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PAKISTAN’S FIRST INDEPTH NEWSPAPER ON CUSTOMS
26 ABC Certified Vol 75 Issue No. 11
Karachi, Tue Nov 06 - Mon Nov 12, 2018
Weekly Weekly
Regd. No, MC-1381
Price Rs. 50.00
TAKING EXTRA DETENTION
NAB must act to stop Maersk Shipping Line for taking extra detention charges, says by Minister Taimur Jhagra. | SEE PAGE 12 | EXPANDING TAX NET
FBR Chairman Jehanzeb Khan called for aligning ways to broaden tax net through data integration. | SEE PAGE 03 | ERADICATING TAX EVASION
Director I&I Asalan assigned task to dig out tax evasion cases which caused huge losses to exchequer. | SEE PAGE 04 | GENERATING REVENUE
CollectorJamilNasir’s Collectorateof CustomsAppraisementrecovered recordamountinwakeoftaxesin October2018. | SEE PAGE 09 |
KARACHI
ASAD KHARAL
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akistan’s biggest ever fraud of sales tax is unearthed where Maersk shipping line has evaded billions of rupees sales tax in terms of services provided to its local clients whereby businessmen of Pakistan have appealed to NAB and FIA to intervene and investigate connivance of Maersk and Sindh Revenue Board in the alleged mega scandal. According to details, Maersk shipping line is issuing ‘benaami’ bills without sales tax numbers, without publishing its own name on the bills and giving its sales tax numbers. As per its modus operandi, Maersk sends emails in the name of Helen De Isidero to its clients whereas it is actually sent by Mr. Maqsud through Pakistan email ID pk.import@maersk.com. Maersk Pakistan employees themselves claim that Helen works in their Manila ofQice while the email is sent from Pakistan ofQice. Furthermore, all services are provided in Pakistan through Pakistan company M/s Maersk Pakistan Pvt. Ltd. but the company tries to show that services are provided by foreign company and their employees through using
dummy names. When service provided in Pakistan by Pakistan ofQice and Pakistan employees then how can sales tax on such service remain unpaid? This obviously is a fraud to evade huge sales tax liabilities. Sources said Sindh Revenue Board had detected this fraud but someone very senior called them and asked them not to proceed against Maersk Line. Relevant quarters say that Commissioner II of the Sindh Revenue Board was bound by the NotiQication No. 3-4/20/2017 to collect sales tax on services from the shipping lines as mentioned in point 15 of the table which is also available on the ofQicial website of Sindh Revenue Board h t t p : / / w w w. s r b . g o s . p k / contents/NotiQications/SRB-34.20.2017.PDF Business community says that Commissioner II, instead of keeping mum over the issue, should fulQil his duties and collect sales tax from the Maersk Pakistan and also recover the evaded sales tax worth billions and also lodge FIR against the Maersk ofQicials for the huge scam so that others do not commit such criminal evasion of sales taxes. Such funds so collected will go a long way in developing our country. According to another document of Sindh Revenue Board named Working Tariff (amended up to 4th December, 2017), the shipping lines are
boundtopayatleast13%salestaxon services as mentioned in table which is also available on its ofQicial website http://www.srb.gos.pk/contents/Do wnloads/20171204007_WORKING_TARIFF_AMENDED_2017.pdf On the other hand, when Customs Today tried to contact Maersk Pakistan’s high-ups on their ofQice numbers to take their view point on the story, they avoided to give answers to speciQic questions. Businessmen who have been looted by Maersk have asked the National Accountability Bureau (NAB) and the Federal Investigative Agency (FIA) to investigate this sales tax fraud and the role of SRB in helping Maersk do the massive fraud. It is pertinent to mention here that the NAB and the FIA already received a complaint seeking probe to ascertain role of employees of Maersk Line in country’s biggest shipping scandal involving 610 billion rupees. Importers lodged application against Maersk Line and its subsidiary in Pakistan Maersk Pakistan (Pvt) Ltd for conspiracy, cheating and criminal breach of trust under PPC 407, 409, 420, 427, 506 and others so that these fraudsters are stopped to blackmail genuine importers by demanding ‘illegal’ demurrage and detention charges. The complaint received by
the NAB and the FIA 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 Maersk Line and M/s Maersk Pakistan (Pvt) Ltd including Søren Skou, Claus V. Hemmingsen, Søren Toft, Vincent Clercp, Morten H. Engelstoft, others of Maersk Line and Arslan Khan, Hazanfar Khan, Raheel Salim, Maqsood Ul Hasan Khan, Fuad Khan, Hasan Faraz, Shakeel Masih, Omer Khan, Ali Jawad Alvi, Zafar Iqbal, Ayesha Chowdhry, Zahid Hussain, Salman Ahmad, Aamir Ali, Umais Aziz Khan, Mohammed Naeem, Farheen Mahmud, Mubasshar Iqbal, Affaq Syed, Syed Mohammad Abbas Jafri, Muhammad Tanveer Sharif, Salman Ateeq, Hamza Haq, Ziad Mahboob, Aamir Ibrahim, Yasir Saeed Khan, Amal Sadiq Dawood, Effat Mehmood, Maria Urooj, Zain Warsi, Mehreen Zulfiqar, Awais Saleem, Zafar Iqbal, Syed Osman Iqbal Zaidi, Anum Yaqub, Fahad Ali, Obaid Iqbal, Zahid Hussain, Muhammad Ali Qureshi, Danish Siddiqui, Amir Arif, Arshad Ayub, Syed Mudassir Ali, Syed Hammad Hussain, Ayesha Qadri, Sheikh Samiullah, others of M/S Maersk Pakistan Private Limited.
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NATIONAL
NOveMBeR 06 - NOveMBeR 12, 2018
M/s Wallmaster moves SHC for restraining order for security amounts
KARACHI: The SHC issued notices to the customs officials and deputy attorney general on petition filed by M/s Wallmaster through its proprietor Junaid Kapadia seeking restraining order for encashment of security amounts. During the hearing of petition, a two-member bench, headed by Justice Aqeel Ahmed Abbasi also directed them to file their para wise comments on next date of hearing. Counsel for the petitioner stated that petitioner imported two consignments of wallpapers from China and filed Goods Declaration (GD) with Customs Appraisement West.
AsadUmardirectsFBR, SBP to ensure timely accomplishment of FATF action plan
MUJ expresses deep concerns over threats being hurled by Maersk line
ISLAMABAD
MULTAN
MUHAMMAD FAIZAN www.customstoday.com
IMRAN ALI KHAN
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inance Minister Asad Umar directed the Federal Board of Revenue (FBR), State Bank of Pakistan (SBP) and all concerned departments to implement the international Anti-Money Laundering and Counter Terrorism Financing standards and take all required action to strengthen the regime. Sources told Customs Today that the Finance Minister chaired a meeting to review progress on FATF Action Plan and APG assessment. Director General Financial Monitoring Unit (FMU) briefed the minister about the actions taken so far on both FATF Action plan and APG assessment. The minister emphasized the need to enhance level of institutional coordination to ensure timely accomplishment of FATF action plan.
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Customs earns 122% extra revenue during October ISLAMABAD
CUSTOMS TODAY REPORT www.customstoday.com
ollectorate of Customs earned 122% extra revenue against assigned revenue collection target under all heads during month of October of Fiscal Year 2018-19. Deputy Collector Headquarters Majid Hussain Gadd told Customs Today that under guidance of Collector Zulfiqar Ali Chaudhry ,the Collectorate earned Rs2380 million of revenue under all heads against allocated target of Rs1952 million he added that MCC received Rs428 million extra collection during the above said period. Gaad said that during the month of October, the Collectorate received Rs728 million under head of customs duty against allocated revenue target of Rs699 million whereas the Collectorate received Rs1115 million under head of sales tax the Collectorate received Rs892 million. He added that the MCC received 125% extra revenue under head of sales tax against assigned revenue collection target. It is necessary to mention here that MCC Islamabad earned Rs953 million extra revenue under all heads against assigned revenue collection target for July.
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— Exclusive Customs Today photo
Finance Minister Asad Umar
President Multan Union of Journalists Abdul Rauf Maan unscrupulous persons who wrote letters to media houses and newspapers on Maersk letter heads to hush up the Rs.15 billion for exposing demurrage and detention scam. He demanded from government of Pakistan and departments concerned to take strict action against Maersk line for protection of journalists. According to reports of United Nation that Pakistan is the most dangerous country for journalists but government has not taken any step for the protection of journalist
to ensure freedom of press and journalist are still facing huge security risks in the country by probing corrupt practices. He said that life threats to media houses and journalists were impediments to serious journalism but we will continue our professional efforts for provision of actual facts to ensure freedom of expression. It is pertinent to mention here that the NAB and the FIA already received a complaint seeking probe to ascertain role of employees of Maersk Line in country’s biggest
Customs, Pemra & FIA hold meeting to finalise strategy A
ISLAMABAD
TARIQ DERYA
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high-level meeting held at Federal Investigation Agency (FIA) ofQice where representatives of Customs, Pemra and FIA participated and devised a strategy to start crackdown against the Indian-origin smuggled DTH equipment being used for viewing Indian channels. OfQicial sources told Customs Today that the Chief Justice of Pakistan has taken strict notice on the availability/illegal sale in open market of Direct to Home (DTH) equipment used to broadcast Indian channels and transfer of money charged against these services abroad through illegal channels. The sources added that the court has directed to take immediate
— Exclusive Customs Today photo
— Exclusive Customs Today photo
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ultan Union of Journalist (MUJ) expressed deep concerns over threats being hurled to journalists and media houses for highlighting alleged mega scam by Maersk Line for charging exorbitant demurrage and detention charges from importers on clearance of their shipments. This was stated by President Multan Union of Journalist Abdul Rauf Maan in an exclusive interview with Customs Today the other day. He told that government should provide adequate and meaningful security to media houses, journalists and newspapers and take strict action against the culprits who threaten media for reporting irregularities of shipping companies involved in illegal collection of detention and demurrage charges. Threats to media for enlightening facts against corruption of Maersk Line aimed at deterring the ability of the press to report the truth and restrict access to information. He said that media is the fourth pillar of the state for providing transparent information with neutrality. Media plays the role of a bridge between the people and government by highlighting Qlaws in the society. He thought that journalism has never been more dangerous than today due to growing intolerance in the society and journalists have never felt more unsafe before for reporting actual facts. He appealed to whole media including print and electronic in Pakistan to stay united against
Member Customs Zahid Khokhar
action to stop the availability of illegal DTH equipment in local markets along with identiQication of sources from where such equipment are being brought into the country. The sources told that in this regard, a committee comprising of
Member Customs Zahid Khokhar, Additional Director Federal Investigation Agency (FIA) and Director General (DG) Pemra has been constituted by the SC to submit report for the action taken within 10 days. Sources added that in view of that a meeting was held in DG (FIA) ofQice where representatives of Pemra and Customs were also present. In the meeting, it was decided to immediately launch crackdown against the illegal DTH equipment available in national level electronic market through the joint operations. It is directed to coordinate with representative focal nominated ofQicers of FIA and Pemra in their respective jurisdictions and initiate immediate enforcement actions in coordination with other law enforcement agencies to seize the illegal smuggled DTH equipment.
shipping scandal involving 610 billion rupees. Importers lodged application against Maersk Line and its subsidiary in Pakistan Maersk Pakistan (Pvt) Ltd for conspiracy, cheating and criminal breach of trust under PPC 407, 409, 420, 427, 506 and others so that these fraudsters are stopped to blackmail genuine importers by demanding ‘illegal’ demurrage and detention charges. The complaint received by the NAB and the FIA 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 Maersk Line and M/s Maersk Pakistan (Pvt) Ltd including Søren Skou, Claus V. Hemmingsen, Søren Toft, Vincent Clercp, Morten H. Engelstoft, others of Maersk Line and Arslan Khan, Hazanfar Khan, Raheel Salim, Maqsood Ul Hasan Khan, Fuad Khan, Hasan Faraz, Shakeel Masih, Omer Khan, Ali Jawad Alvi, Zafar Iqbal, Ayesha Chowdhry, Zahid Hussain, Salman Ahmad, Aamir Ali, Umais Aziz Khan, Mohammed Naeem, Farheen Mahmud, Mubasshar Iqbal, Affaq Syed, Syed Mohammad Abbas Jafri, Muhammad Tanveer Sharif, Salman Ateeq, Hamza Haq, Ziad Mahboob, Aamir Ibrahim, Yasir Saeed Khan, Amal Sadiq Dawood, Effat Mehmood, Maria Urooj, Zain Warsi, Mehreen Zulfiqar, Awais Saleem, Zafar Iqbal, Syed Osman Iqbal Zaidi, Anum Yaqub, Fahad Ali, Obaid Iqbal, Zahid Hussain, Muhammad Ali Qureshi, Danish Siddiqui, Amir Arif, Arshad Ayub, Syed Mudassir Ali, Syed Hammad Hussain, Ayesha Qadri, Sheikh Samiullah, others of M/S Maersk Pakistan Private Limited.
100 lawmakers yet to file tax returns total of 100 parliamentarians have not filed income tax returns for the year 2017, says the draft of the Fifth Tax Directory to be released by the Federal Board of Revenue (FBR). The number of parliamentarians, who did not file their income tax returns during 2016, stood at 116 while in 2015, it was 120. Sources said,“The FBR has decided to publish the Fifth Tax Directory for parliamentarians and the general public.” Summary for publication of the directory has been approved by the finance ministry and has now been sent for final approval to the federal cabinet, they said, adding that after the approval, the FBR Tax Directory 2018, presenting tax year information for 2017, would be published. Continuing with its tradition of ensuring transparency in the revenue division, the FBR intends to publish the taxpayers’ directory for tax year 2017. —CTReport
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NOveMBeR 06 - NOveMBeR 12, 2018
Customs Court remands suspects involved in DTH equipment smuggling
KARACHI: The Customs Court sent suspects namely Muhammad Iqbal and Yasir Ali, who were booked in a case of attempting to smuggle and sell Direct to Home (DTH) equipment in open market, to customs department on physical remand. Investigation officer of Customs Preventive produced the above mentioned suspects before the court and informed that in the light of suo moto notice of Chief Justice of Pakistan regarding availability and illegal sale of Direct to Home (DTH) equipment, used to broadcast Indian channels and transfer of money charged against these services.
FBR launches Computerized Payment Receipt Utilization Status
FBR Chairman calls for broadening of tax net through data integration
MULTAN
IMRAN ALI KHAN
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ISLAMABAD
SHAHID MINHAS
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FBR Member IT Khawaja Adnan ederal Board of Revenue (FBR) launched Computerized Payment Receipt (CPR) utilization status for the facilitation of taxpayers. Federal Board of Revenue Member Information Technology Khawaja Adnan Zaheer has launched new module of Computerized Payment Receipt. The Federal Board of Revenue has launched Computerized Payment Receipt for the corrections in sales and income tax returns to facilitate taxpayers. This facility is now available at all field offices nationwide including Regional Tax Office as well as taxpayers to minimize the time required for correction in sale and income tax returns. It will also assist tax officers as well tax consultants and taxpayers for the correction in the name of CPR Utilization Status after activation of this service. Now tax officers may get Computerized Payment Receipt verified while making correction of CPR Utilization Status or allowing credit at any stage. The Federal Board of Revenue has also added its new tab on website under the head of online verification portal.
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ederal Board of Revenue (FBR) Chairman Mohammad Jehanzeb Khan called for aligning ways to broaden tax net through data integration, big data and data sciences that can help identify tax evaders. He expressed these views while addressing an inaugural session of the 1st Information & Communication Technology Workshop organized by the World Bank in collaboration with the FBR. Objective of the workshop was to bring all public sector organizations on one platform to Qind out ways for assisting each other and beneQiting from the available data sources to boost revenue generation and resource mobilization. Underscoring the importance of sharing data and Qinding out what data was available since various departments were using their own data sets for several purposes chairman expressed that “the Qirst step is to understand what data is available and then work on a plan for sharing this data amongst the stakeholders”. The FBR chairman further said that there was also a need to understand what protocols would be required and challenged overcome in achieve the desired goals and objectives. Representatives from all provincial revenue authorities, NADRA, Punjab Information Technology Board, Federal Investigation Agency, Controller General of Accounts, provincial revenue boards, provincial information technology
— Exclusive Customs Today photo
boards, Security and Exchange Commission of Pakistan and National Information Technology Board, Capital Development Authority attended the one-day moot. In his address, the FBR chairman told the participants that FBR had been working on preparing the ICT Strategy Document to address FBR’s development needs for the next three years and a prospective plan on the IT and communication side for the next 10 years. “A systematic plan with a clear roadmap will help identify what skill sets are to be learnt and honed and what resources are required for the purpose,” he added. He welcomed the participants for attending the conference and hoped their deliberations would go a long way in Qinding ways for acquiring and sharing big data for
analytics, business intelligence and documentation of economy and suggest ways for overcoming challenges in digital progress. He also thanked the experts from World Bank for attending the workshop. Meanwhile, Punjab Minister for Finance, Makhdoom Hashim Jawan Bakhat called on Chairman Federal Board of Revenue Jahanzaib Khan at FBR House. OfQicial sources told Customs Today that matters pertaining to maintain Qinancial disciplines and streamlining taxation system came under discussion. Makhdoom Hashim appraised about the measures being adopted by the provincial government for evolving effective strategy to improve taxation policies and allocating adequate funds for development and welfare oriented
activities. Chairman FBR Jahanzaib Khan said that we are trying to enhance tax net in the country by extending maximum facilities to tax payers. He said it is endeavor of FBR, to delegate administrative and Qinancial powers so that better results could be achieved besides improving the performance of different functionaries relating to revenue collection. He was of the view that government intends to provide a congenial atmosphere of local and foreign investment in the country which would provide optimum opportunities of jobs and business. Provincial Finance Minister Makhdoom Hashim Jawan Bakhat also discussed Qinancial issues concerning Provincial departments and federal organizations.
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04 NATIONAL
NOveMBeR 06 - NOveMBeR 12, 2018
FBR establishes sales tax registration cell at CRTO
LAHORE: The Federal Board of Revenue (FBR) has established a dedicated sales tax registration cell at Corporate Regional Tax Office, Lahore. All applications related to sales tax registration can be submitted directly in the registration cell along with required documents in duplicate, it added. An assistant director will ensure that any document related to query / objection will not be raised at a later stage. Application requiring field visit will be forwarded to the zones concerned with complete documents the same day by the assistant director, it said.
Shipping companies bound to accept D&D certificate issuedbyCustoms:DrArslan ISLAMABAD
TARIQ DERYA
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Faisalabad ASO seizes huge quantity of smuggled cloth from M/sWaqar Aslam & Co FAISALABAD
NAEEM SHEIKH
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Deputy Collector Aneeqa Afzal ollectorate of Customs AntiSmuggling Organization (ASO) seized 650 kilogram of smuggled cloth during special operation. Sources told Customs Today that Collector Asif Mehmood Jah received credible information regarding the smuggling of cloth lying at M/s Waqar & Co Goods Transport Company Jhang Road to Toba Tak Singh. He immediately constituted a raiding team under the supervision of Deputy Collector Aneeqa Afzal which also comprises Superintendent Tanveer Raza Naqvi, Inspector Farhan Frank, Arfan Faheem and Sepoys Ghulam Ghous and Liaqat Ali. The ASO team raided at M/s Waqar & Co Goods Transport Company and recovered foreign origin O cloth 650 kilogram cloth. On demand the staff of cargo adda could not produce any documentary evidence of lawful possession and legal import goods at the spot. Therefore, the officials confiscated the items under the customs laws. A case has been registered against accused person Waqar Aslam owner of the seized cloth. The case has been forwarded to the Customs Adjudication for further legal action.
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— Exclusive Customs Today photo
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irectorate of Customs Intelligence and Investigation Director Arslan Subuctageen assigned the task to dig out cases where millions and billions of rupees worth of tax evasions and fraud are involved which caused huge losses to the national exchequer. He expressed these views during an exclusive interview with Customs Today. Answering to a query regarding issue of shipping companies demanding detention and demurrage charges by importers, Dr Arslan said that as per Customs Act, Section 2013, the shipping companies allow charges free clearance time for Qive days and subsequent to that they are allowed to charge demurrage as Qixed by the concerned Collector of Customs. In accordance with the law, delay and detention certiQicate is issued by Customs, only when the department needs to investigate the consignment and the consignment cannot be detained at Port beyond that speciQied time limit, he said, adding that terminal operators are required to accept the D&D CertiQicate issued by Customs and if they do not accept or partially accept it, department is free to initiate necessary action against them. Dr Arslan said that government should build a sizeable Customs Border Security Force (BSF) to make borders with Afghanistan and Iran secure for promotion of trade between neighbouring countries
Customs I&I Dr Arslan Subuctageen
and to discourage the smuggling activities. He encouraged the government for rationalizing duty taxes to curb smuggling. Answering to another query that whether enforcement department of Customs can work under independent domain or wing? Dr Arsalan said that it look fair enough that if enforcement of customs work under separate wing or domain as well as Directorate
of Customs Intelligence and Investigation (I&I) should only gather the information from raw shape and after purifying it, the information should be delivered to the Customs enforcement wing for further interception or seizures. Dr Arslan said that I&I must work on cases where huge amount of revenue is involved. He added that small cases of smuggled goods is just exertion for I&I.
Customs Preventive submits interim challan of betel nuts smuggling case KARACHI
M.B RANA
www.customstoday.com he Customs Court issued non bail-able warrants against suspects namely Muhammad Fafeem, Muhammad Umair and Muhammad Kamran, who were booked in a case of attempting to smuggle non duty paid 54,180 kilogram betel nuts. Investigation officer informed the court that above mentioned accused are still absconding and prosecution is trying its best for their arrest and they will be produced before the court when arrested. Investigation officer also submitted interim challan and informed the court that on a actionable information that two containers arrived from Jabel Ali UAe in the name of importer/ consignee M/s Sun Gravure are lying at Karachi International Container Terminal (KICT) stuffed with betel nuts instead of plastic film rolls declared in the respective import documents. He submitted that during the raid of the same place, a team of Customs Preventive recovered 54,180 kilogram betel nuts and during the investigation, it was established that accused Muhammad Shafique Ahmed Qureshi, owner of Sun Gravure, Khalid Ahmed, co-owner of M/s Sun Gravure, Abdul Moin Majeed Bawany, Muhammad Abbas Hashmi, Muhammad Kamran, Muhammad Faheem, Umair and others have thus committed an offence under violation of Section 2 (s) 16, 32 156 (2) and 178 of Customs Act, 1969 punishable under Clause (8) (9) (14) and 89 of Section 156. He said that since the investigation of the case is continuing and effort are under way to trace out and arrest the absconding accused persons involved in the scam, therefore, it is requested that further time may kindly be granted.
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Multan Customs surpasses assigned revenue collection target during October C
MULTAN
IMRAN ALI KHAN
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ollectorate of Customs collected Rs3920.406 million against set target of Rs3569 million under different heads including customs duty, sales tax, federal excise duty and income tax during the month of October of current Fiscal Year 2018-19. According to the statistics available with Customs Today, Multan Customs collected Rs1540.744 million under the head of customs duty against assigned target of Rs1091 million during October.
The Collectorate attained almost 41 % excess revenue collection in customs duty due to their adequate revenue collection strategy in the start of second quarter of Qinancial year 2018-19. The Collectorate posted almost Rs449.744 million excess collections than their set target. Multan Customs had collected Rs836.070 million of customs duties during corresponding Qiscal year 2017-18 of the October. The Collectorate has collected Rs2348.766 million against the set collection task of Rs.2418 million under the head of sales tax during the month of October 2018-19.
The Collectorate attained 97 % assigned target during October. Similarly the Collectorate collected revenue of Rs2102.398 million in share of sales tax in the matching period of October 2017-18. Multan Customs Collectorate collected Rs12.867 million against target of Rs36 million in wake of federal excise duty (FED) during October of the current economic year 2018-19. On the other hand the Collectorate collected Rs32.827 million during corresponding period of the Qiscal year 2017-18. The Collectorate of Customs collected Rs16.919 million against set task of Rs.24 million in wake of withholding tax (WHT)
during the month of October 201819. Multan Customs attained 70 % revenue collection task of withholding tax (WHT) throughout October. However it collected Rs22.142 million in wake of income tax during the month of October during corresponding period of the economic year 2018-19. The Collectorate also generated Rs1.110 million in wake of additional sales tax during October of monetary year 2017-18. Meanwhile, Multan Customs Collectorate accomplished set revenue task and collected excess revenue of Rs351.406 million due to effective strategy devised by Collector Ambreen Ahmad Tarar.
www.customstoday.com NOveMBeR 06 - NOveMBeR 12, 2018
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— Exclusive Customs Today photo
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NOveMBeR 06 - NOveMBeR 12, 2018
KARACHI
ASAD KHARAL
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akistan’s biggest ever fraud of sales tax is unearthed where Maersk shipping line has evaded billions of rupees sales tax in terms of services provided to its local clients and transfer these huge sums to Denmark where anti-Islam leaders use this money in anti-Islam activities by publishing blasphemous cartoons, hurting feelings of billions of Muslims across the world. Maersk shipping line used to collect huge revenue from Pakistan and convert this money in dollars and transfer it to Denmark against the laws while it does not pay 13% sales tax on services to Sindh Revenue Board. The SRB is not taking any action against the company which shows its active connivance with the former. The Jyllands-Posten cartoons were Qirst published by Jyllands-Posten in late September 2005. In November, several European newspapers re-published the images, triggering protests. Strikes began in Pakistan the following month, and several organizations criticized the Danish government. More protests occurred in January 2006, and later that month a boycott of Danish goods began. Several countries withdrew their ambassadors to Denmark, and widespread protests, some of them violent, began. Those who love Rasool Allah (Peace be upon him) across the globe started boycott of Danish companies including a vast range of their products and services but very little did know that Maersk Lines also belongs to Denmark and that they loot Pakistan businessmen while accumulating vast wealth to support the blasphemous caricatures. The entire scam is now exposed with religious personalities coming to know of the entire issue and sources say that it is not long that henceforth boycott calls would include Maersk Lines in the list of
Danish companies. In 2018, Imran Khan government succeeded to play its role to pressurize the Netherlands government to cancel blasphemous caricatures completion Qixed by the Freedom Party of Dutch anti-Islam politician Geert Wilders. PTI government’s basic agenda is to increase revenue to run its affairs smoothly and take the country to new heights but companies like Maersk Pakistan Pvt. Ltd. are evading government’s legitimate revenue worth billions of rupees. On the other hand, within hours after a section of media exposed the biggest ever sales tax scam of Maersk lines, Danish Ambassador to Pakistan His Excellency Rolf Holmboe made a hotline contact and urgently met with Minister for Maritime Affairs Ali Haider Zaidi to pressurise him to in turn put pressure on local media to stop exposing Maersk Pakistan Pvt. Ltd. Maersk Line went up to such an extent that they even sent to a media house posts and photos of the Danish Ambassador having an emergency meeting with Ali Haider Zaidi so as to silence the media house instead of asking their company to abide by local laws and pay taxes according to law. Ali Haider Zaidi was elected to the National Assembly from Constituency NA-244 (Karachi East-III) as a candidate of PTI in 2018 general election. On 11 September 2018, he was inducted into the federal cabinet of Prime Minister Imran Khan and was appointed as Federal Minister for Maritime Affairs. He is said to be committed to end corruption from maritime & shipping ministry and other related departments. After numerous media and chambers expressed their concern on sheer violation of rules and regulations by the shipping line, Maersk started threatening media through unscrupulous persons and letters written by unknown persons, without signatures and proper designations but put on Maersk letter heads, to hush up the Rs 15 billion demurrage and detention scam. Journalists including this correspon-
dent have been exposing the mega scam of Maersk since last few months. He has already been attacked immediately after exposing the Rs 1,000 billion customs green channel scam but he remained unmoved. He has been active in unveiling many mega scams and corruption cases where big and powerful individuals, bureaucrats and political personalities are hooked. He repeatedly published full page appeals to the Chief Justice of Pakistan in Customs Today newspaper on the Rs. 1,000 billion mega scam of green channel. Big names like Mobilink and QMobile were reported to be involved in the mega scam. On 1 June 2018, he appeared at the Supreme Court and Qiled complaint along with the copies of the appeals. Chief Justice of Pakistan Mian Saqib Nisar took notice of the complaints and called for reports from relevant quarters within 10 days. On the very next day of this letter, this correspondent was attacked by ‘masked men’ near Allama Iqbal International Airport. But still he remained committed with his job and kept on disclosing huge scams like Rs 15 billion demurrage and detention scandal by shipping lines like Maersk. After media exposed Maersk since last couple of months, yet Maersk has never been able to come up with any response on why they are violating the law prescribed under SRO 1220 (I)/2015. Instead of giving any legal explanation to SRO 1220 (I)/2015, Maersk has stooped to such unethical means of threatening the media through anonymous letter now. Law under SRO 1220(I)/ 2015 explains that shipping companies cannot charge any demurrage and detention where speciQically it is not agreed and also speciQically not mentioned on the B/L (Bill of lading). Meanwhile, Maersk shipping line is issuing ‘benaami’ bills without sales tax numbers, without publishing its own name on the bills and giving its sales tax numbers. As per its modus operandi, Maersk sends emails in the name of Helen De Isidero to its clients whereas it is actually sent by Mr. Maqsud through Pakistan
email ID pk.import@maersk.com. Maersk Pakistan employees themselves claim that Helen works in their Manila ofQice while the email is sent from Pakistan ofQice. Furthermore, all services are provided in Pakistan through Pakistan company M/s Maersk Pakistan Pvt. Ltd. but the company tries to show that services are provided by foreign company and their employees through using dummy names. When service provided in Pakistan by Pakistan ofQice and Pakistan employees then how can sales tax on such service remain unpaid? This obviously is a fraud to evade huge sales tax liabilities. Businessmen of Pakistan have appealed to NAB and FIA to intervene and investigate connivance of Maersk and Sindh Revenue Board in the alleged mega scandal which is generating huge black money for them that in turn can be used by a section of Danish people to prepare blasphemous cartoons against the honour and sentiments of the Muslims across the globe.
About Asad Kharal: Asad Kharal is presently chief analyst and anchorperson at BOL. He is host of the famous TV program ‘Ab Pata Chala’. Asad Kharal is considered one of the most experienced and best investigative journalists of Pakistani media industry and had worked on several exclusive inside stories throughout his journalism career. During his around 20 years of journalism career, he had successfully worked for more than 2000 investigative stories for the print and electronic media of the country. He had also associated with several leading media groups of Pakistan including Express Tribune, Dunya Television and ARY News. He has also an honour of winning “Investigative Journalist of the Year” award in 2003. Asad Kharal was co-hosting a program named “Andar Ki Baat” on ARY News. He had also written six books on different topics and worked for Chicago Sun Times and The Guardian as a freelancer. Asad Kharal is also chairman of Tehlka News and Center for Investigative Journalism (CIJ).
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08 eDITORIAL
NOveMBeR 06 - NOveMBeR 12, 2018
Founder & Chairman Zulfiqar Ali CeO and Chief editor Asad Kharal editor Rahil Yasin editor@customstoday.com.pk For advertising & subscription marketing@customstoday.com.pk www.customstoday.com Phones: 042-35781643-4, Fax: 042-35781645 Address: 627, Siddiq Trade Centre, Gulberg, Lahore
EDITORIAL
Pakistan's improved ranking
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akistan ranked eleven places higher in World Bank’s ease of doing business index and moved from 147 to 136th position, attributed to three measures: (i) enhancing online one-stop registration system, (ii) replacing several forms for incorporation with a single application form, and (iii) establishing information exchange between the registry and the tax authority. These measures accounted for the reduction in the time required to set up a new business from 20 days to 17 days and a reduction in cost from 7.9 percent of per capita income to 6.8 percent. Only two cities were used to assess the ease of doing business – Karachi and Lahore – and therefore one would hope that a countrywide assessment is carried out by the authorities to ensure that the measures taken are being widely used. Be that as it may, this improvement must not be used for complacency because the index is based on perceptions and that too in only two cities of the country. However, the three measures that account for an improvement in Pakistan’s ranking in ease of doing business can be sourced to the previous administration and, unfortunately, do not reflect either an increase in the country’s growth rate, or an increase in exports or, even more worrisome, a decline in imports. The International Monetary Fund (IMF) has projected a growth rate of 4 percent for fiscal year 2019, a decline from the previous year’s rate of 5.8 percent while upping the rate of inflation from 3.9 percent in the last fiscal year to 7.5 percent. The Asian Development Bank (ADB) had earlier forecast 5.1 percent GDP growth rate for 2019 but has since revised its estimate downward to 4.8 percent and is likely to further downgrade this rate given that the ADB defers to the greater expertise in the Fund’s capacity to make projections. To claim the blame for the lower growth rate rests with external factors can be challenged given that the forecast for Bangladesh (7.9 percent) and India (7.3 percent) were not downgraded though the rise in inflationary pressures would no doubt be attributed to the rise in the international price of oil. However, if the country accesses the three-year up to 3 billion dollar facility from Saudi Arabia and succeeds in getting an equivalent amount of facility from the United Arab emirates then the government may not be able to cite external factors as negatively impacting on our domestic inflation. exports have increased by only 4 percent subsequent to the rupee depreciation of around 18 percent while imports have increased by 6 percent thereby further widening the trade deficit.
Tourismcanplayroletogeneratehugerevenue T
LAHORe
CUSTOMS TODAY REPORT www.customstoday.com
he tourism and hospitable sector is one of the largest important sources of revenue generation in today’s world as people want to visit new places and new destinations to explore new cultures for recreation and satisfaction of their aesthetics. There are millions of millions of other people who go on businesses and religious trips, making tourism as one of the promising industries in the world. The travel and tourism industry plays a large role in both developing and the developed countries and has been contributing signiQicantly to their economies. Pakistan is blessed with rich and varied sightseeing lands full of local Qlora and fauna. At least thirteen out of 18 high peaks in the world are in Pakistan, including Karakoram and the
Hindukush ranges. Those are famous for their alpine meadows and permanent snow line, coniferous forests down the sub-mountain scrub in the north while the vast Indus plains on the south of the country along with the great desert, the coast line and wetlands, all offer marvelous attractions for the potential tourists of the country. At least ten of 18 mammalian orders in the world are represented in Pakistan with species ranging from the world’s smallest surviving mammals, the Mediterranean pigmy shrew, to the largest mammal ever known the blue whale. Pakistan is a land of opportunities and a land of high adventure and nature. Tourists are fascinated with trekking, mountaineering, white water rafting, wild boar hunting, mountain and desert jeep safaris, camel and yak safaris, trout fishing and bird watching opportunities
It is hoped Imran Khan’s govt will give this industry a priority like KP govt in last tenure
across the country. The marvelous beauty of Northern Areas is the source of attraction for the local and foreign tourists. There are beautiful valleys and lacks across the country, which are greatest attractions for tourists. Pakistan can have billions of dollar tourism industry if attention is paid to this sector. Again, cultural and commercial attaches working in Pakistani missions abroad should be put on the action mode and they should be told in clear terms that the government means business. The tourist industry will not only increase the foreign exchange reserves, but will also promote the soft image of Pakistan in the comity of nations. But it is yet to be seen who will bell the cat. It is hoped Imran Khan’s government will give this industry a priority like KP government in last tenure. It will increase revenue generation of the country under burden of huge local and foreign loans.
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NATIONAL 09
NOveMBeR 06 - NOveMBeR 12, 2018
Customs Court approves physical remand of accused involved cigarettes smuggling
KARACHI: The Customs Court sent suspect namely Khalil Ahmed son of Abdullah Khan, who was booked in a case of attempting to smuggle foreign origin cigarettes and other contraband goods, to Pakistan Coast Guards (PCG) on physical remand. Investigation officer produced the above-mentioned accused before the court and informed that on actionable information, a team of Pakistan Coast Guards intercepted a Hino truck bearing registration number TKZ-733 and during the search, found 270 cartons of foreign-origin cigarettes and other contraband goods.
Mianwali ASO recovers 1250 liters smuggled Iranian diesel
Collector Jamil Nasir’s Customs Appraisement earns Rs8.4 billion
MIANWALI
LAHORe
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ollectorate of Customs Anti-Smuggling Organization recovered 1250 liters smuggled Iranian diesel during a successful operations. Sources told CustomsToday that Collector Asif Mehmood Jah received secret information that some smugglers are planning to smuggle a huge quantity of Iranian diesel. He conveyed the information to Additional Collector Muhammad Saeed Asad.The additional collector constituted an ASO team comprisingTanveerul Haq, Amer Mumtaz Bajwa, driver Riasat Hussain, Sepoy Saifullah, Ghulam Mohyuddin, Muhammad Abdullah and others.The ASO team established various checking points at different locations of Mianwali area and started checking of vehicles. The ASO team intercepted an oil Hino truck bearing registration no: TKZ-769 Quetta and recovered 1250 liters Iranian diesel. The ASO team asked the driver and his companion to provide legal documents regarding possession and transportation of Iranian diesel but all persons failed to show any documents. After their failure ASO team arrested the accused persons namely Habib Ur Rehman and seized the Iranian diesel. The market value of seized Iranian diesel is Rs 136250 involving duty and taxes Rs 444788 besides value of Hino truck 3000000. The ASO team seized diesel and deposited the same in state warehouse.
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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 recovered record amount in the wake of taxes in October of Fiscal Year of 2018-19. According to details available with Customs Today the Collectorate showed growth of 25 percent in collection of customs duty in the fourth month of Qinancial year 201819. The Collectorate has collected Rs 4 billion against Rs 3.5 billion collected during of September, 2017. Customs Appraisement recovered 25 percent extra as compared to the Qiscal year of 207-18 which is a new record in history. Total revenue collection reached to Rs 8.4 billion in October which is new milestone in history of Customs Appraisement Lahore. Collector Customs Appraisement Jamil Nasir urged upon the customs ofQicers to make strenuous efforts for optimum revenue collection through trade facilitation and quick clearance of import consignments. Meanwhile, Collectorate of Customs Appraisement Mughalpura Dry Port issued recovery notice to M/s D.S Engineering Works Private Limited on default of Rs 33 million, under Sub-Section 1 of Section 202 of the Customs Act 1969. Sources told Customs Today that an amount of Rs33 million is still outstanding against M/s D.S Engineering Works Private Limited. Sources told that above said
— Exclusive Customs Today photo
NAEEM SHEIKH
Collector Jamil Nasir amount is recoverable from the company from long time but company failed to clear the outstanding amount. Now Customs Appraisement issued them Qinal notice asking the company to clear the outstanding amount within Qifteen days otherwise stern legal action will be taken. The notice further stated that failure in clearance of dues will led to attachment and sale immovable properties of the company. Meanwhile, Customs Collector Jamil Nasir Khan has asked State Bank of Pakistan to accord waiver from requirement of Electronic Import Form (EIF) on one-time basis in respect of consignments, which
have already been adjudicated by the Adjudication authorities. According to a letter addressed to director of SBP Foreign Exchange Operations Department, the collector said that the SBP mandated provision of EIF through its notiQication No FE 1/2016-SB dated July 26, 2016 before Qiling of GD in WeBOC system. Later on, SBP stopped foreign exchange payments against open account for commercial importers through its Circular Nos 6 and 7 of 2018 dated 14-07-2017 and 20-107-2018 respectively. In wake of aforementioned change, commercial banks stopped issuing EIF to commercial importers. Consequently, a number of
consignments arrived into Pakistan where payment had been made thorough open account but where commercial banks refused to issue EIF to importers, he said. Jamil Nasir said that WeBOC system does not require EIF where assessable value of goods is less than US$500/- or where the weight of consignment is less than 100kg or where exemption under Chapter 99 of Pakistan Customs Tariff has been claimed. A number of importers Qiled GDs by claiming inadmissible exemption of PCT heading 9910 or by mis-declaring the value of goods less than US$500/- in order to bypass WeBOC system check for EIF. Contraventions were framed in offending GDs without EIF under Section 16 and 32 of the Customs Act, 1969. The Adjudicating authority has disposed of these contraventions, saying, “The respondent is willing to pay duty/taxes on the impugned goods. Therefore, the charges levelled in the show cause notice stand established against the respondent. Keeping in view the above, in exercise of powers conferred upon me under Section 179 of the Customs Act, 1969, I therefore, order for conQiscation of the goods. However, taking a lenient view, I order for release of conQiscated goods to its lawful owner against 35% redemption Qine in terms of SRO 499(I)/2009 after fulQilment of all legal formalities”. He continued that offending goods have been allowed conditional release after imposition of redemption Qine under SRO 499(I)/2009.
KCCI requests FBR to restore previous tax return form To,
Mr. Jahanzaib Khan, Chairman FBR, Islamabad Dear Sir,
I want to bring in your notice that keeping in view the complications in the revised form this year, the previous form should be restored for Qiling income tax returns as all taxpayers and practitioners are well-acquainted with the previous version, therefore they will absolutely have no problems in easily submitting their returns via the old form. The restoration of previous form, which was agreed upon after great deliberations, would help in improving the number of taxpayers in the Active Taxpayers List otherwise, the newly existing form is likely to
shrink the number of active taxpayers and prove counterproductive for all the efforts being made to enhance tax base of the country. Businessmen are Qinding it difQicult to submit their Income Tax Returns through the new form as it was too cumbersome, wastes a lot of time and contains some IT related glitches as well, making it an exercise in futility. Prior to implementing such technically difQicult and cumbersome forms, the FBR should carry out massive awareness campaigns by holding workshops and seminars at all levels as the Qilers belong to all three segments of the society i.e. the upper, middle and lower class. This year, FBR has made the businesses attributes section mandatory which was optional last year whereas it has been observed that the said attributes list is
creating issues between FBR and Qilers. I request you to make the attributes section optional as per past practice and it should be made mandatory only when the attributes list is completely accurate and comprehensive in consultation with stakeholders. I am quite optimistic that keeping in view the grievances being faced by a number of taxpayers, FBR would consider KCCI’s request to restore the previous form for Qiling Income Tax returns as per aspirations of the business and industrial community and in line with present government’s policies. Regards, incomplete, leaving enough room for errors and misQiling which is likely to become a major cause of
Junaid Esmail Madka, President KCCI, Karachi
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10 NATIONAL
NOveMBeR 06 - NOveMBeR 12, 2018
ASO impounds non-customs paid Yamaha heavy bike
FAISALABAD: Anti-Smuggling Organization impounded non-customs paid Yamaha heavy bike during routine surveillance of staff. Sources told Customs Today that Anti-Smuggling Organization established check-post near Jhang Road and intercepted non customs paid Yamaha heavy bike 600CC. The imported Yamaha heavy bike was without any registration number. The total price of the heavy bike is Rs 1 million in the market.
‘Collection of exorbitant charges by Maersk Line an open violation of laws’ MULTAN
IMRAN ALI KHAN
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ollection of exorbitant demurrage and detention charges from genuine importers of South Punjab by Maersk Line and its subsidiary in Pakistan is open violation of laws and their license should be cancelled under SRO1220 (I)/2015. This was stated by senior member and former General Secretary Multan Tax Bar Association (MTBA) Muhammad Imran Ghazi the other day while talking exclusively with Customs Today. He said that extortion of Maersk Line for collection of demurrage and detention charges from importers is intolerable as importers are facing obstacles in clearance of their shipments due to their blackmailing. Collection of demurrage and detention charges from importers without any speciQied agreement is unfair. He said that tax consultants have been constantly receiving complaints against these shipping lines and their agents involved in taking unjustiQied demurrage and detention charges from importers of South Punjab for the clearance of shipments. Importers of South Punjab are facing blackmailing of shipping companies for clearance of their legally imported shipments as shipping companies charge unjustiQied demurrage and detention charges. Illegal collection of demurrage and detention charges creates alarming situation in the coun-
— Exclusive Customs Today photo
General Secretary (MTBA) Muhammad Imran Ghazi
try and importers are usually trapped by offering low rates by the agents of Maersk shipping line at the initial stage but when the shipment reaches Karachi, they don’t release the goods and charge additional demurrage and detention without any reason to
generate Qinancial paybacks. He said that shipping companies cannot charge any demurrage and detention where speciQically it is not agreed and also speciQically not mentioned on bill of lading but Maersk Line and its subsidiary Maersk
Pakistan (Pvt) Ltd is violating set laws and regulations. Shipping Company and port authorities cannot charge any demurrage or detention charges if Customs provides a delay and detention certiQicate to importers but reportedly even with this
certiQicate Shipping Company M/s Maersk shipping line is illegally charging demurrage amount to genuine importers and they are breaching laws. He asked the newly elected government of Pakistan to take special measures for protection of importers and the economy of this import-dependent country. He said that federal government is responsible for regulations of shipping companies and it’s their prime responsibility to protect importers from exorbitant demurrage & detention charges. He suggested that government should take action against shipping companies involved in excess logistic charges should be punished under rules 603(q), 603(r), 604(p), 604(q) & 607(e), others under SRO 1220/2015 which includes penalty and also cancellation of license. It is pertinent to mention here that the National Accountability Bureau (NAB) and the Federal Investigation Agency (FIA) received a complaint seeking probe to ascertain role of employees of Maersk Line in country’s biggest shipping scandal involving 610 billion rupees. Importers lodged application against Maersk Line and its subsidiary in Pakistan Maersk Pakistan (Pvt) Ltd for conspiracy, cheating and criminal breach of trust under PPC 407, 409, 420, 427, 506 and others so that these fraudsters are stopped to blackmail genuine importers by demanding ‘illegal’ additional charges. The complaint received by the NAB and the FIA demanded legal action for recoveries of amounts looted and recovering losses of Rs. 610 billion to the national exchequer.
P
PeSHAWAR
NADIR KHAN
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resident of Sarhad Chamber of Commerce and Industry (SCCI) Faiz Mohammad said that owing to lack of facilities at Torkham border and repeated stranding of Pakistani containers on Afghan side of the border badly affecting the bilateral trade activities and it is need of the time that incumbent government address these issues to promote export of the country. In exclusive interview with Custom Today Faiz Mohammad said that due to lack of interest and strong well of the government, there is huge trade deQicit with
Afghanistan as the neighboring country have switched over most of the trade activities toward Iran and Central Asian republics. He said there is great difference between facilities at Wagah border and Torkham border as due to settle areas there are no barriers in the process of important export at eastern border while at Torkham border there are number impediments including lack of internet facilities and proper space for exporting containers. He added that at Wagah border the WeBOC system is fully active and due to huge space and due to lack of rush the trade activities goes swiftly without any hindrance. He said that National Logistic Cell has also provided
— Exclusive Customs Today photo
‘Lack of facilities atTorkham border affecting bilateral trade activities’
President SCCI Faiz Mohammad
facilities at Wagha border and they are fully equipped with train staff to help the transporters on the border. He said that still 3000 vehicles has been stranded in Afghanistan side and they said that the import until their safe fruits delivery to Afghanistan the returning containers of Pakistan from Afghanistan would not be allowed to cross the border. To a question Faiz Mohammad said that NLC not fully cooperating with exporters on the border and instead of facilities they are creating hurdles for the exporters. He said that repeated strikes of Khyber residents against border authorities and NLC also creating hurdles for the exporters due to
which their vehicles remained stranded at standstill situation on the border. He said that NLC taking 3500 rupees per containers and 2200 per truck on the border for sake of facilitation and crane facilities but these facilities were not sufQicient to address the problems of the exporters. He said that this NLC is also available at Sust border with China where it works smoothly to handle routine business between china and Pakistan. He said that all the borders are fully functional but problems lies at Torkham border due to lack of facilities on the border. He mentioned that stopover at the border also cause expiry of perishable items and inQlict heavy losses on exporters.
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CARTOONSSPeCIAL 11
NOveMBeR 06 - NOveMBeR 12, 2018
Abbottabad-Hazara anti-smuggling squad seizes Indian origin vegetables
ABBOTTABAD: Collectorate of Customs anti-smuggling squad of Abbottabad Hazara division 6000 kilograms of Indian origin fresh tomatoes and 6640 kilograms red chilli seeds. Assistant Collector Asma Javid Paracha told Customs Today that Indian origin vegetable and fruits are bio security risk due to which strict action have been taken to curb smuggling of Indian origin tomatoes and chilli along other entities. These fruits are smuggled into Pakistan via Muzaffarabad without payment of duty and taxes causing loss to the exchequer and create distortions in the Pakistani markets.
Multan I&I foils attempt of smuggling red chilli seeds worth Rs12m from Sher Shah MULTAN
IMRAN ALI KHAN
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ustoms Intelligence and Investigation team foiled an attempt of smuggling of red chilli seeds worth Rs12 million. Sources told Customs Today that Deputy Director I&I Khial Muhammad Khan received credible information from his source about the smuggling of foreign origin red chilli seeds. Deputy Director formed special team of I&I thwart any smuggling attempt. Special team comprises Inspector Muhammad Umer, Inspector Amjad, ZulQiqar and others. Customs Intelligence team intercepted a suspected vehicle loaded with huge quantity of red chilli seeds near Sher Shah Road and recovered 10 tons of Indian origin red chilli seeds. The red chilli seeds were being transported to supply in South Punjab markets. Customs Intelligence team asked the driver to produce documents showing the legal import of the recovered items but he
failed to produce any documents. Customs team seized the red chilli
seeds along with vehicle under CustomsAct1969.Thetotalworthof
seizedredchilliseedsisRs12million. Further investigations against the
Gwadar Customs seizes non-duty paid lights, fans & batteries worth Rs9.36m
seized red chilli seeds are still under way till the Qiling of this report.
Customs seizes smuggled mobile phones, digital cameras & copper wire rolls KARACHI
CUSTOMS TODAY REPORT www.customstoday.com
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KARACHI
WAQAR AHMED ANSARI www.customstoday.com
ollectorate of Customs team seized a number of portable charging items include lights, fans, batteries worth Rs 9.36 million including vehicle being used for smuggling. Sources told Customs Today that Deputy Collector Gawadar Junaid Mehmood received secret informa-
tion that some smugglers are trying to smuggle non duty paid portable charging items include lights, fans, batteries from Gwadar to Karachi, After receiving this information, he constituted a raiding team under the supervision of Customs Preventive Inspector Nabeel Mastung, Zubair Khan and others. The team, during a search operation in exit way of Gwadar intercepted a vehicle bearing registration no QBD-098. During search, the team impounded
more than 200 cartons of small emergency lights, 100 piece of charging ceiling fans, 300 batteries worth Rs9.36 million including truck being used in smuggling. The team seized all smuggled items and arrested truck driver who were later identiQied as Shamim Gul and Imran Majeed. Customs ofQicials started investigations from accusedperson.SourcetoldthatDeputy Collector Gwadar Junaid Mehmood has given order of grand operation against non-customs paid vehicles.
ollectorate of Customs team seized huge quantity of non-customs paid mobile phones, digital cameras and copper wire rolls worth Rs 7.20 million including vehicle being used for smuggling. SourcestoldCustomsTodaythatDeputyCollectorJunaidMehmoodreceived secretinformationthatsomesmugglersaretryingtosmugglehugequantityof mobilephones,digitalcamerasandcopperwirerollsfromGwadartodierent cities.Afterreceivingthisinformation,heconstitutedaraidingteamunderthe supervisionofCustomsPreventiveInspectorWajidRehman,UmarNabeeland others.Theteam,duringasearchoperationonJewaniRoad,interceptedavehicle bearingregistrationnoGX-7219.Duringsearch,theteamimpoundedmorethan 100pieceofsmartphones,morethan300dierentstillcamerasand200rollsof copperwiresvaluedatRs7.20millionincludingtruckbeingusedinsmuggling.
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12
NOveMBeR 06 - NOveMBeR 12, 2018
Sargodha ASO confiscates non duty paid almonds
SARGODHA: Anti-Smuggling Organization (ASO) seized 1395 kilograms of foreign origin almonds worth Rs1,20,0000 involving customs duty and taxes to the tune of Rs619569. Sources told Customs Today that ASO team intercepted a used mini truck bearing registration no: FDS-18-8844 near Siyal Mor Interchange and recovered foreign origin almonds. The vehicle was loaded with different kind of local goods as well as foreign origin almond without shell. The officials asked the driver Syed Naseer Ali Shah to produce documents regarding its legal import of almonds but he remained failed.
NAB must take action against Maersk shipping line: Minister Taimur Jhagra PeSHAWAR
IRFAN BAHADUR
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— Exclusive Customs Today photo
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he National Accountability Bureau (NAB) must act to stop Maersk Shipping Line for taking extra detention and damurrage charges from importers, said by Provincial Minister Finance Khyber Pakhtunkhwa Taimur Saleem Jhagra. He was talking with Customs Today in Peshawar and termed it a violation of shipping business rules and said that new techs needed to be utilized for satisfaction of importers during inquiry of their goods and duties applied on them. The Maersk shipping line must facilitate importers of Pakistan and avoid frustrating them by violating Customs rules by taking extra charges than fixed by Government of Pakistan. It’s also a matter of worry that how far a multinational company violates prescribed rules of a government. The authorities concerned as will the security agencies along with Federal Finance Minister need to conduct fair accountability of Rs 600 billion loss to the exchequer. The provincial Qinance minister also said that shipping lines other than Maersk line are facilitating importers but due to market monopoly Maersk line takes advantage. It’s point to be wonder of that in so many ways importers and traders have been discouraged in Pakistan by shipping lines like Maersk but government remains unaware of the situation for decades. The Provincial Finance Minister said in leadership of Imran Khan
Provincial Minister Finance KPK Taimur Saleem Jhagra this government will not tolerate any injustice with importers. Soon the matter will be discussed with high-ups of the government and complete justice will be done with
importers. It is pertinent to mention here that Federal Investigation Agency (FIA) Corporate Crime Circle Karachi has also taken up the issue of blackmailing and cheating by the
shipping line by issuing a letter No FIA/CCCK/VRF-52/2018/5486-87 in this regard. It is pertinent to mention here that the NAB and the FIA already received a complaint
seeking probe to ascertain role of employees of Maersk Line in country’s biggest shipping scandal involving 610 billion rupees. Importers lodged application against Maersk Line and its subsidiary in Pakistan Maersk Pakistan (Pvt) Ltd for conspiracy, cheating and criminal breach of trust under PPC 407, 409, 420, 427, 506 and others so that these fraudsters are stopped to blackmail genuine importers by demanding ‘illegal’ demurrage and detention charges. The complaint received by the NAB and the FIA 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 Maersk Line and M/s Maersk Pakistan (Pvt) Ltd including Søren Skou, Claus V. Hemmingsen, Søren Toft, Vincent Clercp, Morten H. Engelstoft, others of Maersk Line and Arslan Khan, Hazanfar Khan, Raheel Salim, Maqsood Ul Hasan Khan, Fuad Khan, Hasan Faraz, Shakeel Masih, Omer Khan, Ali Jawad Alvi, Zafar Iqbal, Ayesha Chowdhry, Zahid Hussain, Salman Ahmad, Aamir Ali, Umais Aziz Khan, Mohammed Naeem, Farheen Mahmud, Mubasshar Iqbal, Affaq Syed, Syed Mohammad Abbas Jafri, Muhammad Tanveer Sharif, Salman Ateeq, Hamza Haq, Ziad Mahboob, Aamir Ibrahim, Yasir Saeed Khan, Amal Sadiq Dawood, Effat Mehmood, Maria Urooj, Zain Warsi, Mehreen ZulQiqar, Awais Saleem, Zafar Iqbal, Syed Osman Iqbal Zaidi, Anum Yaqub, Fahad Ali, Obaid Iqbal, Zahid Hussain, Muhammad Ali Qureshi, Danish Siddiqui, Amir Arif, Arshad Ayub, Syed Mudassir Ali, Syed Hammad Hussain, Ayesha Qadri, Sheikh Samiullah, others of M/S Maersk Pakistan Private Limited.
DGValuationdirectstoreviseValuationRulingNo.987/2016 WAQAR AHMED ANSARI www.customstoday.com
irector-General Customs Valuation Surraiya Ahmed Butt directed Director Valuation Iqbal Muneeb to revisit the Valuation Ruling No. 987/2016 for removing deQiciencies in accordance with law and also taking on board the regular major importers as well as the representatives of Federation of Pakistan Chamber of Commerce & Industries (FPCCI) and Karachi Chamber of Commerce & Industries (KCCI). According to the details, M/s Zam Zam Copper Electronics agitated against Valuation Ruling No.987/2016 that the department has not made the working/calcu-
lations properly while notifying the customs values of the networking equipment. They also agitated against the price parity maintained between the networking equipment from various regions. The departmental representatives explained the valuation methodologies adopted by them to arrive at the customs values determined vide the impugned ruling. After detailed deliberation of the case, Director General Surriya Ahmed Butt advised Director Customs Valuation Iqbal Muneeb to revisit the Valuation Ruling No. 987/ 2016 for removing the deQiciencies. Meanwhile, Customs Valuation Director General Surraiya Ahmed Butt has advised Valuation Director Iqbal Muneeb to revisit the
Valuation Ruling No. 884/2016 for removing deQiciencies in accordance with law and also taking on board the regular major importers
as well as the representatives of Federation of Pakistan Chamber of Commerce & Industries (FPCCI) and Karachi Chamber of Com-
— Exclusive Customs Today photo
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KARACHI
DG Valuation Surriya Ahmed Butt
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).
merce & Industries (KCCI). According to the details, M/s Zameer Traders agitated against Valuation Ruling No.884/2016 that the department has not made the working/calculations properly while notifying the customs values of the rackets of different kinds. They also agitated against the price parity maintained between the rackets from various regions. The departmental represen tatives explained the valuation methodologies adopted by them to arrive at the customs values determined vide the impugned ruling. After detailed deliberation of the case, Director General Suraya Ahmed Butt advised Director Customs Valuation Iqbal Muneeb to revisit the Valuation Ruling No. 884/ 2016 for removing the deQiciencies.