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PAKISTAN’S FIRST INDEPTH NEWSPAPER ON CUSTOMS
26 ABC Certified Vol 75 Issue No. 32
Weekly Weekly
Karachi, Tue Apr 02 - Mon Apr 08, 2019
Regd. No, MC-1381
Price Rs. 50.00
ِIMPROVING PERFORMANCE
FBR received 1,762,873 tax returns, showing an increase of 455,806 return filers in first 8 months | SEE PAGE 06 | ISSUING VALUES
KARACHI
CUSTOMS TODAY REPORT www.customstoday.com
DG CustomsValuation issued customs values of Magnesium Silicate (fruit Fipener/Ethylene Ripener)throughVRNo1356/2018. | SEE PAGE 02 | RECOVERING NDP GOODS
Customs I&I recovered huge quantity of non-duty paid mobile accessories, vehicles, DVD players and ladies shoes. | SEE PAGE 04 | GENERATING REVENUE
Multan Customs generated Rs24.101m through auction of NDP vehicles and miscellaneous goods | SEE PAGE 02 |
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inance Minister Asad Umar has said Pakistan is likely to secure a bailout package from the International Monetary Fund (IMF) of between $6 billion and $12 billion by the middle of May 2019. After a meeting with the IMF, he said he hoped an agreement would be reached with the Fund by “late April, or Qirst half of May”. The package would be of between $6 billion and $12 billion. “We’re approaching the landing zone,” said Umar and added, “The gap between our position and the IMF’s is signiQicantly less than what it was a few months back.” A sticking point in the negotiations between the two sides seems to be the exchange rate management of the rupee, which has lost 33 per cent of its value since 2017 when compared to that of the dollar. “There is no conceptual difference between us and the IMF, the exchange rate needs to be reQlective of the market,” said Asad Umar. “How you implement it and the sequence in which those steps have to be taken, have been a part of the discussion.” Analysts say the IMF has been suggesting measures such as a free-Qloating rupee, which would result in a further devaluation of the currency, and structural changes such as widening of the tax base. The Pakistan Tehreek-iInsaf (PTI) government has been
grappling with a severe balance of payments crisis. That’s why some analysts have voiced concerns about whether it will be able to pay back loans it has taken and if it will be able to repay China for the $62bn it is receiving as part of the China-Pakistan Economic Corridor initiative. But Umar dismissed the suggestion that the country’s debt to China posed a problem. “I have a debt problem, a serious debt problem, but not a China debt problem.” In a recent interview, Prime Minister Imran Khan had said Pakistan was serious about ending its cash Qlow difQiculties. “I’m determined that this will be the last time Pakistan will ever have to go to IMF,” he said. “The country is really at a crossroads. We can’t go on as we have been running our governance system for so many years, we have to make these reforms, we have to balance our budget, we have to raise taxes.” A cornerstone of those reforms will be complying with conditions of the Financial Action Task Force (FATF), which has been scrutinising Pakistan’s performance vis-a-vis combating money laundering and funding of terrorism. “We believe that sufQicient steps are being taken” in this regard, said Umar. Experts say a green light from FATF would be essential to unlocking IMF money. “I think it’s naive to assume that there is no relationship between FATF and the next IMF programme,” said analysts, adding, “The IMF will probably demand some major changes in the banking structure, which are also the kinds of changes that are being sought by FATF.”
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NATIONAL
APRIL 02 - APRIL 08, 2019
SHC directs to release consignments of polyester yarn on bank guarantees
KARACHI: The SHC directed customs officials to release of the consignments subject to securing the disputed amount of duty and taxes before the concerned Collectorate in the shape of pay order/ bank guarantees in accordance with law on a petition filed by M/s M. Usman seeking release order of its consignments of polyester yarn detained by customs officials due to disputed valuation. Counsel for the petitioner stated that petitioner imported consignments of polyester yarn and filed Goods Declaration (GDs) according with law @ $1.49 per kilograms.
Deputy Collector Zainab Khawaja declares seizure of betel nuts as legal
DG Valuation issues customs values of Magnesium Silicate
LAHORE
KARACHI
ollectorte of Customs Adjudication Deputy Collector issued Order-inOriginal (ONO) declaring seizure of non-customs paid goods as legal. According to the details, Superintendent Anti-Smuggling Organization (ASO) intercepted 20 bags packed with betel nuts lying on Cargo United Goods Transport Company Adda Lahore. A person standing nearby of the said goods identified himself as Salahuddin. The examination of the goods was conducted in presence of a ‘munshi’ and other witnesses which led to the recovery of 20 jute bags and 2006 kilograms of Indian origin betel nuts. On demand, he failed to provide any evidence in support of legal import or lawful possession of the recovered betel nuts rather he verbally requested to grant some time to inform the owner of the goods for production of receipts. Therefore, the examined betel nuts were detained for three days under terms of Section 2 (kk) of the Customs Act, 1969. However, despite the lapse of given period neither the above-said owner nor any other person appeared in the office of deputy collector adjudication.
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Customs restores NTN of PIA after payment of Rs70m ISLAMABAD
TARIQ DERYA
www.customstoday.com ollectorate of Customs unblocked the NTN of PIA after payment of pending installment of Rs70 million. PIA had to pay duty and taxes on import of three aircraft. Sources told Customs Today that PIA imported three aircraft on dry lease which were released by Customs Collectorate (MCC) on advise of Economic Coordination Commission (ECC) to deliver the aircraft to PIA on monthly installments. The sources informed that total amount of duty and taxes payable on the three leased aircraft was Rs1452.79 million while Rs1042.71 million was paid till 22nd March 2019 whereas Rs410.08 million was outstanding amount. The sources added that considering the financial condition of company, PIA was agreed that payable amount would be made on monthly installments of Rs17.54 million, according to which demand notices were sent to PIA; however it failed to make a full payment almost every time due to which the remaining payment of installments accumulated to Rs147.74 million.
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CUSTOMS TODAY REPORT www.customstoday.com
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he Directorate General of Customs Valuation has issued customs values of Magnesium Silicate (fruit Fipener/Ethylene Ripener) through Valuation Ruling No: 1356/2018 under Section 25A of the Customs Act-1969. Earlier, there were several representations from importers in the meeting held on 12.3.2019 in which they contended that customs values of Magnesium Silicate (Fruit Ripener/Ethylene Ripener) are not reQlective of the prices in the international markets and therefore they need to be reviewed accordingly. Keeping in view the prevailing prices in the international markets, Directorate General Customs Valuation initiated an exercise for re-determination of the customs values of Magnesium Silicate (fruit Fipener/Ethylene Ripener) in terms of Section 25-A of the Customs Act, 1969. Several meetings with stakeholders were held in Directorate General to discuss the current international prices. The stakeholders were requested to submit invoices of imports during last three months showing factual value. Websites, names and e-mail addresses of known foreign manufacturers of the item in question through which the actual current value can be ascertained. Copies of Contracts made /LCs opened during the last three months showing the value of item in question. Copies of sales tax
— Exclusive Customs Today photo
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invoices issued during last four months showing the difference in price (excluding duty and taxes) to substantiate their contention. The view point of all participants was heard in detail and considered to arrive before arriving at the customs values of various brands of popcorn. Valuation methods provided in Section 25 of the Customs Act, 1969 were duly applied in their regular sequential order to address the valuation issue at hand. The transaction value method
DG Valuation Mukarram Jah
as provided in Sub-Section (1) of Section 25, was found inapplicable due to wide variation of values displayed in the import data, hence requisite information was not available to arrive at the transaction value. Identical / similar goods value method provided vide Sections (5) & (6) of Section 25 ibid were examined applicability to determine Customs value of subject goods. Earlier, customs values of hard disks (internal/external) vide Valuation Ruling No. 1353/2019.
Representations were received from MCC Appraisement-West, Karachi that hard disks of various capacities are being cleared at lower values. Therefore, Directorate General was requested to determine its customs value for uniform assessment. The brands of hard discs which are usually imported in Pakistan include Dell, Sony, Buffalo, G-Tech, Samsung, LG, Hyundai, Seagate, Western Digital, Transcend, ADATA, Toshiba, Silicon Power, Hik Vision, LaCie and other low end brands.
Multan Customs generates Rs24.101m through auction of vehicles & goods
Faisalabad ASO impounds non duty paid Toyota Rush jeep
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MULTAN
IMRAN ALI KHAN
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ollectorate of Customs generated Rs24.101 million through auction of non-duty paid vehicles and miscellaneous goods. According to details, the Collectorate held monthly auction of conQiscated vehicles and miscellaneous goods which were seized by Anti-Smuggling Organization in their different actions. Auction was held at Multan Dry Port near Sher Shah Bypass. The Collectorate encouraged general public to participate in the auction for generation of handsome revenue through disposal of conQiscated vehicles and miscellaneous goods. Bidders show their complete interest in bidding various vehicles and
— Exclusive Customs Today photo
M HAYAT
Collector Ambreen Tarar goods during auction. The Collectorate sold out all nine offered foreign origin vehicles successfully in Rs.10.45 million during auction.
All auctioned vehicles were of different brands and models including Grand Cherokee Wagon jeep, Toyota Vitz , Toyota Hilux Surf, Honda Civic car, Toyota Mark X, Toyota Fielder X, Toyota Corolla X and others in auction. Successful bidders deposited 25 % amount of the vehicle to Customs department after successful bid in auction. Multan Customs has also offered 43 lots of miscellaneous goods during auction and sold out 13 different lots of auto parts, skim milk powder, High Speed Diesel, POL products, foreign origin cloths, mobile accessories, electronic goods and others. Miscellaneous goods were sold out in Rs.13.651 million during auction. Remaining lots were rejected due to fewer bids offered by bidders during auction and rejected lots will be presented in next auction after revising their prices.
he Anti-Smuggling Organization (ASO) impounded a non- duty paid used Toyota Rush jeep model 2006 bearing registration number: BF-5887. The market value of the seized vehicle is Rs 1.7 million. Sources told Customs Today that Deputy Collector Aneeqa Afzal received information that some people are using non-duty paid vehicles which are brought into the country through an unauthorized route and without payment of duty and taxes. After receiving the information deputy collector constituted a raiding team. The ASO team intercepted vehicle near Ghulamabad Chowk and asked the owner of the vehicle who was Muhammad Wajid son to produce legal documents regarding the import of the vehicle but the owner failed to provide the same. —NaeemSheikh
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NATIONAL 03
APRIL 02 - APRIL 08, 2019
Customs Court accepts challan of artificial jewelry smuggling case
KARACHI: The Customs Court accepted interim challan and granted bail to suspects Alam Shah, Muhammad Ameen, who were booked in a case of attempting to smuggle non-duty paid artificial imitation jewelry, hair accessories etc. Counsel for the accused argued that his clients are innocent and falsely implicated in this case who are ready to face trial, therefore, court may grant them bail till final order in this case. After the hearing, court approved their bail against the surety of Rs100,000 and directed them to appear on next date of hearing for confirmation or otherwise.
Collector Nadeem Memon’s Appraisement East unearths duty evasion
‘NAB, FIA must take action against Maersk Pakistan, QICT’
KARACHI
MUBEEN HUSSAIN www.customstoday.com
MULTAN
IMRAN ALI KHAN
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ational Accountability Bureau (NAB) and Federal Investigation Agency (FIA) should take strict action against M/s Maersk Pakistan (Pvt) Ltd and Qasim International Container Terminal for collecting illegal demurrage and detention charges to address complaints of importers. Collection of exorbitant demurrage and detention charges from genuine importers is spoiling business environment in the country. This was stated by Advocate Muhammad Faisal Tangwani while talking to Customs Today about the mega scam of demurrage and detention charges. Blackmailing of M/s Maersk Pakistan (Pvt) Ltd and Qasim International Container Terminal (QICT) has constrained importers from clearance of their shipments due to illegal charges imposed in wake of demurrage and detention and these companies have created serious obstacles in clearance of genuine shipments of importers. He expressed that shipping companies should be charged under violation of laws and they are accountable for stealing huge revenue from importers through their blackmailing. He added that collection of demurrage and detention charges for the clearance of shipments without any speciQied agreement would be termed as criminal offense. Importers of South Punjab and other cities are facing blackmailing of shipping companies for the
— Exclusive Customs Today photo
he Intelligence Unit of Customs Appraisement East on the directive of Collector Dr Nadeem Memon has unearthed the evasion of millions of rupees duty and taxes under the umbrella of transshipment (TP). According to the details, on the directive of the Collector Nadeem Memon, Deputy Collector Raza Naqvi constituted a team comprising PA Saleem Qaemkhani, Senior Preventive Officer Malak Hashim, Adil Rasheed and sepoy Samar to conduct examination of a consignment imported by M/s Zulfiqar Traders of Faisalabad that had arrived from Malaysia to Pakistan International Container Terminal (PICT). The examination found the goods including new speakers, new household scissors, new stainless steel nuts/bolts, stainless steel pipe fittings, artificial jewelry, used circuit breakers, used air compressors, used valves, used medical equipment and other goods worth $50,581 but M/s Zulfiqar Traders of Faisalabad declared goods as one lot comprising old and used machinery worth $9,000 in the GD. The recoverable amount of duty and taxes stands at Rs3.77 million. Customs Collectorate (MCC) Appraisement East has lodged an FIR against M/s Zulfiqar Traders over mis-declaring the description, quantity and imports of banned items in the garb of new and used miscellaneous items to evade duty and taxes in millions of rupees. Further investigation has been started against M/s Zulfiqar Traders.
clearance of their legitimate imported shipments and shipping companies are charging baseless demurrage and detention charges; otherwise importers have to face inappropriate delay in the clearance of their shipments which also causes them Qinancial loss, he added. He said collection of excessive demurrage and detention charges from importers is indefensible act and these shipping companies are also spoiling business environment in the country which will also upset our national economy. He said that above-men-
Advocate Muhammad Faisal Tangwani
tioned shipping company and port terminal cannot charge any demurrage or detention charges if Customs provided a delay and detention certiQicate to importers so M/s Maersk Pakistan and the QICT are illegally charging huge amount of demurrage and detention to importers and these companies are breaching the set laws. He said that majority of genuine importers are compelled to pay extra money in shape of demurrage and detention charges for the swift handling of import shipments and if genuine importers refuse to pay ille-
gal demurrage and detention charges then they face unnecessary delay in the clearance of import shipments which cause them huge Qinancial loss as it enhances cost of doing business. He demanded that National Accountability Bureau and Federal Investigation Agency should take strict action against shipping companies involved in collection of excess logistic charges violating rules 603(q), 603(r), 604(p), 604(q) & 607(e), others under SRO 1220/2015 to protect importers from their blackmailing and recover looted amount from the shipping company and the terminal operator.
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04 NATIONAL
APRIL 02 - APRIL 08, 2019
Faisalabad I&I impounds non customs paid Mercedes Benz
FAISALABAD: Directorate of Customs Investigation and Intelligence has seized Mercedes Benz worth over Rs 27 million from Satiyana Road, sources told Customs Today. The sources said that the Customs team confiscated Mercedes Benz from Muhammad Yasir, a driver of an influential person. The vehicle seized on the directives of Deputy Director Khial Muhammad by the team led by Superintendent Muhammad Tahir Iqbal. The team impounded the vehicle under Customs Act 1969 and formed seizure report.
Customs I&I recovers smuggledmobileaccessories near Sagian Bridge LAHORE
M HAYAT
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KARACHI
M.B RANA
www.customstoday.com mran Khan son of Saifur Rehman, partner M/s Saifur Rehman & Brothers Private Limited, bonded carrier approached customs court for pre-arrest bail in mis-declaration and evasion of duties and taxes of Rs60,151,769. Counsel for the accused argued that his client is innocent and is falsely implicated in this case, who is ready to face trail, therefore, court may grant him bail till final order in this case. After the hearing, court granted him bail against the surety of Rs500,000 and directed him to appear on next date of hearing for conformation or otherwise. Earlier, investigation officer submitted FIR before customs court against proprietor/ partners/ directors of M/s Al-Jeeran Engineering, M/s Saifur Rehman and Brothers Private Limited & others and informed the court that on receipt of credible information, regarding a possible misuse of transshipment facility and a likely attempt to bring banned/ restricted goods into the country by way of mis-declaration by some unscrupulous/ criminal, the AIB (R&D) section started monitoring TP consignments in the customs computerized system and check consignment of the above mentioned importers. He further informed the court that as per the filed transshipment declaration the description of the goods in used auto parts quantity one lot weighing 25300 kilograms at declared/ self-assessed total value of US$6325 and container was opened for examination. Investigation officer stated the court that during the examination, customs officials found old and used dialysis machine assorted model, brand, Germany and Korea origins, 100 pcs. New Circuit breakers, assorted ampere, polere, brand Hager, IO, France 5767 kilograms, Ball Bearing & Roller bearing, brand NTN & Koyo, IO, Japan, 2467 kilograms and 1626 kilograms.
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Director Customs I&I Rubab Sikandar
market value of seized goods is Rs1 million. Customs team impounded the goods and vehicle and started investigation in this regard. Meanwhile, Directorate of Customs Intelligence and Investigation has auctioned the conQiscated vehicles, dry batteries, cosmetics and other items and generated Rs20 million revenue. Auction was conducted under section 2/205 of Afghan transit trade at warehouse on Multan Road. Sources told Cus-
toms Today that seized items including impounded cars, spare parts, CCTV cameras, wood, fabrics, Qloating glass, ball bearings, wires, polypropylene, printed sheets, shoes, iron and other goods were presented for the auction on ‘as it is where it is’ basis. LEDs of 32, 40, 42 and 60 inches were presented for auction. Interested parties and persons were allowed to check the goods to participate in auction before the Qinal auction date.
MULTAN
IMRAN ALI KHAN
www.customstoday.com irectorate of Customs Intelligence and Investigation (I&I) seized huge quantity of foreign origin tin plates worth Rs15 million during their action. Sources told Customs Today that Deputy Director Khial Muhammad Khan received credible information from its source that huge quantity of foreign origin goods will be smuggled through jurisdiction. The deputy director alerted his field intelligence staff by forming special team comprising Inspector Muhammad Umer, Inspector Qaswar Shah, Inspector Zafar and others to thwart any attempt of smuggling. Field Intelligence Unit of Sadiqabad intercepted suspected truck near Kot Sabzal check post for examination and recovered huge quantity of tin plate sheet which were packed in shape of rolled coil. The net quantity of tin plates sheets was almost 23000 kilograms during the action of Customs Intelligence. It was also revealed that recovered tin plates were American origin and their final destination was Gujranwala and said tin plates were consumed in the packaging industry for cans and closures, deep-drawn oil filter shells, metal hose, paint trays and more. Customs Intelligence staff asked the driver to produce documents regarding legal import of the recovered goods. But driver of the truck failed to produce any legal documents to justify its legal possession of said goods regarding the transportation of the recovered goods. Customs Intelligence teams seized said American Tin Plates under Customs Act 1969. Further investigations are still under process.
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Peshawar AFU foils bid to smuggle 5kg gold from Dubai through Emirates Airline C
PESHAWAR
IRFAN BAHADUR
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ollectorate of Customs Air Flight Unit (AFU) team deputed at Bacha Khan International Airport thwarted attempt to smuggle 5 kilogram gold from Dubai through Emirates Airline. OfQicial sources informed Customs Today that a passenger Asad Mansoor was arrived from Dubai through Emirates Airline. Gold was detected at the scanner. Initially he said it is 50 tola but eventually it turned out to be 5 kilograms.
— Exclusive Customs Today photo
Customs Court approves pre-arrest bail of partner of M/s Saifur Rehman & Brothers
— Exclusive Customs Today photo
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irectorate of Customs Intelligence and Investigations (I&I) recovered huge quantity of non-duty paid mobile accessories, vehicles, DVD players and ladies shoes. Sources told Customs Today that Director Rubab Sikandar received credible information about the smuggling of non-duty paid goods. She constituted an anti-smuggling squad under the supervision of Deputy Director Usman Tariq which also included Superintendent Saifullah Hinjra, Intelligence OfQicer Hamid Babar, Tipu Sultan, Ehtesham Naveed, Nadeem Ahsan and others. The team intercepted a container near Sagian Bridge which belonged to New Shadab Goods Forwarding Company and was coming from Peshawar. During checking, the team recovered power banks, mobile accessories and ladies shoes. The team asked the driver to produce legal documents regarding possession and transportation of these goods but they failed to do so. Customs Intelligence and Investigation team seized the entire goods and after registering a case started investigations. During another operation near Sundar Industrial Estate, Customs I&I team recovered huge quantity of under-garments. These goods were booked by a person who was identiQied as Asad resident of Karachi for onward delivery to a Zahid of Shah Alam Market. The
Multan I&I seizes huge quantity of tin plates worth Rs15 million
Customs Inspector Fazal Bacha told that the same accused was apprehended in the past too. Customs team arrested the Asad Mansor and registered FIR against him for smuggling illegal gold in larger quantity than deQined in customs rules for entry into Pakistan. Customs acts have speciQied the limits up to which gold could be brought in legal way but for extra earnings the smugglers tend to hide them in baggage. Assistant Collector Airport Mohammed Ali Arif appreciated the performance of Inspector Fazal Bacha to curb smuggling.
www.customstoday.com APRIL 02 - APRIL 08, 2019
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— Exclusive Customs Today photo
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SPECIALREPORT 07
APRIL 02 - APRIL 08, 2019
ISLAMABAD
CUSTOMS TODAY REPORT www.customstoday.com
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ederal Board of Revenue (FBR) has received 1,762,873 tax returns against the returns of 1,307,067 of the corresponding period of last year, showing an increase of 455,806 return Qilers in Qirst eight months of current Qiscal year. These views were expressed by FBR Member Inland Revenue Policy Dr Hamid Ateeq Sarwar during a media brieQing. He said the FBR had collected revenues amounting Rs2,330 billion against the set targets of 2,566 billion. During the period under review, FBR had received 455,806 new tax returns against the same period of last year. He said the government had Qixed revenue collection targets at Rs4,398 billion for Qiscal year 2018-19 in order to tackle with the Qinancial requirements of the country, adding that it was set to collect Rs 2,566 billion by end of last month (February). An amount of Rs2,330 billion was collected against the set target, showing an shortfall of Rs. 236 billion, he added. He said the FBR was determined to bridge the gap by enhancing its enforcement and bringing the potential taxpayers under tax net. He said the main reasons behind the revenue shortfall was Qluctuation in prices of petroleum products including LNG and furnace oil in international market as the government had decided to absorb these shocks by itself and
reduced tax rates on PoL products to facilitate the common man in the country, adding it was provided accumulated revenue losses of Rs75 billion. He said previous government step to increase the exemption on salaried income from Rs. 400,000 to Rs. 112,000 created revenue shortfall of Rs. 35 billion, besides an amount of Rs. 55 billion was faced due to government measures for Qiscal correction. He said the other reasons in revenue shortfall were attributed to import compression that was introduced to bridge the current account deQicit that had brought down the imports and
The govt was not considering any new tax amnesty scheme but FBR was negotiating with chambers of commerce to promote tax filing culture, says Member FBR Dr Hamid Ateeq Sarwar
reduced revenues by Rs20 billion, adding accumulated revenue losses of Rs15 billion were faced due to other sectors including cement, fertilizers and ban on the purchase of vehicles by the non-Qilers. The member FBR further informed that refund bounds worth Rs15 billion were auctioned and the people had started to opt the schemes, adding that 78 claims were so far received. He clariQied that there was no change in tax on cash withdrawal from the banks, adding that it was still 0.6 up to cash withdrawal of Rs. 50,000 for non-Qilers. Hamid Ateeq said there was no tax amnesty scheme under consideration, adding that FBR was negotiating with chambers of commerce to promote tax Qiling, adding that in Qirst phase it would be introduced in federal capital from April Qirst. Meanwhile, Member Inland Revenue Operations Seema Shakil told that during current enforcement campaign 424 raids conducted which raised revenue demand of Rs 8.2 billion, adding Rs3.8 billion were recovered during the campaign. She said during the campaign, 9 persons were arrested, where as warrants were served to 2 persons, 46 vehicles and 78 bank accounts were attached and recovered Rs. 8.2 billion. She said the raids were suspended temporarily in mutual consensus of trade bodies and FBR as they had ensured the full tax compliance in a meeting with chairman of the board. Under broadening the tax base, 6000 new potential taxpayers were identiQied in mega malls of Karachi, Lahore and Islamabad.
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08 EDITORIAL
APRIL 02 - APRIL 08, 2019
Founder & Chairman Zulfiqar Ali CEO and Chief Editor Asad Kharal Editor Rahil Yasin editor@customstoday.com.pk For advertising & subscription marketing@customstoday.com.pk www.customstoday.com Phones: 042-35781643-4, Fax: 042-35781645 Address: 627, Siddiq Trade Centre, Gulberg, Lahore
EDITORIAL
Poverty Alleviation Plan
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he steps announced by Prime Minister Imran Khan as part of his anti-poverty initiative 'Ehsaas' sound innovative and sincere. The amendment to Article 38 (d) of the Constitution to redefine access to food, shelter, clothing, health and education as a fundamental right would certainly, in a legal sense, change the relationship of the state with its citizenry. Along with this, Mr Khan also announced an increase in the amount of money the state intends to spend on underprivileged segments of society from Rs80bn to Rs120bn by 2020. The prime minister also announced a new ministry for social protection and poverty alleviation would be set up, though the details were scant. All of these are sound priorities to pursue for a leader, and there can be little doubt that Mr Khan, on his part, has shown a sincere desire to deliver to the poor. The problem is with the path forward. In the past, too, we have heard the prime minister speak about stunting in children and malnutrition, and the distribution of poultry as income support for low-income households. To date, there is scant evidence that much has been done to follow up on these announcements. To earnestly improve access to food, shelter, clothing, health and education, far more than constitutional amendments will be required. The prime minister said that after the amendment has been made, any citizen would be able to approach a court and demand his or her fundamental rights. The first thing that will be required will be the numbers in parliament to make this amendment to the constitution. Given the kind of relationship that Mr Khan and his government have with the opposition parties, this looks like a challenging task. Second, the capacity of the state to actually produce results is debatable. What is obstructing better health and education outcomes at present is not the fact that they are not legally recognised as fundamental rights. Instead, the challenge lies in the lack of resources, overlapping jurisdictions, and the absence of any commitment made by the political elites to prioritise social welfare objectives and give their undivided attention to the task. A constitutional amendment will give the courts the power to carve a role for themselves in the provision of social services, but this does not mean that the judiciary would be able to deliver the services in question. It is good for Pakistan that its leadership should speak of poverty alleviation and social service delivery as important priorities of the state, and seek innovative ways to improve performance in these crucial areas.
Economic Council's suggestions to PTI govt T
LAHORE
CUSTOMS TODAY REPORT www.customstoday.com
he Economic Advisory Council, sans the three expatriate Pakistani economists holding noteworthy positions in foreign countries whose names were included by none other than Prime Minister Imran Khan and later dropped, has recommended that the collection of agriculture income tax be transferred to the Federal Board of Revenue (FBR) and the amount generated be credited to each province directly and not be made part of the federal divisible pool. This would preempt the need for an amendment in the constitution and at the same time allow the FBR to levy a rate commensurate with the income rate payable by other income groups.
The provinces may not oppose this move as their revenue would rise and with it the capacity of each province to undertake full responsibility for all the devolved subjects, including education, health and agriculture, as per the 2010 18th Constitutional Amendment. This in turn would not only raise the capacity of provinces' to generate surplus for balancing the federal budget but also lower federal government outlay on these devolved subjects. Or in other words, a win-win situation for provincial and federal governments. Those who may point to Pakistan Tehrik-i-Insaaf's (PTI's) government in the centre, a nonstatus quo party, as a possible major player in the implementation of EAC's recommendation need reminding that our parliaments, federal and provincial, remain heavily represented by the rich
landlords. This was acknowledged by the World Bank Pakistan@100 report which states that, "an increasingly unequal distribution of landholdings... and a failure to reform a land tenure and agricultural system that signiQicantly favoured large landholders gave rise to a politically inQluential landholding class in the agriculture sector." Dr HaQiz Pasha, former Qinance minister and an eminent economist, while addressing a recently-held National Tax Conference organised by the Institute of Chartered Accountants of Pakistan urged the government to undertake 10 percent audit which he estimated would generate between 150 to 200 billion rupees and end the culture of issuing statutory regulatory orders (SROs) that grant special concessions to speciQic groups.
Both these suggestions also conform to PTI's manifesto and the International Monetary Fund's (IMF's) standard normal conditions requiring a country seeking a bailout package to expand the purview of audit as well as not to issue sector speciQic Qiscal incentives. Other tax reform measures were also recommended during the conference including (i) integration of all tax revenue authorities, federal and provincial, in a way that each authority would provide a one-window solution for the taxpayer enabling interadjustment of refunds and one return for both federal and provincial authorities; (ii) invoice veriQication software STRIVE to be implemented at the provincial level; and (iii) FBR should coordinate with all relevant authorities given that all major transactions require a CNIC number.
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NATIONAL 09
APRIL 02 - APRIL 08, 2019
Jhang ASO seizes non duty paid ceramic tiles
JHANG: The Anti Smuggling Organization Jhang seized ceramic tiles worth Rs 33 million and also impounded Bedford truck worth Rs 4 million being used for smuggling. Sources told Customs Today that Collector Mirza Mubashir Baig on tip off directed the ASO team to conduct operation near Garh Mor district Jhang. During the search operation customs officials intercepted Hino truck bearing registration no: TKX-935 and found ceramic tiles 2520 Sadra ceramic tiles and co made in Iran.
Customs ASO recovers huge quantity of smuggled goods near SITE area
‘Adjudication seeks Customs Pole Funds from FBR for smooth functioning’
KARACHI
ISLAMABAD
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ollectorate of Customs Preventive ASO confiscates huge quantity of smuggle goods worth million of rupees. According to the details, reacting over an authentic information provided by the higher authority, Deputy Collector PASO Headquarters Faisal Khan conducted a raid at dumping place near Shershah, SITE area. Sources told Customs Today that ASO informed customs that the team conducted raid at godown near Shershah, SITE area which resulted recovery of two thousand and fifty five cartoons of foreign origin smuggled soap. The recovered 2055 cartons of foreign origin smuggled soap was of Lux and Pears Brand which were counted as 140,640 pieces weighting fifteen thousand eight hundred and thirty kilograms worth Rs 2,216,200 in the market, added the Customs officer. Along with cartoons of foreign origin smuggled soap, smuggled three hundred bags of Betel Nuts weighting six thousand kilograms were also recovered during the successful raid, informed the Customs Preventive Anti smuggling Organization (ASO) officer. The recovered smuggled betel nuts worth Rs1,176,000 in the market and the total tentative cost and freight (C&F) value of seized smuggled goods is to the tune of Rs 3,392,300. Two culprits were also apprehended during the raid, the case against the crime has been registered and further investigations are underway, added the customs Officer.
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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
TARIQ DERYA
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ollector Adjudication Shahnaz Maqbool has said that she has asked Federal Board of Revenue (FBR) to release Customs Pole Funds (CPF) because Adjudication department had insufQicient funds to run the Collectorate. She was addressing a farewell party in honor of two retired inspectors Muhammad Saleem and Muhammad Azhar. Talking on the occasion the Collector appreciated services of both of the retired inspectors and prayed for them to spend a healthy life after retirement. She said that she has learnt new things from junior staff working here at Adjudication. She suggested that all customs staff should work with dedication in all departments of customs like valuations, tariff, Appraisement and Adjudication so they can understand and get knowledge about all the Customs rulings and laws. She added that Customs ofQicials have no proper medical facilities which should be provided by higher authorities on urgent basis. Talking on the occasion, both the retired inspectors said that they found Customs department very efQicient and respectful institution. Inspector Muhammad Saleem said, “The Customs Common Pole Funds (CPF) are only used for BPS-17 and above ofQicials but CPF is not used
— Exclusive Customs Today photo
MUBEEN HUSSAIN
for Customs staff under BPS-16”. At the end of the event, souvenirs and banquets were presented to the retired Customs ofQicials. Meanwhile, The Additional Collector Adjudication ordered outright conQiscation of the tampered Honda city car which was seized by Directorate of Customs Intelligence & Investigation Islamabad. According to the details, Additional Collector Jahan Bahadar examined all the record of non-duty paid Honda City car
bearing registration No.RLF1652 1590CC having chassis no:GD810077131 and various opportunities of hearing were provided to the respondents in said case but they remained failed to appear, which means that they have nothing to offer in their defense hence ex-part action is justiQied and the charges leveled stand established. Additional Collector said that on 1st January 2019 the car cell impounded the above-said vehicle from Chairing Cross Rawalpindi
Fake FIRs against high value taxpayers To,
Hammad Azhar, Adviser to PM on Revenue, Islamabad Dear Sir,
I want to draw your kind attention over the registration of fake FIRs against high value taxpayers just to harass them, and it is a dangerous trend as it would discourage new investment and affect the growth of trade and industrial activities. Sir recently a person has registered fake FIRs against Mian Muhammad Adrees, Chairman, Sitara Group of Industries and former President, Federation of Pakistan Chambers of Commerce & Industry (FPCCI) just to harass and blackmail him. Such blackmailing tactics against a renowned industrialist and one of
while nobody came to claim while occupant of the vehicle Qled way from the spot. He added that the chassis of the vehicle no.NFBGE15426R136632 was physically examined and after laboratory test actual chassis number GD8-10077131 appeared which established that the said vehicle is of foreign origin and non-duty paid. After detailed examination of all the record it was established that the above said vehicle was non-duty paid so its conQiscation is legal according to customs laws.
ing through a difQicult phase and it was very important that government should create conducive environment for investors and businessmen to put the economy on the path of sustainable growth. For this purpose, government should provide full protection to investors and taxpayers. However, the trend of registering fake FIRs against taxpayers would prove harmful for the investment and the overall economy. I appeal to your kind hour to take notice of this situation and take stern action against those who were registering fake FIRs against the top taxpayers to harass them. Thanking you,
top hundred taxpayers of the country have created concerns among the
business community of the country. The economy of Pakistan was pass-
Ahmad Hasan Mughal President ICCI, Islamabad
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10 NATIONAL
APRIL 02 - APRIL 08, 2019
Customs inspector Mansab suspended
LAHORE: The FBR has suspended Inspector Mansab Shah, Inspector (BS-16) of Collectorate of Preventive with immediate effect for a period of three months. Sources told Customs Today that Inspector Munsab was reportedly caught red-handed on camera while minting money from the smugglers. In exercise of powers conferred under Rule 5(1) of the Government Servants (Efficiency & Discipline) Rules 1973, the Competent Authority has placed Mansab Shah, Inspector (BS-16), Customs Collectorate of Preventive under suspension with immediate effect.
‘South Punjab importers demand action against Maersk, QICT in mega scam case’ MULTAN
IMRAN ALI KHAN
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usiness community of South Punjab are deeply concerned over the collection of unreasonable demurrage and detention charges by M/s Maersk Pakistan Pvt Ltd and Qasim International Container Terminal (QICT) from importers and asked the government to take special measures for protection of importers from blackmailing of said shipping company and terminal operator. It was stated by renowned importer and Chairman All Pakistan Anjuman Tajiran Pakistan Khawaja Muhammad Suleman Siddiqui against the irregularities of Maersk Pakistan and QICT while talking to Customs Today the other day. He said Pakistan is vastly import-dependent country of the world and a few shipping companies are looting genuine importers by charging unjustiQied demurrage and detention charges from importers. Illegal demurrage charges by M/s Maersk shipping line and Qasim International Container Terminal (QICT) are causing disturbance in the business community of South Punjab. He said that importers of South Punjab are facing blackmailing of shipping companies for the clearance of their legally imported shipments. He said that importers and exporters from nationwide especially South Punjab are facing many challenges in the clearance of their genuine import and export
— Exclusive Customs Today photo
shipments. Business community is already operating their business in ambiguous atmosphere due to heavy taxation on them in Pakistan. Importers are trapped by different shipping companies and their agents by offering discount in their clearance charges and when importers hire them from clearance of their shipments due to discount charges, these shipping companies like M/s Maersk shipping line and QICT demand additional charges as
Khawaja Muhammad Suleman Siddiqui
demurrage and detention charges along with their usual duties. He expressed that shipping companies cannot charge any demurrage and detention charges until it is not agreed between parties and mentioned on the bill of lading. But M/s Maersk shipping line and Qasim International Container Terminal (QICT) are openly violating set laws and procedures by imposing demurrage charges and robbing huge revenue from importers through blackmailing.
According to the Customs Act of 1969, shipping company and port authorities cannot charge any demurrage or detention charges if Customs provides a Delay and Detention certiQicate to importers but allegedly even with this certiQicate Shipping company M/s Maersk shipping line and QICT are illegally charging demurrage amount to genuine importers without any justiQication. Business community of South Punjab is already facing different issues and importers are not in stable
position to afford blackmailing of demurrage and detention charges collected by M/s Maersk shipping line and Qasim International Container Terminal (QICT) due to ongoing economic crisis in the country. He demanded from Pakistan Tehreek-e-Insaaf government to protect importers from blackmailing of said shipping companies and take strict action against M/s Maersk shipping line and QICT for collecting illegal demurrage and detention charges from importers.
FBR recovers Rs8.2 billion from tax evaders during ongoing drive T
ISLAMABAD
MUHAMMAD FAIZAN www.customstoday.com
he Federal Board of Revenue has tightened the noose around tax evaders and non-filers and issued 3000 notices and recovered Rs8.2 billion. Sources told Customs Today that Federal Board of Revenue recovered Rs8.2 billion from the tax evaders in ongoing recovery drive and crackdown. Sources said that the FBR has intensiQied its operations against the tax evaders. Sources said, FBR on March 26 arrested nine tax evaders from different cities. In addition, the department has attached 78
properties worth millions of rupees, besides conQiscating 46 luxury vehicles. Moreover, the tax ofQicials have attached 4,000 bank accounts of different persons. It is pertinent to mention that the tax department was facing a revenue shortfall of Rs233 billion in the Qirst eight months of the current Qiscal year. The prime minister, in recent meetings, gave a go-ahead to the department, ordering it to intensify the operation against the inQluential tax defaulters, including people from media, showbiz and real estate. Sources said that under the ongoing drive, the department has sent more than 3,000 notices, hoping to recover a big amount from them.
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CARTOONSSPECIAL 11
APRIL 02 - APRIL 08, 2019
Customs Court approves remand of suspects in NDP Lux, Pears soap smuggling case
KARACHI: The Customs Court sent suspects Naveed son of Muhammad Haroon and Tariq Ali son of Muhammad Akram to customs department on physical remand who are booked in a case of attempting to smuggle NDP Lux bar soap, Pears transparent soap, betel nuts and other contraband goods. Investigation officer of customs preventive produced above-named suspects along with First Information Report (FIR) and informed that on an actionable information, customs preventive team raided a godown situated at plot no 270 No 5 Haroonabad, SITE, Karachi and found 84,000 pieces of Lux bar soap.
PCA recovers Rs71.60 million on account of DTRE from M/s Tetra Pak (Pakistan) Ltd LAHORE
CUSTOMS TODAY REPORT www.customstoday.com
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irectorate of Post Clearance Audit (PCA), Lahore has recovered Rs 71.60 million on account of duty and tax evasion from Duty & Tax Remission for Export (DTRE) user, ofQicial documents disclosed. The document showed that the company engaged in manufacturing of packing material for dairy and juice industries obtained DTRE approval no KCUS/262/20072016 dated 20-07-2016 but raw material imported for onward export was found under-consumed. Accordingly on the directions of then PCA Director Asif Mahmood Jah, DTRE audit team comprising two audit ofQicers including Arshad Malik and Muhammad Jamil under the supervision of Additional Director Mrs Saadia Munib was constituted for conducting the audit of said DTRE approval, it was revealed. The desk audit of DTRE approval was conducted
and record was requisitioned from the DTRE user for detailed DTRE audit under Rule 307E of DTRE Rules notiQied vide SRO 450(I)/2001 dated 18.06.2001. M/s. Tetra Pak (Pakistan) Limited, Lahore, obtained DTRE ap-
proval no. KCUS/262/200072016 dated 20-07-2016 from MCC Lahore to import different types of paper and paperboard, coated with Kaolin clay coated board, aluminum foil plain in rolls (6.3 micron thickness tolerance) rolled, but not further
worked, aluminum foil plain in rolls (9micronthicknesstolerance),polyethylene having a speciQic gravity of less than 0.94 (polymers of ethylene polyethylene LDPE), polyethylene having a speciQic gravity of less than 0.94 (polymers of ethylene polyeth-
Customs Preventive recovers huge amount of foreign currency from JIAP loader
ylene LDPE), and polyethylene havingaspeciQic gravity of less than 0.94 polymers of ethylene resin (adhesive polymer) for production of tetra pack packaging material printed and pre-creased in reels under DTRE scheme, the documents stated.
Multan I&I foils smuggling bid of betel nuts worth Rs12.5m MULTAN
IMRAN ALI KHAN
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KARACHI
MUBEEN HUSSAIN www.customstoday.com
ollectorate of Customs Preventive has apprehended a lodder Shaukat Ali of Royal Airport Services and recovered $22,175 from his possession. Sources told Customs Today that customs deputed at the international departure of the Jinnah International Airport (JIAP) on the information of
the higher authorities has intercepted a loader named Shaukat Ali of Royal Airport Services and recovered huge amount of foreign currency from his possession. The sources inform Customs Today that the raid was conducted jointly by the staff of Customs Preventive as well as Airport security force deputed at the international departure of the Jinnah International Airport (JIAP) to nab the worker. During the initial inves-
tigation the apprehended worker who is designated as loader of Shaukat Ali of Royal Airport Services at the Jinnah International Airport (JIAP) another person named Abdul Sammad outside the International departure was also nabbed by the customs staff. The recovered foreign currency which encompasses AED 28,000, $78,7400 riyal was to be handed over to undisclosed person by the loader Shaukat Ali.
irectorate of Customs Intelligence and Investigation foiled a bid to smuggle huge quantity of betel nuts worth Rs12.5 million. According to sources of Customs Today, Customs I&I high-ups received reliable information from their source that huge consignment of smuggled betel nuts will be transported through Sadiqabad route. Deputy Director Khial Muhammad Khan formed special team including Inspector Malik Muhammad Nasir, Inspector Umer, Inspector Qaswar Shah, Shakeel ur Rehman and others for thwarting any attempt of smuggling through jurisdiction and alerted them to remain vigilant. Customs I&I team intercepted the suspected truck of goods transport company which was loaded with dierent goods and recovered huge quantity of betel nuts during examination of loaded goods. Field Intelligence Unit of Sadiqabad has recovered 19 tons of betel nuts and driver of the truck informed Customs Intelligence sta that they were coming from Karachi and they were going to deliver the said betel nuts in Lahore.
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12
APRIL 02 - APRIL 08, 2019
Customs I&I impounds NDP cosmetics, cloth worth Rs10m
LAHORE: Customs Intelligence Investigation (I&I) has recovered illegally imported cloth and cosmetics worth over Rs10 million from the Sundar Industrial Estate. The illegally imported goods, according to sources, were transported illegally from Karachi. The sources said that a huge quantity of smuggled under-garments were also present in the container. The sources said that the container was sent by one Asad in the name of a trader of Shah Alam Market. Earlier, Directorate of Customs Intelligence and Investigations (I&I) recovered huge quantity of non-duty paid mobile accessories, vehicles.
‘Govt should stop blackmailing of Maersk, QICT to facilitate genuine importers’ MULTAN
IMRAN ALI KHAN
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he government should regulate all shipping companies to stop them from demanding illegal demurrage and detention charges from importers on clearance of shipments. Blackmailing of shipping companies especially M/s Maersk Pakistan (Pvt) Ltd and M/s Qasim International Container terminal (QICT) is portraying negative image of the country. It was stated by Chairman All Pakistan Power Looms Association (APPLA) Abdul Khaliq Qandeel Ansari while talking to Customs Today about blackmailing of abovementioned shipping companies. He said shipping industry played the crucial role in national economy as all importers and exporters take facility of shipping companies for the clearance of their legal shipments. Power loom industry is also an important segment of the textile industry of the country which avails the clearance facilities of shipping companies, but power loom industry is facing a great crisis which has forced factory owners to shut their looms due to power shortages and increase in the business cost. The production of machine-made garments was a beneQit for local industry and it was assisting textile sector but China and other markets have affected power looms industry. He said that government could not deny the importance of power looms as “spinning sector” exists with up-to-date technology in the form of medium and large-scale units, adding the “weaving” and
value-added sub-sectors are small ones with a technological gap. The non-mill weaving, power loom sector, supplies the majority of the fabric and indirectly exports total fabric production of about 16 billion square meters and 65% of this production comes from the power loom sector. But importers and exporters of power looms face blackmailing for payment of additional charges for the sake of demurrage and detention charges
by M/s Maersk Pakistan (Pvt) Ltd and M/s Qasim International Container terminal (QICT) during import of their raw material and machinery parts. He expressed that collection of illegal demurrage and detention charges by the shipping lines including M/s Maersk Pakistan (Pvt) Ltd and M/s Qasim International Container terminal (QICT) has increased manufacturing cost of local industrialists. He added that importers of
Power Looms and others are suffering heavy losses each day because of delay in release of imported goods due to unnecessary delay in clearance of shipments by M/s Maersk Pakistan (Pvt) Ltd and M/s QICT for illegal collection of detention and demurrage charges. Said shipping company and terminal operator are causing serious business complications for the importers by blackmailing them for the collection of unfair demurrage and detention
charges against the law because Customs has issued detention and demurrage certiQicates to importers for speciQic period but these shipping companies are violating law and regulations by collecting exorbitant charges. According to SRO 1220(I)/ 2015 and important Section 14-A of the Customs Act, 1969, ofQicials cannot charge any demurrage or detention charges after issuance of certiQicate from Customs Department.
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ISLAMABAD
TARIQ DERYA
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ollectorate of Customs Additional Collector Shahid Jan has been appointed focal person and coordinator for FBR’s PSDP funded project relating with development of Sost dry port. Sources told Customs Today, newly posted additional collector at Gilgit Baltistan (GB) has been asked to perform responsibilities as a focal person for Public Sector Development Project (PSDPs) including 649 and 651. The focal person has been asked to update
the Federal Board of Revenue (FBR) on every 7th of each month regarding development work by Qilling up the performa. The sources informed that focal persons will have to update the FBR regarding “PC-ii 649” which comprises design consultancy services for MCC Gilgit Baltistan, Directorate of China Pakistan Economic Corridor (CPEC), E-Facilitation Center Sost, Transit accommodation at Sost and Barracks for Customs sepoys at Sost. Shahid Jan will have to bring up-to-date information for FBR about PSDP “PC-ii 651” which includes purchase of land for estab-
— Exclusive Customs Today photo
Shahid Jan appointed focal person for FBR projects at GB & Sost dry port
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).
lishing Directorate of Transit Trade at GB for CPEC trade Facilitation. The designated Customs ofQicials will have to look after the projects until their transfer. Meanwhile, Khyber Pakhtunkhwa business community and Afghan traders have demanded that Torkham border must remain open round the clock to further strengthen mutual trade and business relations between Pakistan and Afghanistan. The demand came at a meeting with acting Afghan Consul General in Peshawar, Hashim Niaz, acting Afghan trade commissioner Hamid Fazal Khail, Afghan traders and transporters with SCCI president Faiz Mohammad Faizi.