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PAKISTAN’S FIRST INDEPTH NEWSPAPER ON CUSTOMS
26 ABC Certified Vol 75 Issue No. 16
Weekly Weekly
Karachi, Tue Dec 11 - Mon Dec 17, 2018
Regd. No, MC-1381
Price Rs. 50.00
INTRODUCING NSW
MULTAN
IMRAN ALI KHAN
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Dr Jawwad Agha says Customs introduced National Single Window system to remove trade hurdles. | SEE PAGE 09 | SETTING ASIDE VR
DG Suriyya Butt set aside customs values of suitcases of low end brands determined vide VR No.1341/2018. | SEE PAGE 04 | POSTING GROWTH
Lahore Customs Collectorate recorded a growth of 25% as it collected Rs 4.16 billion revenue. | SEE PAGE 02 | IMPOUNDING GOODS
SaeedJadoon’s Peshawar CollectorateofCustomsinitiated anti-smugglingdriveinKhyber Pakhtunkhwa. | SEE PAGE 03 |
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ederal Board of Revenue (FBR) assigned Rs3201.93 million revenue collection task for the month of December 2018 to Multan Customs Collectorate led by Collector Ambreen Tarar. According to details, the FBR has assigned monthly revenue collection target to the Collectorate for the last month of the second quarter of the Niscal year 2018-19. The Collectorate is allocated different revenue collection tasks under the heads of customs duty (CD), sales taxes (ST), federal excise duty (FED) and withholding tax (WHT) for the ongoing month of December 2018. The Collectorate is assigned customs duty revenue collection target of Rs848.86 million and Rs 2302.52 million target for collection of sales tax. The Federal Board of Revenue has given collection target of Rs 29.48 million in wake of federal excise duty for December 2018 to Multan Customs while it is given income tax task of Rs 21.07 million. Meanwhile, Multan Collectorate of Customs under the supervision of Collector Ambreen Tarar collected Rs 3537.597 million during the month
of November 2018. The Collectorate was assigned Rs3789 million revenue collection target by the Federal Board of Revenue for the month of November and it collected Rs3537.597 million against the set target. Multan Customs collected revenue under the heads of customs duty, sales tax, income tax, and federal excise duty (FED) during the above-said period. It collected Rs 1689.988 million against the assigned revenue task of Rs 1311 million under the head of customs duty during November. The Collectorate posted 29% growth in the collection of customs duty by collecting Rs378.988 million in November. The Collectorate generated Rs1064.837 million under the head of customs duty during the corresponding period of the FY 2017-18. Multan Customs made a collection of Rs 1805.057 million in wake of sales tax against the set target of Rs1805.057 million during November 2018. The Collectorate achieved almost 48.01% target of sales tax collection during the month. It collected Rs17.477 million against the assigned task of federal excise duty (FED) during the month of November 2018. The Collectorate earned 49% revenue during November 2018. On the other hand, it collected Rs30.820 million in wake of federal excise duty during the corresponding period of November 2017-18. The Collectorate of Customs collected Rs23.004 million against the assigned revenue task of Rs24 million in wake of income tax during November. It accomplished almost 96% revenue task of income tax during November. The Collectorate collected Rs21.837 million during the corresponding period of Niscal year 2017-18. Multan Customs collected additional sales taxes of Rs 3.074 million for the duration of November 2018. However, Multan Customs collected Rs3537.597 million overall revenue due to an effective strategy of the Collectorate and collected almost 93% revenue task during November.
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NATIONAL
DECEMBER 11 – DECEMBER 17, 2018
Qatari ruling family member moves SHC seeking re-export of 3 Toyota Land Cruiser
KARACHI: Sheikh Abdullah Khalid H.A Al Thani, member of Qatari ruling family, has moved the Sindh High Court (SHC) seeking permission of re-export of remaining three Toyota Land Cruisers out of 22 vehicles. Counsel for the petitioners stated in his constitutional petition that petitioner no: 1, Muhammad Hashim Khan is a businessman and has acquaintance with Sheikh Abdullah Khalid H.A Al Thani and sometime provides services to him on his annual or occasional visit to Pakistan.
Multan Customs collects Rs1047.635m as Petroleum Development Levy
Customs Appraisement collects Rs 4.16 billion, posts 25pc growth
MULTAN
LAHORE
www.customstoday.com ollectorate of Customs collected Rs1047.635 million under the head of petroleum development levy (PDL) during the month of November 2018-19. Sources told Customs Today that Multan Customs collected petroleum development levy from oil marketing companies on the clearance of ex-bonding of high-speed diesel (HSD) shipments from Multan Dry Port. Petroleum development levy is levied by the federal government on the oil marketing companies for clearance of high speed diesel and Multan Customs collected petroleum development levy on the clearance of high speed diesel. Multan Customs collected petroleum development levy of Rs1047.635 million from clearance of high speed diesel in November.The Multan Customs earned Rs4744.291 million under the head of petroleum development levy during the first five months of the fiscal year 2018-19.The Collectorate has observed a minor boost in the collectionofpetroleumdevelopment levyduringthefifthmonthofthecurrent fiscalyear.TheCollectoratereceivedalmost 97percentofitsrevenuecollectionthrough theclearanceofhighspeeddieselandother petroleumproductsfromthePARCOoilrefinerylocatedintheareaofMehmoodKot.
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Customs establishes ‘Mobile Registration Center’at AFU LAHORE
SAJID NAWAZ
www.customstoday.com ollectorate of Customs established ‘Mobile Registration Center’at Allama Iqbal International Airport under Devices, Identification, Registration and Blocking System (DIRBS) which was launched by the Government of Pakistan for the regularization of unregistered mobile phones in Pakistan. 31st December is the last date for registration of mobile phones. Collector of Customs Nasir Jamil Khan issued a notification in which it is stated that‘Mobile Registration Center’is established for the transparent and smooth clearance of un-registered mobile phones devices brought into Pakistan illegally through an informal channel. As per procedure of registration of un-registered mobile devices, the holder of mobile phone voluntarily approaches the‘Mobile Registration Center’at Air Freight Unit and files declaration along with copy of IMEI details of such devices in Microsoft excel format. Customs Staff posted at‘Mobile Registration Center’after detaining a mobile phone and cross checking the particulars like type, brand.
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M HAYAT
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ollectorate of Customs Appraisement recovered record amount in the wake of taxes during the month of November of Fiscal Year of 2018-19 with the increase of 25 percent. According to details available with Customs Today the Collectorate showed growth of 25 percent in collection of customs duty in the Nifth month of Ninancial year 2018-19. The Collectorate has collected Rs 4.16 billion against Rs3.3 billion collected during of November in the Niscal year of 2017-18. Customs Appraisement recovered 25 percent extra as compared to the Niscal year of 207-18 which is a new record in history. Collector Customs Appraisement has urged upon the customs ofNicers to make strenuous efforts for optimum revenue collection through trade facilitation and quick clearance of import consignments during a meeting held at Customs Mughalpura ofNice. Meanwhile, Customs Collectorate collected Rs1544 million under the head of customs duty (CD) during the month of November of Fiscal Year 2018-19. Collector Jamil Nasir Khan who is also holding look-after charge of Customs Preventive told Customs Today that customs collected overall revenue of Rs4126 million during the month of November under all heads. He said that Customs Preventive seized non-duty paid goods worth Rs292 million during the month of November, while the Collectorate collected Rs72 million
— Exclusive Customs Today photo
during the same period of the previous Niscal year. He said that during the month of November, the Collectorate of Customs Preventive detected three cases of mis-declaration which involved a revenue of Rs135 million while four accused persons were arrested and investigations against them are still in progress. Collector Jamil Nasir said that customs established a separate team at Air Freight Unit for scrutiny of unclaimed baggage which will submit its Ninal report in two weeks.
Collector Jamil Nasir Khan
Meanwhile, Collectorate of Customs Preventive Deputy Collector Mohammad Moazzam Raza transferred 6 sepoys with immediate effect. According to a notiNication, Sepoy Ali Haider is transferred from Headquarters to Airport TrafNic, Sepoy Basit Mahmood is from Customs Headquarters to Allama Iqbal International Airport (TrafNic) while Sepoy Mohammad Adnan who is currently performing his duties at Anti Smuggling Organization is transferred to Airport TrafNic.
Customs I&I team recovers Chinese origin auto parts worth Rs20m D LAHORE
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irectorate of Customs Intelligence and Investigation team raided a godown belonged to M/s Afzal Auto Center located at Chamra Mandi, Shuja Colony and recovered a huge quantity of non-duty paid auto spare parts worth Rs20 million. Sources told Customs Today on 1st December 2018 that Rubab Sikandar received actionable information that huge quantity of Chinese origin non-customs paid auto spare parts are dumped in a godown after which she constituted a raiding team under the supervision of Deputy Director Usman Tariq which also includes Intelligence OfNicer Hamid Babar,
— Exclusive Customs Today photo
IMRAN ALI KHAN
Directorate I&I Rubab Sikandar
Nadeem Ahsan, Abid Javed, Agha Sultan Haider and Tipu Sultan. Sources said that during initial investigations owner of the godown failed to produce any legal documents regarding import and storage of Chinese auto spare parts. Customs I&I team seized spare parts and transferred the same to Directorate of Customs I&I premises while further investigations are still in process till the Niling of this report. Meanwhile, Customs I&I team also impounded non-duty paid Mercedez Benz S8 vehicle near Shaukat Khanum Hospital. Sources said that when customs I&I team intercepted the vehicle, the driver parked the vehicle alongside the road and Nled away. Customs team impounded the vehicle and after registering a case started further investigations.
The notiNication further stated that Sepoy Abdul Rehman who is currently performing his duties at Headquarters is transferred to Airport (TrafNic) and Sepoy Mohammad Ali Mukhtar is transferred from State Warehouse (TNB) to Airport (TrafNic), Sepoy Abdul Waheed is transferred from Airport TrafNic to State Warehouse (TNB). All the above mentioned sepoys stand relieved from their duties with effect from 1.12.2018 with the direction to report at their new place of posting.
Mianwali ASO impounds non customs paid vehicle nti-Smuggling Organization(ASO) has successfully impounded illegally imported foreign origin Toyota Fielder car worth Rs1.9 million involving duty and taxes to the tune of Rs3.7 million. Sources told Customs Today that ASO authorities received credible information regarding smuggling of the vehicle which was brought into the country through illegal route. Soon after receiving the information, authorities concerned of ASO constituted a raiding party comprising under the supervision of Additional Collector Muhammad Saeed Asad which also included Superintendent Sardar Muhammad Choudhary, Inspector Tanveerul Haq, Amer Mumtaz, Bajwa Atif Mumtaz, Sepoy Ghulam Mohyuddin, Muhammad Iqbal and Hafiz Naseer. —CT Report
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NATIONAL 03
DECEMBER 11 – DECEMBER 17, 2018
SRB collects Rs35.9b tax on services in July-Nov
KARACHI: Sindh has emerged as the only province of the country to collect higher revenue on account of sales tax on services during the first five months of the ongoing fiscal year. Collection rose 13.28 per cent to Rs35.9 billion during the July-November period of 2018-19 compared with Rs31.69bn in the corresponding period last year, showed data released by the Sindh Revenue Board (SRB). During November the collection rose 20.06pc to Rs8bn from Rs6.6bn in the same month last year.
Quetta Customs recovers Iranian diesel worth Rs22m during crackdown
Peshawar Customs impounds goods worth Rs45.67 million
QUETTA
TARIQ DERYA
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PESHAWAR
IRFAN BAHADUR
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Collector Ashraf Ali ollectorate of Customs team recovered 108,000 liters foreign origin Iranian diesel worth Rs22 million during a crackdown on various check posts. Sources told Customs Today that the Collectorate launched a crackdown against foreign origin Iranian diesel which resulted in seizure of around 108,000 liters smuggled diesel at various check posts Collector Ashraf Ali formed special anti-smuggling teams under the supervision of Additional Collector Zubair Shah and Deputy Collector Maqbool Baloch and further directed Maqsood Durrani and Superintendent Niamat Kakar to curb the flow of Iranian origin diesel, therefore, all check posts were directed to take stern action in this regard. Teams at Surab check post at Khuzdar Surab highway, Kolpur check post Quetta-Jacobabad highway, Lakpass check post, Baleli check post and a dumping place on Quetta Jacobabad Road recovered around 108,000 liters foreign origin Iranian diesel worth Rs22 million. In this regard, the FederalTax Ombudsman (FTO) already issued a direction to customs authorities for rapid action against diesel smuggling. This diesel mafia consisted of unscrupulous elements who are also taking the advantage of meager staff of Customs, the vast area of the province and its annexure with Iranian border spanning thousands of miles.
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— Exclusive Customs Today photo
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ollectorate of Customs initiated anti-smuggling drive in Khyber Pakhtunkhwa to curb smuggling of non-duty paid goods. Sources informed Customs Today that Collector Mohammad Saeed Jadoon on directives from Chairman FBR ordered the staff to speed up the operation against smuggling of non-duty paid goods throughout Khyber Pakhtunkhwa (KPK) province. Customs anti-smuggling units thwarted several attempts of smuggling of NDP goods including tyres, cosmetics, foreign origin cloth and spare parts of cars in the past two days. The smuggle goods which arrive from Afghanistan through different routes at Kharkhano Market stores and then delivered to local markets, sources informed Customs Today. Peshawar Customs is striving hard to destroy the link between importers and distributors of foreign origin NDP goods. Recently the Collectorate also impounded 12 trucks of foreign origin cloth in a raid on a local market at Kharkhano. The MCC earned more than Rs 45.67 million revenue through auction of NDP goods in the past two months, sources informed. Apart from anti-smuggling drive, the customs department is also working to enlarge the net revenue collection by applying digital tools for the collection of taxes. Collectorate of Customs under the leadership of Collector Mohammad Saeed Jadoon has
achieved the milestone by achieving revenue collection target during the months of October & November of current FY 2018-19. The Collector Customs directed the customs ofNicers to curb smuggling and increase the net revenue collection by applying positive methods and good behavior. The Collector customs asked for
Collector Saeed Jadoon
better coordination between law enforcement agencies and importers in order to provide secure border for economic growth of Pakistan. Meanwhile, Directorate of Customs Intelligence and Investigation (I&I) team foiled another bid to smuggle huge quantity of narcotics worth Rs3.3 million. Credible information that a
sizeable quantity of narcotics would be smuggled from Punjab in a Toyota Prius car. In pursuance of the said information, the staff of I&I held a secret naka near Rashakai Interchange, district Nowshera. The suspected Toyota Prius car bearing registration no: LE-13-6873 was spotted coming from Peshawar side.
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04 NATIONAL
DECEMBER 11 – DECEMBER 17, 2018
Customs I&I notifies transfers, postings
KARACHI: The Directorate General of Customs Intelligence & Investigation has made transfers and postings within the directorate general. Superintendent Muhammad Anwar has been transferred from Rawalpindi to Lahore. Superintendent Tahir Iqbal has been transferred from Peshawar to Multan. Principal Appraiser Irshad Ali Shah has been moved from Lahore to Karachi. Intelligence Officers Sohail Murtaza and Khawaja Ziauddin have been transferred from Karachi to Lahore.
DG Valuation Surriya decides to set aside VR No 1341/2018
SC orders to release 350 vehicles parked at Peshawar Dry Port PESHAWAR
IRFAN BAHADUR
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KARACHI
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KARACHI
M.B RANA
www.customstoday.com he Customs court directed investigation officer to complete investigations and submit charge-sheet in a case of attempting to smuggle non-duty-paid cigarettes, flavoured sheesha tobacco etc. Investigation officer of Customs Preventive appeared before the court and sought further time to complete investigations and filing of charge sheet. The court granted his request and directed him to submit charge-sheet on next date of hearing. On last date of hearing, investigation officer submitted first information report (FIR) and informed the court that on actionable information, a team of customs department raided M/s Faheem Industries Plot No 275 Sector-27, Korangi Industrial Area, Karachi. He stated that during the raid, customs team recovered 300 dandas (long packets) Manchester (United Kingdom) cigarettes, 350 dandas Pride King size Class-A Cigarettes tradition blend of Germany, 2250 dandas Pine Light cigarettes made in Korea, 1100 dandas Violet Slim Menthol cigarettes (for duty free sale only produced as required by the consumer in EU), 200 dandas assorted brand foreign-origin cigarettes worth Rs2,115,000. He submitted that team also found 4900 boxes 1287.3 kilogram sheesha flavour worth Rs1,960,000, one container and one trawler bearing registration no: JT-5103 and after formalities, customs officials took all goods into custody and registered first information report. He argued that investigation in undergone and progress report will be submitted when completed. After hearing, the court took the FIR into court record and directed him to submit challan on next date of hearing.
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DG Valuation Surriya Butt
meetings and submit the requisite import documents. Therefore they did market surveys and notiNied Customs values accordingly. After due deliberation, Director General Surayya Ahmed Butt
observed that the applicants were not heard by the respondent Director Customs Valuation, Karachi while determining Customs values in the form of Valuation Ruling No.I341/2018.
Saeed Akram’s Appraisement East collects Rs38808.55 million C
MULTAN
WAQAR AHMED ANSARI www.customstoday.com
ollectorate of Customs Appraisement East collected Rs38808.55 million during the month of November 2018 under the head of all duty and taxes. According to details, Appraisement East collected Rs11245.78 million under the head of customs duty (CD), Rs12748.41 million as sales tax (ST), Rs14724.24 as income tax (IT) and Rs 89.58 as federal excise duty (FED). Earlier, Collectorate of Customs Appraisement East collected
— Exclusive Customs Today photo
Customs court seeks challan in foreign cigarettes, sheesha smuggling case
— Exclusive Customs Today photo
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irector General Customs Valuation Suriyya Ahmed Butt has set aside the customs values of suitcases (soft & hard) of low end brands determined vide Valuation Ruling No.1341/2018 and ordered that the previous Valuation Ruling No.915/2016 will hold the Nield for assessment purposes till a fresh Valuation Ruling is issued in this regard. M/s Nadeem Impex and others had approached the Director General Customs Valuation challenging the Valuation Ruling No.1341/2018 of suitcases that the values were issued without considering the fact and evidences, hence was not a speaking order and therefore completely mala-Nide, arbitrary without jurisdiction and of no legal effect. The petitioners submitted that the values of suitcases (soft & hard) of low end brands have been exorbitantly enhanced without getting any feedback or participation of the stakeholders. They agitated that due to sudden enhancement of values notiNied vide the impugned Valuation Ruling, the whole trade is going to be disrupted as their consignments are lying at the port and the values have been drastically enhanced – almost doubled as compared to the previous valuation ruling i.e. 915/2016. The departmental representative submitted that the petitioners/stakeholders were afforded opportunities of meetings however, they failed to appear in the
he dealers of vehicles stuck at the Peshawar Dry Port heaved a sigh of relief as they got the permission to take the vehicles parked at the Railways property for years over evading customs duty while importing through Afghan border to avail amnesty during the tenure of Pakistan People’s Party government. Sources told Customs Today that up to 350 vehicles were parked for over five years at the dry port as the customs authorities had refused to clear them because these were brought to be registered under an amnesty scheme for non-customs paid vehicles (NCP) in 2013. The customs officials were of the opinion that the vehicles were imported to be registered under an amnesty scheme for the NCP vehicles announced by the previous Pakistan People’s Party (PPP)-led federal government (2008-2013) to generate revenue. The vehicles were imported in March 2013 and were parked at the Peshawar Dry Port since then. The officials had taken the stance that the imported vehicles did not qualify for the scheme and therefore were not registered. Later,thedealersapproachedthe federalombudsman,whodecidedthecase intheirfavour.TheFederalBoardofRevenue (FBR)thenapproachedtheappellatetribunalagainstthedecision,butfailedtogetthe casedecidedinitsfavor.TheFBRlaterfiled anappealinthePeshawarHighCourt(PHC) againstthedecision,butitwithdrewits appealanddirectedthecustomsofficialsto clearthevehiclesafterrecoveryoffinefrom theimporters.ThoughtheCustomsofficials hadissuedclearancecertificatestothe dealers,itledtoarowbetweentheCustoms andRailwaysauthoritiesoverthepayment ofparkingandstoragecharges.
Rs39981.93 million during the month of October 2018 under head of all duty and taxes including Rs10574.48 million as customs duty (CD), Rs13845.16 million as sales tax (ST), Rs15471.04 as income tax (IT) and Rs91.25 as federal excise duty (FED). Collectorate of Customs Appraisement East collected Rs39986.5 million during the month of September 2018 under head of all duty and taxes including Rs11372.11 million as customs duty (CD), Rs13927.11 million as sales tax (ST), Rs14598.04 as income tax (IT) and Rs 89.24 as federal excise duty (FED).
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SPECIALREPORT
DECEMBER 11 – DECEMBER 17, 2018
Corruption is now taken as one of the world’s greatest challenges. It is a major hindrance against development and prosperity. Corruption in Pakistan hurts the economy as well as business
— Exclusive Customs Today photo
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DECEMBER 11 – DECEMBER 17, 2018
SPECIALREPORT 07
NAB is actively engaging with other institutions and intelligentsia for reforming their systems and regulations in order to curb the menace of corruption through mode of Prevention Committees
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08 EDITORIAL
DECEMBER 11 – DECEMBER 17, 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
Sin Tax, a welcome move
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he government, this time, has touched the tobacco consumers’ sensitive point by imposing Sin Tax. While speaking at a public health conference at Health Service Academy, the Minister for National Health Services (NHS) Aamer Mahmood Kiani revealed that a sin tax would be imposed on cigarettes and sugary beverages. The director general of NHS Ministry, Dr Asad Hafeez tried to justify the use of the term sin tax by citing examples from the rest of the world. Britain's excise tax on distilled spirits which was enacted in 1643 - can be considered as one of the earliest examples of a sin tax. The same article also says that the United States has a long history of taxation on alcohol, tobacco and gambling which first started in 1791. Dr Asad Hafeez said that tax on tobacco and sugary beverages is being charged in some 45 countries. The United Arab Emirates and the United Kingdom are among those countries. Last year in October, the UAE began taxing soft drinks and cigarettes "to curb the consumption of harmful products and attempts to introduce new sources of state income". It placed a 50 per cent tax on carbonated, sugary drinks, and a tax on energy drinks and tobacco products of 100 per cent. Confessed that there are many countries where the concept is in practice on alcoholic products, however, in Pakistan religious references take a different meaning. No one will resist the government in imposing more tax on the tobacco industry. Many people have consistently argued that the state must start taxing health hazards and damaging products a premium. Taxing such products is standard policy across the world, and the practice has been proved instrumental in bringing down the consumption of cigarettes and other such health hazards. Pakistan also needs to follow suit. Two reasons suffice for the case. First, the industry is loosely taxed. Second, tobacco use in the country is widespread. However, the vocabulary that the government is intending to use for the purpose is problematic. How is it sin to consume cigarettes let alone the carbonated drinks? It is very likely that the government may face resistance from the manufacturers over the nomenclature, as they would ask the state the same question. Moreover, taxing products on the perceived morality of something is a problem in its own right. The government’s decision to tax the hazardous products is a welcome move.
Curbing poverty through agriculture L
LAHORE
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ike every past government, the ruling Pakistan Tehreek-e-Insaf (PTI) has vowed to Night poverty in the country and has allocated a sum of Rs82 billion in this regard. The intervention to take people out of poverty is a much-needed step and response. However, the report, which details the area where the amount will be spent to Night poverty in the countryside, fails to recognise that most of the population that live in rural set up are victims of multi-dimensional poverty. Rural poverty cannot be fought with just focusing on the agriculture sector, though agriculture sector is in dire need of intervention by the government to put it on the right track. After making a minor correction on the state’s approach to combat poverty, this editorial appreciates that
the government’s transformative plan is an attempt to modernise the agrisector. The idea seems progressive. The reason that the proposal presented needs an appreciation is the fact that agriculture remains the best option through which the government can push for early economic recovery. The plan to invest in inputs is the best viable way. The package will help in the availability of inputs such as seedlings, fertilisers and other products. Furthermore, the government has rightly identiNied the need for improving water efNiciency. Pakistan is a water stressed country. Because of the out-dated water management strategy, we lose water worth $21 billion annually, Indus River System Authority (IRSA) lamented last year. Improving watercourses in Pakistan was direly needed. Hopefully, the government’s initiatives will save the minimum amount of water that the
The share of livestock in agriculture sector is enormous because of its overall contribution. Government intervention in livestock will indeed diversify it
document reveals that is 9 million-acre feet (MAF). Furthermore, making laserlevelling technology available will also help farmers to use water efNiciently. Availability of laser levelling technology alone can boost food security. The Ministry of Food is also determined to improve livestock that is one of the essential subsectors of Pakistan agriculture. This subsector contributes approximately 56% of value addition in agriculture and nearly 11 % to the gross domestic products (GDP). The share of livestock in the agriculture sector is enormous because of its overall contribution. The government intervention in livestock will indeed diversify it. The government deserves appreciation for all the schemes that it holds for revamping the agriculture. However, stress is again laid on the fact that the government should also formulate a comprehensive policy to tackle the issue of multi-dimensional poverty.
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NATIONAL 09
DECEMBER 11 – DECEMBER 17, 2018
Customs court approves remand of accused involved in betel nuts smuggling case
KARACHI: The Customs court sent suspect namely Abdul Rahim son of Shahdad Khan, Kalim Ullah son of Shah Muhammad, who were arrested in a case of attempting to smuggle non-duty paid betel nuts etc, to customs department on physical remand. Investigation officer of Customs Preventive produced the suspects along with First Information Report (FIR) and submitted that on an actionable information, a team of customs officials intercepted passenger bus (New Shandar Coach) bearing registration no: BSB-808 and recovered 101,000 pouches One-2-One brand and Indian gutka.
Customs Port Qasim earns Rs73b as CD during five months of FY 2018-19
Customs introduced NSW system to remove trade hurdles: Awais Agha
KARACHI
KARACHI
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ollectrate of Customs Port Qasim collected Rs73 billion as customs duty against last year’s collection of Rs58 billion in first five months of current Fiscal Year 2018-19 by registering growth of 25.86% year-on-year basis, according to official documents. According to the documents Customs Port Qasim collected Rs. 15 billion customs duty during the month of November 2018, which shows remarkable 18.64% growth against collection of Rs. 12.71 billions in the corresponding month of last year. During first five months the collection of sales tax stood at Rs.121 billion as against Rs112 billion on year-on-year basis whereas, collection of income tax is Rs.26 billion as against the last year collection of Rs.22 billion which shows 8% and 18% growth, respectively during the period under review. Customs Port Qasim has thus recorded unprecedented growth of 14% in total revenue collection from Rs.194 billion to Rs. 221 billion year-on-year basis in first five months of current fiscal year. MCC Port Qasim has thus contributed significant share in total revenue collection by the FBR during the period. This tremendous achievement occurred owing to the teamwork under the motivational leadership of Ch. Muhammad Javaid, Collector MCC Port Qasim.
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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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ember Customs Operations Dr Jawwad Uwais Agha has said that the Customs Department has introduced National Single Window (NSW) system to remove the trade hurdles in Pakistan. He said this while addressing a gathering organised by Pakistan Customs and International Finance Corporation (IFC) of the World Bank Group. “Pakistan Customs is now leading the project for the development of Pakistan’s NSW which will provide a single ICT platform to fulNil all regulatory requirements in relation to imports, exports and transit trade,” said Member Customs Operations. “NSW requires a legal framework that enables and deNines the conditions of electronic submission of documents, user authentication, data sharing and data archiving,” Agha added. According to Dr Jawwad Uwais Agha, Pakistan Customs and FBR are focused on improving the trade logistics, including regional integration, with focus on streamlining customs clearance procedures, to increase trade Nlows and improving performance on Trading Across Borders indicator of “Ease of Doing Business” reforms. Traditionally, the role of customs is to collect customs duties and taxes and to control illicit trade.
— Exclusive Customs Today photo
WAQAR AHMED ANSARI
Member Customs Operations Awais Agha However, due to its pivotal position ranking and reduction of cost of in the global supply chain, Customs trading across borders. is now the primary agency to He claimed Pakistan Customs ensure that trading across the has played a positive part in trade border is made easy and less costly, expansion and streamlining of Dr Jawwad Uwais Agha said. transit trade, and is now prepared Pakistan Customs’ automation to handle CPEC trade. efforts have contributed signiNiWeBOC Head and R&A Director cantly towards recent improve- Wajid said that most of the customs ments in ‘Ease of Doing Business’ administrations have moved from
paper-based customs management systems to web-based paperless customs solutions which are accessible on-the-go. This paradigm shift has been supported by the World Customs Organization’s (WCO). Since 2005, he said, Pakistan Customs has made concerted efforts to improve the efNiciency of customs clearance processes and facilitate trade by strategically introducing latest technologies in modernising customs. In 2011, Pakistan Customs started rolling out its indigenously developed paperless customs management system, named WeBOC (WebBased One Customs) to seaports, dry ports, airports and border stations, Wajid claimed. He said Pakistan Customs has taken signiNicant steps to promote digitalisation and automation in Customs clearance for enhancing the ease of doing business and to make the import/export procedures more transparent. Its Web-Based One Customs system is now among the largest IT systems in the government sector. Developed indigenously in challenging circumstances, WeBOC system is delivering solid results in optimising government revenue, facilitating trade and improving the efNiciency of customs clearance. WeBOC is completely paper-less, user-friendly and is available 24/7 for GD Niling and Electronic payment of duty/taxes. He further said WeBOC is electronically linked with traders, shipping companies, port operators, banks, warehouses, transport operators and all major government regulatory authorities.
APTMA seeks immediate measures to boost exports To,
Asad Umar, Finance Minister, Islamabad Dear Sir,
It is to highlight that Pakistan’s economy is facing worst conditions and your government should take immediate measures to boost exports. Enhance in exports will not only help reduce massive Niscal and current account deNicits, but also curtail rising trade deNicit gap, unprecedented devaluation of the rupee, highest discount rate in the region and high inNlation trend. Only the textile industry is capable to double its exports in the next Nive years. The government should address all the issues of the sector
on priority basis. Despite passing Nirst 100 days, your government is yet to adopt measures to reverse the trend. This drastic situation requires drastic measures and if corrective measures are not taken in the next 30 days, the economic situation of the country will further worsen. It is also worth mentioning that
some of the major issues are high cost of doing business, inordinate delay in payment of refunds of sales, income taxes and duty drawback to exporters, highest policy rate in the region, and shortage of basic raw materials, ie, cotton for meeting consumption requirement of the industry at competitive prices. Your government should give im-
mediate attention to the cotton crop. Four years ago, Pakistan had achieved the highest cotton crop of 14.87 million bales, which has now declined to 10.8 million bales as against the actual potential of 17.5 million bales annually. Resultantly, the spinning industry has to import around four million bales of raw cotton every year to meet its consumption requirements. Despite acute shortage of cotton, the previous government had imposed three percent Customs duty, two percent additional duty and Nive percent sales tax on import of raw cotton, which should be removed without any further delay. Best Regards,
Zahid Mazhar Chairman, APTMA (Sindh-Balochistan Zone), Karachi
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10 NATIONAL
DECEMBER 11 – DECEMBER 17, 2018
Customs directed to destroy unregistered mobile phones
ISLAMABAD: Federal Board of Revenue (FBR) has directed Pakistan Customs to destroy unregistered mobile phones. The FBR through Customs General Order (CGO) No. 07/2018 directed Customs to dispose of huge quantity of confiscated smuggled mobile phones in the wake of new regime when only Pakistan Telecommunication Authority (PTA) verified mobile phones would be active for phone networks operating in Pakistan. Through the CGO, the FBR explained a procedure for disposing of confiscated mobile phones and their registration with PTA.
Peshawar I&I seizes narcotics & vehicle worth Rs13.5 million near Chamkani PESHAWAR
TARIQ DERYA
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irectorate of Customs Intelligence and Investigation (I&I) recovered narcotics worth millions of rupees from Toyota Corolla car near Chamkani GT Road Peshawar. Sources told Customs Today that Director Dr. Arslan Subuctageen received information that a sizable quantity of narcotics would be smuggled from tribal areas in a Toyota Corolla car. In pursuance of the said information, the staff of Directorate of I&I Peshawar held a secret ‘naka bandi’ near Chamkani GT Road. Sources told that the suspected Toyota Corolla bearing registration no: LED-11-9569 was spotted coming from Peshawar side. It was signaled to stop but the driver of the vehicle abandoned the vehicle and managed to escape from the spot. The vehicle was searched on the spot by the staff of drug cell and found contraband (heroin powder) which was tactfully concealed in the cavities of the vehicle. The vehicle was then brought to the premises of the Directorate of Intelligence and Investigation where thorough search led to the recovery of 12 kilograms Nine quality heroin powder (gross) which was seized along with carrier vehicle. The estimated value of the aforementioned seized narcotics and vehicle is Rs 13.5 million (narcotics Rs.12 million and vehicle Rs1.5 million). FIR No.64 of 2018 lodged against an unknown driver-person and further investigation is underway.
— Exclusive Customs Today photo
M MULTAN
IMRAN ALI KHAN
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ULTAN: National Accountability Bureau (NAB) and Federal Investigation Agency (FIA) must recover alleged billions of rupees evaded by M/s Maersk Pakistan (Pvt) Ltd in wake of sales tax. Said Sales Tax Fraud amount of Denmark’s shipping company Maersk and its subsidiary in Pakistan may be utilized in the sponsorship of blasphemous caricature contest. Importers and exporters should boycott the company to stop them for any anti-Islam attempt in the future. It was stated by Chairman Quomi Tajir Etihad Sultan
Mehmood Malik while talking to Customs Today. He said that the tax department has shut its eyes on tax evasion of 150 companies in the country and they are imposing new taxes on the business community every day to accomplish their revenue targets. Billions of rupees alleged sales tax evasion by Maersk Pakistan is also another example where responsible institutions failed to fulNill their foremost responsibilities. He said that tax evasion of Maersk and other companies is badly affecting national economy as they are looting billions of rupees from genuine importers and exporters on clearance of shipments but they have not submitted due taxes by issuing
— Exclusive Customs Today photo
‘NAB, FIA must recover billions of rupees evaded by Maersk Pakistan’
Sultan Mehmood Malik
‘benaami’ invoices to clients to take illegal Ninancial beneNits. He said it shows negligence and failure of Sindh Revenue Board that Maersk Pakistan and others are evading billions of sales taxes and revenue but tax authorities failed to attach their movable and immovable properties and freeze their bank accounts. He said that an organized racket of a few corrupt tax ofNicials are also working for them and these dishonest ofNicials are generating huge kickbacks for offering their services to these mega tax evaders. InefNiciency of tax authorities and assistance of unscrupulous elements are causing huge economic crisis in the country and ‘we need to take serious actions
against them to guard our revenue’. Pakistan is requesting International Monetary Fund (IMF), World Bank and other countries to provide Ninancial aid for rescuing our economy but if we take action against tax evaders like M/s Maersk Pakistan Limited (Pvt) and recover looted amount, it will be much better for our economy than to take further loans, he added. He said that Pakistan cannot progress without the elimination of corruption. It is really unfortunate that a few greedy ofNicials of the government department are giving them free hand for tax evasions. He told that our tax system is very old and reforms in the tax sector are also need of the hour.
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CARTOONSSPECIAL 11
DECEMBER 11 – DECEMBER 17, 2018
Customs court directs accused lawmaker to cooperate in smuggling case
KARACHI: A Customs court has ordered Pakistan Tehreek-e-Insaf (PTI) MNA Muhammad Aslam Khan, elected from NA-254 Azizabad, to cooperate in the investigation process in the case pertaining to smuggling of electronic goods. The case was heard in the Karachi Customs court in which Muhammad Aslam Khan appeared. The court, extending Khan’s bail till January 24 ordered the MNA to cooperate in the investigation process. According to officials, Khan has been an absconder for a long time in the misdeclaration case.
Customs Appraisement West generates Rs24356.84 million revenue KARACHI
WAQAR AHMED ANSARI www.customstoday.com
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ollectorate of Customs Appraisement West generated Rs24356.84 million during the month of November 2018 under the head of all duty and taxes. According to details, Appraisement West collected Rs24356.84 million in November which includes Rs12658.14 million under the head of custom duty (CD), Rs8547.64 million as sales tax (ST), Rs3045.58 million under the head of income tax (IT) and Rs105.48 million as federal excise duty (FED). Earlier in October Collectorate of Customs Appraisement West generated Rs24257.37 million during the month of October 2018 under the head of all duty and taxes include Rs13406.18 million under the head of custom duty (CD), Rs7598.18 million as sales tax (ST), Rs3148.56 million under the head of income tax (IT) and Rs04.45 million as federal excise
duty (FED). During the month of September Customs Collectorate of
Appraisement West generated Rs 24336.28 million which includes Rs12602.13 million
under the head of custom duty (CD), Rs 7749.21 million as sales tax (ST), Rs3384.31 million
FBR collects Rs274 billion against assigned target of Rs313 billion
under the head of income tax (IT) and Rs 101.88 million as federal excise duty (FED).
Faisalabad I&I impounds container of imported auto parts FAISALABAD
NAEEM SHEIKH
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ISLAMABAD
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SHAHID MINHAS
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ederal Board of Revenue (FBR) collected Rs274 billion taxes during the month of November 2018 against the assigned target of Rs313 billion, recording revenue shortfall of Rs39 billion, it is learnt here. OfNicial sources told Customs
Today that the board is facing tough time while achieving the assigned targets where the board has recorded at least Rs99 billion of revenue shortfall during current Nive months of Fiscal Year 2018-19. The board has collected Rs1380 billions of taxes revenue (provisionally) within Nive months of the current Niscal years while the assigned target from July to November 2018 was
Rs1479 billion. Sources further said that during the month of October 2018, the board collected Rs270 billion against the assigned target of Rs315 billion posting revenue shortfall of Rs45 billion. While during July to October 2018, the board had collected Rs1106 billion against the assigned target of Rs1166 billion, sources confirmed.
irectorate of Intelligence and Investigation team impounded a container of auto parts near Allied Mor Sargodha Road Faisalabad in an operation. Sources told Customs Today that Customs I&I impounded a 20 feet container on a tip-off by an informer. The container was loaded with imported auto parts and the importer cleared the auto parts consignments from Karachi Port Qasim. During the comprehensive inspection of the vehicle, the I&I team recovered old and used doors for LTV cars 12, used diggy for LTV, used roof door, LTV 3, bonnets 3, bumpers 3, mudguards 6, back light and mirrors 11, gear livers 3, bumper fitted with lights 3, front hissa completed, 3 brake suverys, 3 used wipers and 3 cleaners. Customs team asked the importer Muhammad Waseem to submit original import documents for the verification of said goods. The importer provided documents to the Customs team for verification while the investigations are still underway in this regard.
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DECEMBER 11 – DECEMBER 17, 2018
Faisalabad Appraisement collects Rs4780.576 million from July to November
FAISALABAD: Collectorate of Customs Appraisement collected less revenue for (July-November) 2018 as it collected Rs4780.576 million against the set target of Rs6721.11 million. Sources told Customs Today, the Custom Appraisement was assigned Rs 4789 million revenue collection target in wake of sales tax (ST) but appraisement collected Rs2885.496 million during the above-said period. Under the head of customs duty (CD), Appraisement collected Rs1816.961 million against the set target of Rs1864 million by achieving target up to 97.5 percent.
Govt making efforts to bring reforms in tax system: Hammad Azhar ISLAMABAD
CUSTOMS TODAY REPORT www.customstoday.com
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tate Minister for Revenue Muhammad Hammad Azhar has said that government is making efforts to bring reforms in tax system to improve and simplify taxation system. Talking to a private news channel, he said efforts are underway to separate policy making and tax collection functions to facilitate the tax payers. He said due to the untiring efforts of the government the future economic outlook of the country was quite promising. The minister also rejected the notion that the country was facing any economic crisis. Meanwhile, The Minister of State for Revenues Hammad Azhar said that the government have developed IT solution to overcome smuggled phone with a gigantic estimate of Rs110 billion the said collection could be doubled than many sectors such as sugar and others. The minister was addressing in an event organized by SDPI, he termed tax collection agency as detrimental for collecting due taxes and said that now the government planned to move ahead with national tax agency instead of asking the taxpayers to Nile different taxes at federal and provincial levels separately. He said that the informal sector was the major problem and even chains of some formal sectors such as sugar, steel, plastic and others broke at certain stage so the FBR could not fully collect the due taxes. The minister said that the government will grant autonomy to
State Minister for Revenue Muhammad Hammad Azhar the FBR as part of long term agenda after placing ongoing reforms for separating policy from administration. We are going to use technology, integration of data from different avenues including 30 government agencies, separating tax policy from
administration for improving administration as tax policy measures had already exhausted through different measures in the past,”. Contrary to the claim of Minister for Finance Asad Umar for overcoming crisis, Minister of State
for Revenues argued in his address that Pakistan’s economy was in crisis mode and made a comparison between 2013 and 2018 and stated that the foreign currency reserves were doubled than current account deNicit (CAD) in 2013 but
now the CAD was doubled than foreign currency reserves. Talking about the IMF, he said that irrespective of political cost the government would undertake all those steps which would be in the interest of the country.
Shaheen Air International proprietors flee Pakistan without paying FBR & CAA dues T
ISLAMABAD
CUSTOMS TODAY REPORT www.customstoday.com
he proprietors of Shaheen Air International (SAI) have escaped Pakistan even after an appeal by the Civil Aviation Authority (CAA) to place their names on the Exit Control List (ECL). According to a media report, an ofNicial of CAA said a request had been forwarded to the interior ministry in September to immediately place SAI Chairman Kashif Mehmud Sehbai and Chief Executive OfNicer (CFO) on ECL since they may escape from the country.
The CAA ofNicial added but the request wasn’t heeded too by the relevant authorities and both owners of SAI have managed to escape the country. SAI’s fortunes tumbled in April this year when it defaulted on payments of taxes and fee to the Federal Board of Revenue (FBR) and Civil Aviation Authority (CAA) to the tune of Rs1.3 billion. Moreover, the CAA ofNicial shared the court had been moved against SAI for the recovery of the dues and indicated if the owners had been present in Pakistan, it would have been easier for the authorities to recover dues and
outstanding salaries. When asked about eight planes of SAI which are in the possession of CAA, the ofNicial shared these planes are grounded for their poor condition and it will charge the airline for using its parking.
In reply to a question about some eight planes of the SAI that had been in CAA possession, the ofNicial said: “No, these planes are grounded for their poor condition and the CAA will charge the SAI for using its parking.”
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).
Earlier this week, a national daily had reported the Saudi prince who had expressed willingness to invest in the airline pulled out from the deal to bail it out. SAI’s Chief Marketing OfNicer Zohaib Hassan told that the airline hasn’t announced any precise closure, however, its ofNices had been shut for the last two weeks, reported the media outlet. He added, they were waiting for resumption of work. The Saudi investor withdrew from the deal after becoming aware of the legal troubles surrounding SAI, told an employee who declined to be named.