciation in certain countries. Despite some recent progress, South Asian countries' exports are only one-third of their potential and the gap between exports and imports is widening. South Asia has not fully taken advantage of a favourable international trade environment but remains on the margins of global value chains. The case of Pakistan in the South Asian region is particularly disturbing. While other countries of the region are growing at a very handsome rates and their exports potential still need to be fully realised, Pakistan's
growth as well as other economic indicators are deteriorating. The situation seems to have worsened to an extent that the country's Finance Minister himself is said to have stated that Pakistan is going through an economic crisis and we are near bankruptcy. As it is, Pakistan's economy has not only hit the rock-bottom in terms of growth but the Riscal deRicit is about to hit more than 6 percent of GDP and inRlation is at its highest in Rive and half years and likely to go up further to double-digit Rigure. Circular debt continues to rise and interest rates are also going up making the cost of business even more uncompetitive. Prime Minister Imran Khan has announced the biggest and boldest poverty alleviation programme called 'Ehsaas' in the history of Pakistan when there are no funds in the kitty to Rinance it.
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NATIONAL 09
APRIL 16 - APRIL 22, 2019
LHC summons commissioner FBR in tax refund case
LAHORE: LHC has issued notice to Commissioner Inland Revenue Muhammad Irfan Raza to appear in person before the court. The petition was filed by a former employee of the Punjab government in tax refund case. A contempt petition was filed through Advocate Waheed Shahzad Butt against chairman FBR and minister of state for revenue, Muhammad Irfan Raza, commissioner Inland Revenue presently working as director internal audit. Petitioner mentioned that FBR) officers are not implementing order passed by the LHC wherein it was directed to refund the amount of the petitioner.
I&I-IRlodgesFIR againstSalar Enterprises&othersin moneylaunderingcase
NAB starts probe into Rs933 million Faisalabad dry port scam
KARACHI
ISLAMABAD
M.B RANA
www.customstoday.com irectorate of Intelligence & Investigation Inland Revenue lodged first information report against proprietor of M/S Salar Enterprises & M/S Salar Mining Enterprises and others booked in using benami six accounts to conduct business and evaded taxes more than Rs1 billion and also involved in money laundering. Investigation officer submitted first information report against suspects namely Zor Talab Khan, Umara Khan, Muhammad Hassan and Muhammad Hamza and informed that six bank accounts were opened by suspect Zor Talab Khan during June 14, 2012 to July 13, 2017 and total amount transited Rs8.497 billion.When prosecution issued notice to suspect ZorTalab Khan he replied that he was totally unaware of the bank accounts and these bank accounts were being used by his friends and these people obtained his CNIC under some pretexts and opened these accounts and conducted these transactions and he was never told that they are illegally using these bank accounts for evading taxes. He further submitted that during the investigation, it was revealed that the above-mentioned suspects have obtained tax exemption certificates from deputy commissioner Buner a tax free area with the totally unrelated counter parties, multiple transactions have been done with totally irrelevant parties such as paint shop, transporter, oil business, spare parts, scrap business and electrics goods etc, which indicates that marble business registration and fake exemption certificates are only smokescreen from tax evasion by doing non declared business and by using these benami accounts.
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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
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he National Accountability Bureau (NAB) has started its investigation into the Rs933 million Faisalabad dry port scam, sources revealed. The Federal Tax Ombudsman (FTO) had recommended NAB Lahore to take up the Faisalabad dry port matter based on an inquiry report submitted by the tax department. The tax department had conducted an inquiry into matters pertaining to import clearances through Faisalabad dry port during the period from November 17, 2011, to August 11, 2013. The tax ofRicials, in their Rindings, revealed that the commercial counsellors and the shipping lines, in order to reconcile the export and import declarations/documents, did not realize in the given timeline. The fractional retrieval of the same resulted in partial variation of under-invoicing, mis-declaration and presentation of forged invoices. On the basis of this fractional information, a short paid amount of duty and taxes amounting to Rs441,434 was detected in GD number FDRY-HC-773 dated 29.11.2012. Furthermore, the commercial counsellor posted in Germany informed that an invoice presented in GD number FDRY-HC1105 dated 08-06-2012 was prima facie found bogus. In addition, the tax department
stated in the report that the scrutiny of clearance data, in the absence of factual reporting, transpired that imported goods were misclassiRied, resulting in short payment of duty/taxes amounting to Rs36,435,831. Through this misclassiRication, the items, including juice extractor, bakery roaster, coffee machine and medical equipment, imported in old and used condition, were released, which were otherwise not importable in terms of Serial 9 & 12 of Import Policy Order 2009 in vogue at that time. The report stated that the aforementioned Rindings were interim and could not be concluded due to the fact that veriRication from all quarters could not be received due to time-bound exercise. The audit team tried its level best to probe the prior import
veriRications by calling export documents from the country of origin through commercial counsellors/shipping lines and simultaneously the post-release veriRication of sale of imported goods by calling sales tax invoices & sales tax returns from the importers. However, no one turned up to provide complete information. The report stated that the customs ofRicials had also received a response from six commercial consulates based in Canada, France, Germany, Korea, Netherland, Singapore and UAE. Commercial consulates based in France, Germany and Netherland shared that companies ‘Damstra INstallatietechneik’ and ‘Rai Enterprises’ had under-invoiced the value by $6,500. Similarly, a company ‘All Power
Solutions’ also showed involvement in under-invoicing. Moreover, documents of another company ‘Shahzad Enterprises’ showed that the record was not traceable. The only available option with the audit team was to scrutinize the available record, critically examine the examination reports, allied reported facts as per invoice, packing list, goods declaration, and laboratory test reports in the absence of the goods, which were released and consumed during the year 2012-13. The committee stated that in order to make the report productive, the committee was of the considered opinion that MCC Faisalabad may determine negligence of the ofRicers/ofRicials responsible for the revenue loss to the tune of Rs85.12 billion, the report added. On the other hand, one ofRicial of the tax department, who was part of the forensic team, stated that the forensic audit team had concealed facts and withheld the Rindings to suppress crime and save the criminals in its forensic audit report. He had requested to treat the forensic report as invalid and the same may be returned to the audit team for examining of documentary evidence of the scam which was available with the undersigned, and to resubmit the report after supplying its deRiciencies, removing its circumventions and eliminating its evasiveness. It is pertinent to mention that FBR member Shuakat Ali was the Faisalabad collector during the period when the clearance of goods was made.
ICCI calls for support to enhance industrial capacity To,
Mr. Razak Dawood, Advisor for Commerce, Got of Pakistan, Islamabad Dear Sir,
I appeal you that the government should extend full support to industrial sector in enhancing its production capacity that would go a long way in increasing country’s exports and revenue. The lack of investment was a major factor due to which industry could not produce efRiciently to meet the global standards. The current government has made strenuous efforts to increase exports from the existing capacities of industry and boost revenues, but this strategy has not produced desired results so far.
There was a dire need to increase investment in industrial sector for enhancing its capacity for producing high quality and value added exportable products. Pakistan’s exports remained stagnant from 2012-13 despite the fact that many incentive schemes
and subsidies were offered to industry to boost exports. However, these initiatives have not been able to bring any signiRicant increase in exports. Rupee has depreciated by over 30 percent, but still exports of Rive major sectors have not shown any signiRicant improvement.
This situation called for conducting a thorough analysis to Rind out the reasons behind stagnant exports. Government should focus on reducing high energy cost and power tariffs and rationalize federal and provincial taxes on industrial sector that would be instrumental in improving exports and revenue. I suggest that government should give land on lease for 30-50 years to serious investors so that they could establish state-of-the-art industries. Long-term loans should be provided at subsidized rates to investors with the aim to promote industrialization in the country. Yours sincerely,
Ahmed Hasan Mughal, President ICCI, Islamabad
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10 NATIONAL
APRIL 16 - APRIL 22, 2019
Peshawar Customs collects Rs1685m during March
PESHAWAR: Collectorate 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.
‘Maersk, QICT blackmailing importers to pay extra demurrage, detention charges’ MULTAN
IMRAN ALI KHAN
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— Exclusive Customs Today photo
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ustoms clearance of import shipments has become a constant headache for importers due to blackmailing of M/s Maersk Pakistan Pvt. Ltd. and Qasim International Container Terminal (QICT) for collection of unjustiRied demurrage and detention charges. This shipping company is violating set rules and laws with cooperation of the port terminal by forcing importers to pay additional charges under the head of demurrage and detention on clearance of shipments. It was stated by importer and former President of Multan Chamber of Commerce and Industry Malik Israr Ahmad about illegal demurrage and detention charges from importers. He said that collection of unjustiRied demurrage and detention charges from importers on clearance of import shipments is creating risks and increasing costs for business community at Qasim International Container Terminal. Business community is still facing huge challenges in the import of raw materials and export of Rinished goods due to intentional delay from the port terminal and the above-mentioned shipping company. Unnecessary delay in the clearance of shipments causes heavy losses to importers and raise business cost. This shipping company has close nexus with Port terminal and they deliberately slow down the clearance
process of shipments to generate additional revenue from importers and exporters. He said that business community along with their clearing agents has raised issue of unnecessary delay in the clearance of shipments by the port terminal and the shipping company for the
Malik Israr Ahmad generation of unfair demurrage and detention charges because it creates huge obstacles in the smoother trade for genuine importers. The shipping company Maersk Pakistan is charging illegal demurrage and detention charges from importers but government has
not taken any serious action against them. Importers are trapped by offering fake discounts through their agents but then Maersk and the QICT demand exorbitant charges under the head of demurrage and detention charges along with their standard duties. He said
that incumbent rupee devaluation has also enhanced cost of raw materials used in the manufacturing of Rinished goods. Importers faced unnecessary delay and discriminatory behaviour from the shipping company and port terminal which inserts negative impact on productivity and efRiciency due to inevitable time lag between the purchase of inputs and delivery of Rinished products and it also creates additional currency risk. Business community is unable to deal with devaluation of currency in the present unstable market condition due to needless delay in clearance of shipments for the collection of demurrage and detention charges. Poor clearance services from Shipping Company Maersk Pakistan and QICT are also creating delay in the delivery of Rinished goods in given time which erodes customer trust and impacts the business negatively. Developed countries have a reliable logistics service provider which helps importers in whole supply chain process to transport shipments to local, regional and international customers without any hurdle. But we face complicated clearance procedure, excessive delay and blackmailing from Maersk Pakistan and QICT for collection of baseless demurrage and detention charges. He appealed from Government to remove logistic hurdles by regulating shipping companies which will create potential business opportunities in the country and stop M/s Maersk Pakistan and QICT from collection of baseless demurrage and detention charges from genuine importers.
FBR to start survey from April 15 to introduce single tax return reform T
ISLAMABAD
CUSTOMS TODAY REPORT www.customstoday.com
he federal government has decided to begin a survey on April 15 in Punjab with the aim to introduce single tax return reform, making the federal and provincial taxes consistent. A decision has also been made to make the Federal Board of Revenue’s (FBR) Directorate General for Special Measures operational. Federal Board of Revenue Inland Revenue Policy Member Hamid Ateeq Sarwar has specified professional responsibilities of the department, in addition to saying that the data collected in
the federal government’s Punjab survey will be shared with the Federal Board of Revenue and its various departments to enable action against those evading tax, which the directorate general will also monitor. The other objective of the move is to trace the richest non-filers and for the sales tax registration of non-registered manufacturers’ units. The directorate general will also trace those not paying income tax and will prepare a profile of non-filers. It will prepare the profiles of the wealthiest people who, despite possessing huge sums of money, neither have an NTN nor submit returns. Additionally, the entity will
register large institutions along with the number of their employees and the amount of electricity they use. As part from the decision to make the directorate general operational, two vacancies, one of Grade 21 and the other of Grade 19, are to be created in the Inland Revenue Service in addition to arranging staff for the purpose. A summary to create the new posts has been sent for approval and estimations for a separate budget for the payment of employees’ salaries and allowances as well as the fulfillment of various expenses are being prepared. The approval of a separate budget for the department in the 2019-20
federal budget will also be sought and funds allocated. Meanwhile, Federal Board of Revenue (FBR) took serious notice of non-examination and weighing of outgoing and incoming subcontracting goods by the Customs Collectorate Export Port Qasim Karachi and directed the Collectorate to take action against the responsible for the lapse. According to standing order No. 2/87 (P), the outgoing and incoming subcontracting goods should be examined and verified by the gate staff of the Collectorate. Federal Board of Revenue observed that Customs Export Port Qasim, Karachi allowed investors to remove the goods from zone
to tariff area for further processing by way of subcontracting. The Collectorate at the time of outgoing and incoming neither properly examined and counted the goods nor measured weight of the consignments, but just reproduced the contents of gate passes on the note sheets of the files. In 90 percent cases, the weighment slips were not available in the files and the material and goods were packed without any consistent method. Federal Board of Revenue has directed the chief collector to ensure necessary provision in the rules for weighment slips of the outgoing and incoming goods, besides fixing responsibility for the lapse.
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CARTOONSSPECIAL 11
APRIL 16 - APRIL 22, 2019
Customs ASO foils bid to smuggle new tyres to Afghanistan
KARACHI: Collectorate of Customs Preventive Anti-Smuggling Organization (ASO) has unearthed smuggling of new tyres bearing Afghan transit stamp of Karachi in transit to Afghanistan after a successful raid. According to the details, on the tip-off by higher authority, the team of ASO during surveillance intercepted two containers bearing no. FCIU-5126218 and HJCU-2289472 loaded on a Hino truck bearing registration No. PT 005 at Ghagghar Phattak Chowk Point near Eastern Sector.
Multan Customs seizes contraband goods worth Rs20 million from Cantonment area MULTAN
IMRAN ALI KHAN
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ollectorate of Customs seized the huge quantity of contraband items worth Rs20 million during raid in a shop and private warehouse located in the Cantonment area. Sources told Customs Today that Collector Ambreen Ahmad Tarar received credible information that bulk quantity of contraband smuggled goods were hidden in private warehouse located in the Cantonment region near Dhobi Mohallah. The collector formed special team on the basis of certain information which comprised Inspector Waqas Lehari, Inspector Saleem Khan, Inspector Muhammad Asif Sindhu and others to take action against smuggled goods. Customs anti-smuggling squad raided the Uppel Shaheed Road Cantonment where they found huge quantity of smuggled goods which were dumped in the house located in the congested area of Cantt.
Smugglers were used to supply these smuggled goods to different retailers of South Punjab especially in Multan. Multan Customs cordoned out the said streets during their
anti-smuggling action to avoid any unwanted situation. Local police were also called to avoid any clash during action. Customs teams found foreign origin cigarettes, Pan Parag, gutka,
betel nuts, chewing, tobaccos and other goods which were lying in the private warehouse. AntiSmuggling team’s recovered huge quantity of contraband items from Ameer Khan Shop during action. It
Quetta Customs recovers huge quantity of smuggled Iranian diesel
was revealed during the initial investigations of customs anti-smuggling team that these non-duties paid dumped goods were in the possession of alleged Ameer Khan Pan Shop owner.
Faisalabad Appraisement collects Rs7656.384m in eight months FAISALABAD
NAMEEM SHEIKH www.customstoday.com
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QUETTA
TARIQ DERYA
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ollectorate of Customs team with effective coordination of Customs Hyderabad recovered 75,000 liters non-duty paid Iranian High Speed Diesel (HSD) from different petrol pumps established illegally. Sources told Customs Today that Chief Collector ZulRiqar Ali Chaudhary received credible in-
formation about some petrol pumps operating illegally and supplying smuggled diesel. He passed on the above said information to Collector Preventive Iftikhar Ahmad and Collector Hyderabad Khalid Jamali. An anti-smuggling squad was constituted under the supervision of Assistant Collector Akmal Baloch and Deputy Collector Hyderabad Kaleemullah Wagan. The team destroyed eight illegal petrol pumps and recovered 75,000 Iranian diesel
worth millions of rupees. Sources told that owners of these petrol pumps tried to create hurdles but they were dealt with iron hands. Customs team after registering a case against the owners of these petrol pumps started investigations. Sources told that during another operation customs teams successfully recovered 32,000 petrol. The squad was comprising Inspector Ghulam Hussain Khoso, Naseer Shaheen, Masroor Mengal, Mosam Khan.
ollectorate of Customs Appraisement collected Rs7656.384 million against assigned target of Rs11579.27 million during the first eight months of the current fiscal year. Sources told Customs Today that the Collectorate collected Rs3073.338 million under the head of customs duty against the set target of Rs3386 million and achieved its target by 90.8 percent only. Under the head of sales tax the appraisement collected Rs4440.38 million against the target of Rs8080 million. It surpassed its target by 55 percent during the said period. Furthermore it collected Rs143.246 million against Rs113 million under the head of income tax by achieving its target up to 126.8 percent. The Collectorate also generated Rs 0.165 million against Rs 0.27 million under the head of federal excise duty during the said period.
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12
APRIL 16 - APRIL 22, 2019
Faisalabad I&I seizes silk cloth worth Rs5m
FAISALABAD: Directorate of Customs Intelligence and Investigation team seized smuggled foreign origin art silk cloth 180 kilograms worth Rs5 million from a Bedford truck near Gatwala Toll Plaza. Sources told Customs Today that Deputy Director Khial Muhammad on a tip off constituted a special team under the supervision of Superintendent Muhammad Tahir Iqbal to foil the smuggling bid and deployed it on the Sheikhupura Road. The team on suspicion intercepted Bedford truck bearing registration number: SAC-9275 and recovered huge quantity of smuggled ladies art silk cloth.
‘Govt should take action against Maersk, QICT for collecting illegal charges’ LAHORE
M.I.MEHAR
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— Exclusive Customs Today photo
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akistan’s famous businessman, importer and exporter of fans, washing machines and other relevant items from Gujrat, Salman Nasar has said that government should take strict action against shipping company M/s Maersk Pakistan Pvt Ltd and terminal operator QICT which are involved in the collection of exorbitant charges such as demurrage and detention charges for the clearance of shipments from genuine importers. These shipping companies are spoiling business environment due to their blackmailing at port by collecting unjustiRied demurrage and detention charges for the clearance of legitimate shipments. Senior businessman Salman Nasar who is expanding his business in USA said in his exclusive talk with Customs Today that he is worried about increasing expenses on ports of Pakistan. He said that fans and washing machines industry is big export industry of Pakistan but ‘we are facing problems in Pakistan’. He said that SRO 1220(I)/ 2015 explains that shipping companies cannot charge any demurrage and detention where speciRically it is not agreed and also speciRically not mentioned on the B/L (Bill of lading) but these companies are compelling genuine importers to pay excess charges in shape of detention charges. These shipping companies and terminal operator are operating like a maRia and they create unnecessary delays in the clearance of shipments by making lame excuses. Even those importers
are blackmailed which are already issued delay and detention certiRi-
Senior businessman Salman Nasar
cate by Customs. He added that collection of demurrage and
detention charges from importers without any speciRied agreement is
unfair. According to section 14-A of the Customs Act, 1969, importer cannot be forced to pay any demurrage or detention charges if Customs gave a certiRicate to importer called the ‘delay and detention certiRicate’. But despite this certiRicate, importers’ goods are held illegally to demand heavy amounts as demurrage. He said that shipping line M/s Maersk Pakistan and the QICT are blackmailing importers for the clearance of their shipments, and collection of demurrage and detention charges from importers is intolerable as importers are facing huge obstacles in the clearance of their shipments on time due to their blackmailing. He said that importers and exporters of Gujrat contribute huge portion of revenue in wake of taxes to Federal Board of Revenue, and the government. Illegal collection of demurrage and detention charges create serious business crisis in the region for importers and exporters for the clearance of shipments. He said that these shipping companies are robbing huge revenue from importers by offering them discount at the initial stage but when the shipment reaches at port they demand additional charges without any reason. He said that these shipping companies are collecting unfair demurrage or detention charges from importers by violating set laws. He demanded from Pakistan government to take action against abovementioned shipping company and QICT which are involved in charging extra charges and they should be punished under rules 603(q), 603(r), 604(p), 604(q) & 607(e), others under SRO 1220/2015.
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KARACHI
TARIQ DERYA
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ollectorate of Customs Appraisement West Additional Collector Zubair Shah said that extension in period to clear stuck-up goods in warehouses through SRO 434(1) is a good step as this SRO will allow traders to clear there consignments without paying any surcharge. Amnesty scheme announced by federal government for importers will boost confidence of business community Talking with Customs Today,
the additional collector said that in order to facilitate the trade and to alleviate the problems of importers due to stuck-up goods, the Federal Board of Revenue (FBR) has issued notification No SRO 434(1) 2009, adding that “this act of present government will help earn more revenue while business community will also be facilitated through above-said notification’. He said this notification is initiated after period of 6 years but this is a routine practice. He added that these types of SROs appear after 5 to 6 years which facilitates business community.
— Exclusive Customs Today photo
Allowing clearance of struck-up consignments will enhance confidence of traders: ADC Zubair Shah
ADC Zubair Shah
According to SRO 434(1) issued on 8th April 2019 notifies that whereby waiver/remission of penal surcharge has been allowed on all warehouses consignments which are cleared during the period starting 8th April 2019 and ending on 13th April 2019. Additional Collector Zubair Shah said that newly announced tax amnesty scheme will put positive impact on national economy. He said that this is the last chance for tax evaders to legalise their wealth. He said that amnesty scheme is being lunched to expand tax net and
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generate revenue. He said that business community was demanding for tax amnesty scheme so they should avail this opportunity to become taxpayers. He said that clearance procedure is also being simplified. Notably the scheme for waver of penal surcharge has been introduced after a period of six years, the scheme of waiver of penal surcharge is a special relief measure for the business community as clearance of overstayed goods attract penal surcharge, which adds to their financial cost.