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fACIlITATIng TRADERS

FBR Member Customs Zahid Khokhar says FBR makes all-out sincere efforts to facilitate business community. | SEE PAgE 02 | URgIng TAxPAPERS

FBR Member IR Policy Dr Iqbal urges people to benefit out of the amnesty scheme or get ready for action. | SEE PAgE 03 | IMPOUnDIng vEhIClES

ISLAMABAD

CUSTOMS TODAY REPORT Collector of Customs Appraisement Jamil Nasir impounded 14 vehicles which were imported from Japan. | SEE PAgE 11 | SIMPlIfYIng PROCEDURES

ADCZubairsaysstrivinghardto achievesecurityofbusinessesby simplifyingtradeprocedures. | SEE PAgE 09 |

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ustoms Today succeeded to prove its reports regarding green channel smuggling as Chief Justice of Pakistan Mian Saqib Nisar took notice of the issue and Directorate General Customs Intelligence & Investigation (I&I) admitted that green channel facility has been mercilessly abused by some syndicates in connivance with a few corrupt customs ofOicers.

Director General Customs I&I Shaukat Ali gave full weight to the complaint to the extent that the green channel facility at the ports has been “excessively misused” and recommended urgent action to arrest haemorrhage of state revenue.

This complaint was submitted by

senior investigative journalist Asad Kharal to Chief Justice Mian Saqib Nisar and repeatedly published in Customs Today newspaper against green channel illegal clearances worth Rs 1000 billion.

In a report submitted to FBR Chairman Tariq Mahmood Pasha after Chief Justice Mian Saqib Nisar took notice of the complaint of large-scale misuse of green channel facility and ordered the FBR Member Customs, Chief Collector Abdul Rasheed Sheikh and DG I&I to submit reply within 10 days, the Directorate General Customs Intelligence put up total blame on the Federal Board of Revenue (FBR) and the Customs Department while conOirming ‘merciless’ misuse of green channel facility with support of a few customs ofOicials.

After CJP’s notice, FBR advised Directorate General Customs Intelligence to submit its report. As per

report, Directorate General Customs Intelligence & Investigation (I&I) placed on record that Green Channel facility has been callously abused by some syndicates of unscrupulous fraudsters and the possibility of connivance of few customs ofOicers cannot be ruled out.

The above comment emanates from the Directorate General’s experience of detection of Green Channel related cases and adverse reaction of some ofOicers/ofOicials in Customs hierarchy.

The Directorate General also mentioned in the report that strong recommendations of placing under suspension some Customs ofOicers/ofOicials suspected to be involved in facilitating the misuse of Green Channel facility repeatedly made by the Directorate General have been ignored

by FBR. Thus, the manipulators inside the department do not feel

discouraged enough to refrain from extending their helping hand to the fraudsters.

In addition to the above, whenever the Directorate General detected cases of misuse of Green Channel in the recent past, collectorates particularly MCC East Karachi, MCC West Karachi, MCC Port Qasim and MCC Appraisement Lahore have reacted sharply against the action taken by the Directorate General of Customs Intelligence & investigation and attempted to protect the fraudsters.

Directorate General Customs Intelligence & Investigation notes that non-action on part of FBR and adverse reaction of collectorates practically placed hurdles in the way of the Directorate General Customs Intelligence & Investigation to effectively check the misuse of the green channel facility at ports.

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JuNE 26 - JuLy 02, 2018

ShC seeks comments on petition filed by M/s Saiban International

KARACHI: The SHC issued notices to the customs department and deputy attorney general directing them to file their comments on a constitutional petition filed by M/s Saiban International seeking release order of consignments of tyres and change of consignee in its favour. Directives were issued by a division bench on hearing.

During the hearing, counsel for the petitioner stated in his constitutional petition that it is engaged in the business of import of tyres and tubes from various countries around the world including from China.

CollectorExport SaqifSaeedrecovers Rs8.25mfrom M/sKazim&Sons

fbR making sincere efforts to facilitate business community: Zahid khokhar

KARACHI

SIALKOT

he Collector Export Saqif Saeed on recovered evaded amount of taxes and duties of Rs8.25 million from defaulter companies which were issued with notices to pay the outstanding dues.

Sources told Customs Today that, during scrutiny of the import data, it was revealed that M/s Kazim & Sons availed undue benefits and concessions by importing various kinds of tin pack juices and pine apples pieces by misusing the SRO 552 through Examiner Raheem M. Khan on 7th November, 2017.

Sources told that the company was allegedly involved in tax evasion of Rs5 million. Investigations were continued, after detecting the tax evasion, the Customs Export issued it with a final notice on 4th June, 2018 to deposit the evaded amount within 14 days.

After receiving the notice, the management of M/s Kazim & Sons deposited the evaded amount in the official account of the Customs Export on 22nd June 2018.

Another Company, the management of the M/s Anjum Associates also cleared Rs 3.25 million of taxes and duties. Sources told the correspondent that M/s Anjum Associates also availed undue benefits and concessions and avoided paying taxes according to the customs bylaws.

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PCA detects tax evasion of Rs11.42 million KARACHI

CUSTOMS TODAY REPORT www.customstoday.com

he Directorate of Customs Post Clearance Audit (PCA) Director Nadeem Memon detected duties and tax evasion of Rs 11.42 million by M/s Samama Leather Manufacturer & Export, it is learnt here.

Sources told Customs Today that M/s Samama Leather Manufacturer & Export, Karachi imported a consignment of leather punching machinery, and different chemicals, got it cleared from the QICT Karachi vide GDs 7058 on December 19, 2017 by paying customs duty at 10 percent after claiming the benefit of the SRO 558/2007. However, the subject items were correctly classifiable under the PCT 2547.2508 attracting customs duty at 16 percent and income tax at 8 percent, thus, by way of mis-declaration of classification, the company evaded/short-paid Rs 11.42 million.

The goods were cleared by Appraiser Qadeer Shabbir. Sources told that the importer violated the provisions of Section 58 (7-A) of the Customs Act1969, Section 28 read with Section 48 of the Sales Tax Act-1990.

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ederal Board of Revenue (FBR) Member Customs Zahid Khokhar said that the Federal Board of Revenue (FBR) was making all out sincere efforts to facilitate the business community besides resolving exporters’ problems on priority basis.

He stated this while addressing an important meeting of the Sialkot exporters held at Collectorate of Customs. He said that the FBR was also ensuring the level playing Oield for everyone besides providing the conducive atmosphere to the exporters enabling them to struggle hard with full devotion, dedication, enthusiasm and complete peace of mind for increasing the national exports.

He said that all the hurdles/obstacles would be removed from smooth way of promotion of national exporters by facilitating the business community and exporters as well. FBR Member Customs Muhammad Zahid Khokhar highly hailed the Sialkot exporters’ pivotal role in strengthening the national exports, saying that the Sialkot exporters were the pride of Pakistan by earning foreign exchange to the tune of US$ 2 billion annually.

He said that the Sialkot exporters have set the unique examples of self-help by establishing several mega projects including Sialkot international airport on self-help basis, advising others to replicate it.

He said that the Sialkot exporters have made marvelous socio-economic and human development on self-help basis. Muhammad Zahid

— Exclusive Customs Today photo

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Khohar (Member Customs, Federal Board of Revenue-FBR Islamabad) assured that the FBR was fully aware of the perturbing problems of the Sialkot exporters, saying that the FBR was making all out sincere efforts to ensure the early amicable solution to these problems on priority as well.

Meanwhile, senior Customs ofOicials also destructed huge quantity of foreign made contrabands cigarettes, expired edible items (dry milk powder, black tea, bubble gums), sports goods (imported /exported in violation of Intellectual Property Rights) , cosmetics, medicines and chemicals brought ille-

Member Customs Muhammad Zahid khokhar gally in the country, destroyed during a special ceremony for destruction of contrabands held at Collectorate of Customs Sialkot here.

The ofOicials said that every year the Collectorate’s staff seizes contrabands goods from Sialkot airport, import and export and Anti-Smuggling Organization (ASO) which are brought illegally in the country which are subsequently put to destruction. Due to the active Anti-Smuggling Operations and the vigilance of staff, the Collectorate of Customs Sialkot was able to conOiscate these goods, they added.

The contrabands destroyed includes 4706 bottles of liquor ,

Dr. Zubair Yousafani laid to rest D

ISLAMABAD

TARIQ DERYA

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irector ITTMS Dr Zubair Yousfani who passed away on Wednesday after second massive heart attack was laid to rest in Islamabad graveyard.

A large number of employees from Federal Board of Revenue, Customs, Inland Revenue and other government departments along with people from different walks of life attended his funeral prayer, which was offered at H-11 graveyard after Nimaz-e-Isha.

The 55-year-old customs ofOicer reportedly suffered a severe heart attack and passed away after reaching at PIMS hospital Islamabad on Wednesday around 5pm.

Zubair was a true professional officer and had a good command on International Customs and was a leading officer of Pakistan

— Exclusive Customs Today photo

wAQAR AhMED AnSARI

Dr Zubair Yousfani

Customs.

Talking with Customs Today Ali Raza Hinjra PD ITTMS said that he is still in shock at his untimely demise. He quoted “May Allah shower His eternal blessings on the departed soul and give courage to his family to bear this irreparable loss”.

Collector Customs Collectorate Islamabad Zulfikar Ali Chaudhry said that Dr. Zubair’s death is a shocking news for colleagues, adding that Zubair was a big asset for Pakistan Customs he will remain in our hearts always.

Member Customs Zahid Kokhar, Chief Customs North Awais Agha, Collector MCC Islamabad Zulfikar Chaudhry, Collector Peshawar Saeed Khan Jadoon, Additional Director I&I Rawalpindi Shahid Jan, Chief Enforcement FBR Muhammad Saleem, ex-DG I&I Imtiaz Khan and many other officers of FBR and Customs attended the funeral.

38000 tablets of expired and substandard medicines , 10000 packets of expired cigarettes, 100 cartons of expired food goods and huge quantity miscellaneous goods.

FBR Member Customs Muhammad Zahid Khokhar along with Chief Collector North Jawwad Uwais Agha and representatives of the law enforcement agencies (LEAs), customs department, military agencies, President Sialkot Chamber of Commerce and Industry (SCCI) Zahid Latif Malik, managements of Sialkot International Airport Limited (SIAL), Sialkot Dry Port Trust (SDPT) and leading exporters were present on this occasion.

ADC Imran Chaudhary issues show cause to owner of NDP vehicle he Customs Adjudication Additional Collector Imran Chaudhery issued a show cause notice against unknown owner of NDP Toyota Vitz car and ordered him to provide evidence against the vehicle otherwise case will be decided ex-parte.

Additional Collector Imran Chaudhary told Customs Today that Assistant Collector Customs Preventive received credible information that a non-duty paid Toyota Vitz car bearing registration no.LF-221 ICT, chassis no. SCP 10-0131039 model 2004 is smuggled one and is plying in the jurisdiction of Islamabad.

He said that in light of said information a raiding team comprising the Preventive staff was constituted, which established a check post near Golra Chowk Islamabad and intercepted the said vehicle which was coming from Rawalpindi side. —CTReport

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NATIONAL 03

JuNE 26 - JuLy 02, 2018

Customs Court approves remand of accused involved in betel nuts smuggling

KARACHI: The Customs Court sent suspects namely Muhammad Nazir son of Hakim Khan and Usman Ghani son of Haji Muhammad to Central Jail on judicial remand, who were booked in a case of attempting to smuggle contraband betel nuts. Investigation Officer Subedar, Muhammad Humayun produced the above mentioned suspects before the court and informed that on a credible information, a team of Pakistan Coast Guard intercepted a truck bearing registration number TKN-946 and recovered 17220 kg betel nuts.

FBR to take action against Shaheen Air over‘failure to pay FED’

Dr. Iqbal urges people to benefit from Tax Amnesty Scheme

KARACHI

CUSTOMS TODAY REPORT www.customstoday.com

ISLAMABAD

MUhAMMAD ARShAD www.customstoday.com

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ust eight days before the time limit the ongoing Tax Amnesty Scheme, the Federal Board of Revenue (FBR), urged the people to beneOit out of the scheme or get ready for action because FBR had collected the data of almost all the potential taxpayers through mapping of business plazas and other properties.

Moreover, in the changing international economic scenario it is almost impossible to maintain undeclared assets or bank accounts abroad because FBR will be legally empowered to have access to both the domestic and foreign currency bank accounts from the July 01, 2018. Addressing a press conference here on the ongoing Tax Amnesty Scheme FBR OfOicial Spokesperson & Member Policy Dr. Muhammad Iqbal said that due to OECD initiatives for promoting transparency and exchange of information on tax matters, offshore tax evasion and avoidance is higher likelihood of coming to the notice of tax administration.

“Pakistan is signatory to the Organisation for Economic Co-operation and Development (OECD) Convention on Mutual Administrative Assistance in Tax Matters which has been signed by most of the countries around the globe.

Pakistan is poised to receive information in the latter half of 2018 in respect of offshore Oinancial accounts” he maintained.

The said information of bank accounts maintained by Pakistanis

— Exclusive Customs Today photo

he Federal Bureau of Revenue (FBR) decided to initial legal action against Shaheen Air, a private airline of Pakistan, over alleged non-payment of excise duty amounting to around Rs490 million.

Talking to media persons, FBR Large Tax unit Additional Commissioner Nisar Burki said Shaheen Air owed federal excise duty (FED) of Rs497 million combined between April and June 15 for the current year.

He added the airline took FED from passengers by charging between Rs2,500 and Rs5,000 on each ticket, but did not pay the amount to national exchequer. Burki said FBR sent multiple notices to Shaheen Air but did not receive any response.

The officer added they would initial legal action against the airline as the deadline of paying the FED passed at 2pm.However, when asked, the spokesperson of Shaheen Airline said it was not in his knowledge if any such notice was sent by FBR. In May, FBR asked Civil Aviation Authority to suspend local flight operations of Shaheen Air over failure to pay FED. The FBR also directed a bank to attach all the accounts of the company with immediate effect. According to a letter sent to the director general of CAA, Rs521.397 million was recoverable from the Shaheen Air International Limited under Federal Excise Act, 2005.

abroad shall be provided by those jurisdictions automatically, he said that against this backdrop, amnesty on foreign assets was an opportunity for Pakistanis to declare undisclosed foreign assets at very low rates without incurring any penalties. Time limitation to probe sources of foreign assets, investments and expenditures has been removed through Finance Act, 2018.

As a result of this amendment, any foreign asset discovered in any year will be liable to be taxed.

He further added that immunity from probe in respect of foreign re-

Member IR Policy Dr. Muhammad Iqbal

mittances had been limited to Rs10 million per year through Finance Act, 2018. Any amount received beyond this threshold would be liable to be probed and taxed.

Through Finance Act, 2018, Oiling of foreign income and asset statement has been made mandatory and failure to Oile or disclose foreign assets in the statement shall be liable to penalty of 2% of the value of the assets or income for each year of default.

Law of controlled foreign companies has been introduced, he said, through Finance Act, 2018,

and any income from investment in foreign entities has been made taxable. Therefore, any investment and income there from not disclosed shall be taxed.

Responding to a question, he was optimistic about positive results of the scheme with observation that scheme had been prepared keeping the best international practices in view. Moreover the different tax rates for the declaration of domestic and foreign assets were also Oixed while going through amnesty schemes introduced by some other countries.

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JuNE 26 - JuLy 02, 2018

PCA detects tax evasion of Rs8.17m by M/s Shangi Auto Parts karachi

KARACHI: The Directorate of Customs Post Clearance Audit detected duties and tax evasion of Rs 8.17 million

by M/s Shangi Auto Parts, Karachi, it is learnt here. Sources told Customs Today that M/s Shangi Auto Parts imported two consignments of new and used vehicles engine and different kinds of auto parts and got it cleared from the PICT Karachi vide GDs 5627 on December 22, 2017 by paying customs duty low at 10 percent after claiming the benefit of the SRO 558/2007.

Collector AmbreenTarar forms special committee for settlement of disputes MuLTAN

IMRAn AlI khAn

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Customs Court seeks charge sheets against suspects involved in betel nuts smuggling KARACHI

M.b RAnA

www.customstoday.com he Customs Court directed investigation officer to arrest the financiers, abettors and submit charge sheet against those who are involved in a case of attempting to smuggle contraband betel nuts and others goods.

Investigation officer of Customs Collectorate Preventive Anti-Smuggling Organization produced another First Information Report (FIR) before the court and submitted that officials of Pakistan Rangers intercepted five Suzuki pick-ups near loaded with betel nuts and other goods at Maripure Road Karachi and informed the customs officials, therefore, customs officials reached there and search the pick-ups.

Investigation officer further informed that during the search of 5 pickups customs officials found 12 kg betel nuts, 72,6750 pouches Rajni Brand Indian origin Gutkha.

He said that after the formalities, customs authorities seized the above mentioned goods along with 5 pick-ups. He further submitted that show cause notices have been issued and display on customs office against owners of vehicles as well as owners of said goods, accordingly, efforts are in progress to arrest the absconding accused persons and their associates.

After the hearing court taken FIR into court record and directed investigation officer to arrest the culprits and submit charge sheet till next date of hearing. Case was registered for violation of under section 2 (s) 156 (2) 157 (2) and 178 of customs act, 1969 punishable under clause 8 & 89 of section 156 (1) ibid read with section (i) of Imports & Exports Control Act, 1950 and others related laws complainant

by Muhammad Shafiq Senior Preventive Officer Customs House Karachi.

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he Customs Collectorate formed special committee for redressal of grievances and settlement of disputes in the Collectorate.

Sources told Customs Today that Multan Customs has decided to purchase digital image scanners to Oight against illicit trade in the jurisdiction. The Customs Collectorate is going to install digital scanners at the Multan Dry Port, International Airport and other strategic locations to detect concealed objects in the jurisdiction. Collector Ambreen Tarar constituted a committee to redress the grievances and settlement of disputes under rule 48 of Public Procurement Rules 2004.

Scanners will be Oixed at certain checkpoints to detect what kind of goods entered and transported in the jurisdiction and they will assist in examination for procurement of import and export.

Multan Customs issued tender for the purchase of digital scanners and other equipment’s in this regard after approval of Federal Board of Revenue and called applications.

The Customs Collectorate has asked applicants of tender to submit their proposals with offered price for the purchase of digital scanners on 8th June in the conference room of Customs House.

The committee will supervise all the purchases required to be made through under 8th June 2018 by the purchase committee of Customs Collectorate Multan. If any grievance

has been lodged, it should be redressed before awarding the tender for the purchase of necessary equipment. The committee shall be comprised of Assistant Collector Dry Port Trust Muhammad Ikram and other members are Superintendent Anti-Smuggling Organization Habibur-Rehman and Superintendent Law branch Yousaf Baloch.

Meanwhile, Customs detected duties and tax evasion of Rs.7.350 million during audit against M/s Masood Textile Mills Ltd. Sources told Customs Today that M/s Masood Textile Mills Ltd was granted license for import of PC fabrics and 100% cotton yarn free from payment of duty and taxes under beneOit of SRO 450(i)/2001 for the consumption in manufacturing of

garments for exports.

According to Rule 350(4) of SRO the period of utilization input goods should not exceeded two years from the date of in-bonding of input goods. It was observed during the audit of record that M/s Masood Textile Mills Ltd was failed to consume the duty free imported input goods within prescribed time period against the goods declarations.

Resultantly, taxable duty and taxes of Rs.7.350 million on input duty free goods for unaccounted quantity of output goods are required to be recovered from M/s Masood Textile Mills Ltd. During audit it was also revealed that licensee was required to submit monthly statement but he was failed to comply with the aforesaid rule.

Committee for implementation of tax exemptions for FATA, PATA ISLAMABAD

MUhAMMAD ARShAD www.customstoday.com

he Senate Standing Committee on Finance and Revenue, recommended complete implementation of tax exemption facility for Federally Administrated Tribal Areas (FATA), Provincially Administrated Tribal Areas (PATA) and Malakand Division.

This facility has been guaranteed by the government in the FATA, PATA and Malakand region merger Bill / 25th Constitutional Amendment.

The Senate Finance and Revenue Committee met here with Farooq H Naek in the chair and expressed showed satisfaction over the explanation given by the Member Inland Revenue-Policy of Federal Board of Revenue Dr Muhammad Iqbal regarding taxing the pensioners.The committee had taken up the issue as public petition moved by Major (R) Ghulam Abbas.The Committee questioned Dr. Muhammad Iqbal about the circumstances under which pensioners were taxed; he revealed that under FBR rules pensioners are not taxed unless they possess taxable movable or immovable property; or if they accept other employment after retirement. He further stated that the petitioner was not included in the tax list. Chairman Committee disposed off the petition; issuing directions for the petitioner to be informed of the decision.

Whilediscussingmodalitiesofthe implementationofTaxReliefRegimes announcedbytheGovernmentaspromised duringthepassageofFATA,PATAand MalakandregionmergerBill/25thConstitutionalAmendment,themembersofthe Committeeassertedthatinordertofacilitate thiswarravagedregionitwasimperative thatthegovernmentkeptitscommitmentof givingtaxexemptionstocommercialenterprisesinFATA/PATAandMalakandDivision foraminimumoffiveyears.

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kP importers laud CJP for taking notice of misuse of green Channel facility I

PESHAWAR

IRfAn bAhADUR

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mporters based in Peshawar lauded Chief Justice Mian Saqib Nisar for taking notice against misuse of Green Channel facility through which various high value goods were being cleared by declaring as iron and steel scrap.

Owner of Muhammad Ali & Co, Chemical Importers & Exporters informed Customs Today that several importers including M/s Matsui Traders, M/s Diamond Metals, M/s G.M.B Steel Furnace, M/s Lahore Steel Mills, M/s Waqas Steel Fur-

nace, M/s M.S Enterprises, M/s Fast Synthetic, M/s Malik Steel ReRolling Mills and M/s A.H & Co were found involved in mis-declaration.

Assistant Manager Sales at Freight Systems Pakistan (Pvt) Ltd Akbar Khan said high-value and high-tariff goods were being cleared through Green Channel under the garb of low-value and lowtariff goods. Importers having objectionable record were given the status of green channel which is against true nature of securing trade policies. These importers as well as high-proOile importers including corporate sector importers have indulged in abusing the facil-

ity which needs to be checked and investigated. Importer further said that R&D section of MCC Port Qasim, Appraisement East had been assigned additional task of assessment, which is a full-time job. The R&D section is busy in assessment but did not focus on intelligence gathering, which opened up room for revenue evasion and corruption. Likewise other Customs Ports, the Peshawar Dry port which has been working as the biggest port of Khyber Pakhtunkhwa Province but irregularities have been detected here by the govt on which National Accountability Bureau (NAB) has

started investigation.

According to details, importers joining hands with customs ofOicers have cleared illegal consignments from Torkham Customs station to Afghanistan which has caused loss of billions to national exchequer.

The importers demanded of the customs high ups to take strict action against corrupt ofOicers as they not only defamed customs department but also caused precious loss to the exchequer. The import of illegal goods on the other hand has made monopoly in the market due to quick availability and low prices due to which genuine importers are suffering heavy losses.

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SPECIALREPORT

JuNE 26 - JuLy 02, 2018

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s per details, Customs Today extensively covered and reported since past few years the misuse of green channel facility and published repeatedly an appeal of senior investigative journalist Asad Kharal to the Chief Justice Mian Saqib Nisar and the NAB chairman Justice (r) Javed Iqbal to take notice of Rs 1000 billion green channel illegal clearances. The Chief Justice took notice of the complaint, as Asad Kharal appeared before the court and submitted the complaint regarding green channel smuggling, and ordered the concerned quarters including FBR Member Customs Zahid Khokhar, Chief Collector Abdul Rasheed Sheikh and DG Intelligence Shaukat Ali to submit reply within 10 days.

The court associate also sent the notice copy to the Chairman NAB for notice and necessary action.

Following is the complaint submitted to the Chief Justice and the NAB Chairman: As per application and accompanied appeal Oiled by Asad Kharal, Chairman Centre for Investigative Journalism (CIJ) Pakistan, a mega scam of green channel smuggling is unearthed at ports of Pakistan: • Customs Department admits that 46% of clearances happen in green channel where the smugglers are ensured that their goods would not be checked by customs ofOicers at ports.

• Green channel facility is provided exclu-

genuine importers once again appealed to CJP and Chairman nAb to take strict action against ‘corrupt mafia’ of Customs Dept and green channel smugglers for sake of national economy

— Exclusive Customs Today photo

sively to rich people who have big turnovers so that they can cause bigger revenue losses to the national exchequer and corrupt customs ofOicers can make even bigger money out of it.

• High value goods like mobiles, banned items and health hazardous goods like betel nuts, narcotics substances, cigarettes, liquor and explosives are cleared by a few corrupt customs staff without any checking or examination.

• Millions of Pakistanis are losing health and lives due to smuggling of banned items through green channel • More than Rs 1000 billion losses incurred due to the green channel mega scam but the customs authorities are not ready to take any action or correct its ways because senior customs ofOicers are huge beneOiciaries of the entire scam.

Coverage of green channel issue by Customs Today: It is important to mention here that Customs Today has been reporting on abuse of green channel since past many years and DG Intelligence report regarding misuse of green channel facility has conOirmed this fact. Customs Today also unearthed mega brands like Mobilink and QMobile which were reported to be grossly abusing Green Channel facility with connivance of Customs staff. Customs Today exposed mega smuggling scam of Digicom Company (Q-Mobile) as the company cleared more than 750 containers through green channel.

On 2nd February 2018, Customs Today exposed a smuggling bid of 15,520 liters of dual use precursor acetic anhydride worth around $1.5 million at Port Qasim. The acetic anhydride is a main ingredient for preparing narcotics substance as well as making highly dangerous explosives by the terrorist outOits. Then, Customs Today published several reports about betel nuts smuggling worth billions of rupees through ports at Port Qasim and Appraisement East Collectorate.

Customs Today reported on Feb 28 that an Additional Collector at Port Qasim, under a plan, used to keep entire staff busy with futile re-examinations and re-assessments of genuine importers so that his accomplices from the green channel smugglers get a good chance to smuggle goods without examination in green channel. This kind of practice gave rise to huge smuggling through green channel.

Chambers raise voices against green channel abuse: Customs Today extensively covered

the issue of m ity and invol ofOicials of Po East Collecto Different c ciations and t of green chan the FBR to ta Oicials. Islama and Industry Waheed has ofOicials are t because they loss in shap exchequer. H against such department.

While talk President Am faces leakage black sheep are collectin bribe and cle and unfortun more higher t the departme President ber of Comm Bilour while t Customs App has crossed efOiciency of c clearance of c ation of Ch Industry will smuggling is ties of custom Vice Presi Chambers o (FPCCI) Syeda ber of Multan Industry sai modify its c green channe in the country on Port Qasim a few custom unscrupulou they are allow smuggled go ting clearanc President merce and In Malik, has said importers are of their consi hurdles create Answering are going to m higher autho ofOicials.” He rupt ofOicials on the reputa Senior V Chamber of

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misuse of green channel facillvement of corrupt Customs ort Qasim and Appraisement rate. chambers of commerce, assotax bars also raised the issue nnel smuggling and compelled ake action against corrupt ofabad Chamber of Commerce (ICCI) President Shiekh Amir s said that these corrupt he real enemy of the country y are involved in causing huge pe of revenue to national He demanded serious action black sheep in the customs

king to Customs Today, ICCI mir further said, “Our country in the revenue collection, but in the customs department ng parallel revenue by such earance of contraband goods ately this parallel revenue are that our revenue collected by ent.”

Federation of Pakistan Chammerce and Industry Ghazanfer talking to Customs Today said praisement East R&D Section d every limit to hamper customs department through contraband goods and Federhamber of Commerce and take up mega green channel sue with the higher authorims department. ident Federation of Pakistan of Commerce & Industry a Masooma Sibtain and memn Chamber of Commerce and d Pakistan Customs should clearance procedure under el facility to prevent its misuse y after revealing recent scams m. It is very unfortunate that ms ofOicials are involved in s activities at Port Qasim and wing smugglers to throw their ods in the markets after gete through green channel. of Karachi Chamber of Comndustry (KCCI), Mufassir Atta d that it is true that majority of e facing difOiculties in clearance ignments due to unnecessary ed by corrupt customs ofOicials. g to a question, he said: “We make a complaint to customs orities about these corrupt further said due to such cora question has been marked ation of customs department. ice President, Rawalpindi f Commerce and Industry

JuNE 26 - JuLy 02, 2018

(RCCI) Mohammad Nasir Mirza while talking to Customs Today said Pakistan is facing revenue shortfall, while network of corrupt ofOicials is playing in the hands of smugglers, causing billions of rupees loss to the exchequer, and criminal silence of higher authorities of Customs department and FBR is suspicious. A timely and resultoriented action shall be taken to halt further loss to revenue and break the network of corrupt ofOicials.

Attack on Asad Kharal after green channel complaint: Soon after submission of a complaint against Rs 1000 billion green channel illegal clearances to the CJP and the NAB, Asad Kharal was attacked and assaulted in Lahore on 6th June and he remained under treatment at the Services Hospital and CMH. He received serious injuries to his neck, arm and other parts of the body. The senior journalist was on his way home from the airport when his vehicle was intercepted. He was taken out from the car and assaulted.

In his FIR, he had neither enmity with anybody nor it was an incident of robbery.

“They wanted to frighten me. They attacked me because I had sensitive information about corruption cases of Rs5001000 billion per case in my USB and phones. I wanted to present them to the Supreme Court and the NAB.” Notice of green channel smuggling by the Chief Justice: These reports led to multiple raids, tens of FIRs and recoveries of illegally cleared goods worth billions of rupees. In fact, in a single raid at a SITE area godown, 600,000 Kgs. of betel nuts worth Rs 1.5 billion were seized. Notwithstanding, these actions were only as token in nature and is a drop in the ocean whereas much more needs to be done. Customs Today also published investigative reports about changing of strategies by green channel smugglers as they started clearing illegal goods through yellow channel & TP. At last, Chief Justice Mian Saqib took notice of the issue and this step could help eradicate corruption mafia from the country especially in Customs Department as green channel smuggling is inflicting heavy losses on the national exchequer. The chief justice and the NAB chairman have also took suo moto notices of mega corruption cases in Pakistan and even Nawaz Sharif was disqualified as prime minister in a historic decision announced in the Panama Papers case.

Genuine importers once again appealed to the Chief Justice and Chairman NAB to take strict action against ‘corrupt maOia’ of Customs Dept and green channel smugglers for the sake of national economy.

SPECIALREPORT 07

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08 EDITORIAL

JuNE 26 - JuLy 02, 2018

Founder & Chairman Zulfiqar Ali 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

Investment in real estatesector

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he successive governments have been apparently fighting tooth to nail for the last few years to discourage investment in the real estate sector.

According to official circles, involvement of corrupt money in the real estate sector has not only provided a safe passage to the crook and dishonest elements to avoid the law but also disturbed the balance of property prices in the market. However, the policymakers always find a novel solution to any problem in this country which still has very poor ranking in the global corruption perception index. The real estate and construction sectors are the engine of growth for any economy in the world, but these sectors are snubbed to stop investment in it. As a result, people are now investing in offshore companies and real estate sectors of the united Arab Emirates and Britain.

Imposition of withholding tax on the banking transactions as well as the condition to reveal sources of income has added to the miseries of not only the property sector, but also the construction industry. As a result, the real estate sector has failed to use its potentials to promote investment, push industrial growth and generate employment.

At least 250 industries are directly or indirectly associated with the construction industry and anything disturbing the property business will adversely affect the whole economy.

However, with little knowledge and myopic vision, the government policymakers have always caused losses to the economy rather than bringing any good to it. At least 40,000 real estate dealers were working in branded housing societies across the country, most of which have now closed their offices or shifted their businesses. Many others have not only left the sector, but also the country. Industries, including cement, brick, aluminum and dozens of others are struggling to stay in the running mod. The real estate sector is the economy of Pakistan and the government should work out a plan to lower the tax ratio to create businessfriendly and investment-friendly environment in the country. The governments are in the habit of launching amnesty schemes, allowing the tax evaders and others to whiten their black money. Instead, policies should be introduced to attract investment and there would be no need to bring any amnesty scheme in this case.

Amnesty scheme F

LAHORE

CUSTOMS TODAY REPORT www.customstoday.com

ormer prime minister launched an amnesty scheme for the owners of the offshore companies.

The step shows how the government tried to stabilize Oinancial affairs and bring back the black money to Pakistan from abroad. The Ex-PM remained on the forefront to offer an amnesty scheme by persuading the well-to-do citizens to declare their assets in foreign countries. On another note, frequent changes in the rules and regulations have marred the shape of the whole taxation system.

The government had discussed the issue on several occasions, but failed to reduce tax rates which could lead to the broadening of the tax base. However, the policymakers have so far failed to address Oiscal challenges despite taking loans and grants from

every external and internal source.

The political government gave kneejerking response to the opposition parties which had launched a protest movement when budget for the Oinancial year 2018-19 was under process and the general elections are at hand.

When it comes to the preparation of laws and schemes, it appears no one will be able to indulge in corruption, but every legal code fails at the implementation stage.

Finally, former prime minister introduced another amnesty scheme to allow Pakistanis to declare their assets stashed in foreign banks. But there was a dire need to keep the house in order before launching such a venture. Recent reports suggest that under Amnesty Scheme announced by the last govt of PML-N, around Rs380 billion of black money is turned into white and at least Rs435 billion will also be legalized in near future.

The tax-to-GDP ratio is the lowest

Unless the government machinery is rid of the black sheep, no reform programme can change the system

in Pakistan as compared to other countries in the region, but tax rates are the highest than any other country. As a result, citizens are forced to pay tax on everything indirectly. There is a need to bring wealthy individuals into the tax net. Unless the government machinery is rid of the black sheep, no reform programme can change the system. There are no two opinions on the sincerity of the former prime minister with regard to the amnesty scheme, but the past government should also have prepared the ground to attract not only local but also foreign investment. Keeping the capital simply in banks is not a business, but wastage of time and money. According to Dr Ishrat Hussain, the former State Bank governor, Indonesia materialised up to $40 billion by offering its citizens an amnesty scheme, but Hussain should understand this is Pakistan where the government itself gets involved in violates the rules of law.

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NATIONAL 09

JuNE 26 - JuLy 02, 2018

Adjudication-I recovers Rs8.59m from M/s Mas Traders

KARACHI: Adjudication-I issued recovery and final notice to two defaulter companies and recovered Rs 8.59m from M/s Max Traders. Sources told Customs Today that defaulter company M/s Max Traders got cleared a consignment of electronics accessories including drill machines, parts of drill machines, LED TVs, picture tubes and other items on Feb 13, 2018 and evaded a tax amount of Rs8.59m. After the scrutiny, the Collector Customs Adjudication-I Shazia Qureshi served a show cause notice to the company on 27th April, but it failed to clear the outstanding tax.

ISLAMABAD

ShAhID MInhAS

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ederal Board of Revenue (FBR) has established new organization“Directorate General Input Output Coefficient Organization”(DG IOCO) which will look after evaluation of rates of duty drawbacks on exported goods, rates of input output of goods and rates of wastage of goods, meanwhile the organization will also keep close liaison with concerned ministries and departments.

Official sources told Customs Today that FBR issued notification of the newly operational organization Directorate General Input Output Coefficient Organization while also notified the job description, hierarchy of the organization.

Sources said that director general will lead the organization while directors, additional, deputy and assistant directors, audit officers, principle appraisers, appraisers, senior auditors, superintendents, deputy superintendents and inspectors will also be part of its hierarchy. Moreover, director general, directors, additional, deputy and assistant directors will have the power and authority under the section 155P, 208, 26, 155C, 155D, 155M, 155N, 155R, 155B, 91 and section 211 of Customs Act 1969. Sources also told that Directorate (headquarter) will be established in Karachi while Director IOCO North Islamabad, Director IOCO Central Lahore and Director IOCO South Karachi will work under the headquarter has operational new organization.

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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

Quetta Customs forms six new check posts to curb smuggling: ADC Zubair QuETTA

TARIQ DERYA

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ustoms Collectorate Additional Collector Zubair Shah said that the Collectorate is striving hard to achieve security of businesses by simplifying trade procedures.

During an exclusive interview with Customs Today, Zubair who is also looking after FTO matters, Preventive l, ll, lll sections, Recovery cell SWH said that the department was improving the situation by tackling integrity related issues and facilitating movement of goods across international borders, providing a safe environment like secure supply chain, protection of health and safety of people, prevention of terrorist Oinancing and smuggling of contraband goods and providing a safe environment which will lead to sustainable economic growth by eliminating any intellectual property rights violations, improving governance through combating smuggling and removing any innate risks through enhancing capacity of Customs personnel.

Shah said that the Collectorate has already embarked upon an ambitious roadmap for securing the business environment so that legitimate trade can reap the beneOits of trade facilitation while stringent measures are being initiated against violators of the law, whether inside the department or outside.

He said that the Collectorate has already built six new check-posts

— Exclusive Customs Today photo

FBR establishes Directorate General of IOCO

Additional Collector Zubair Shah

at Rakhni, Manikhwa, Yaro Karez, Nushki, Kholpur and Lakpas in addition to the existing ones at Nokundi, Dalbandin, Baleli and Mashkhel. Answering a question regarding activation of Customs House at Badini and Ghaznali, he said that plans to activate the Cus-

toms Houses at Badini and Ghaznali in the border areas are also at an advanced stage and would be operated soon with the help of local stakeholders.

He added that the land has also been acquired at Ziarat locality of district Pishin for establishment of

a Customs Station that would monitor the movement of goods passing through that location.

The additional collector said that Pakistan Customs has also built its own examination yard spreading over 50 acres of land at Taftan and the local revenue authorities have also been approached to allocate another 100 acres of land for establishing a terminal for safe parking of goods laden vehicles, adding that that this yard gains added importance in view of the imminent launch of International Road Transport system which would enhance movement of goods.

Earlier, Quetta Customs collector Ashraf Ali said CPEC is expected to greatly enhance the Olow of goods which would greatly beneOit from the secure business environment being established by Quetta Customs in order to efOiciently handle the Olow of cargo.

He added that the present challenges faced by customs administrations across the country required adequate acquaintance with and adoption of innovative technology.

The collector narrated, “I have always appreciated customs Quetta staff for making strenuous efforts in pursuing information connectivity with our stakeholders for a safe and secure trade.” He added that at the local front, collaboration with business and industry would enable all stakeholders to become innovative and competitive, adding that the department has to take up all challenges and play its role in balancing its traditional responsibility aimed at effective enforcement and greater trade facilitation.

Appeal to withdraw hike in petroleum products prices To,

Barrister Syed Ali Zafar, Caretaker Minister for Energy, Islamabad Dear Sir,

I want to draw your kind attention to the recently increase in petroleum prices. Present caretaker government should withdraw its decision of making further hike in the prices of petroleum products as it would enhance the cost of production, increase inOlation for the general public, affect exports and hit the growth of the economy.

Sir government has increased the price of petrol by Rs.4.26 per liter, High Speed Diesel by Rs.6.55 per liter and kerosene by Rs.4.46 per liter at a time when the business community was already facing

many challenges in promoting business activities.

Sir, Pakistan was producing major chunk of electricity through oil fuel which has led to the high cost of production making our exports uncompetitive in the international market. Our exports have recently witnessed a turn around, but the recent hike in the price of petroleum products would make our exportable products more uncompetitive in international market leading to further slump in exports.

Recent increase in the price of diesel would further enhance transportation cost that would affect the growth of business activities and give rise to inOlation for the general public. Hike in POL prices would also affect agriculture sector as most of the tube wells were run on diesel and the cost of bringing the products from farms to markets would

further go up.

Government has imposed many taxes on POL products which ware not justiOied. Government was receiving 27.5 percent GST on HSD and 17 percent GST on other POL products. In addition to that, it was charging Rs.8 per liter on HSD as petroleum levy and Rs.10 per liter on petrol. Instead of making any increase in POL prices, government should reduce heavy taxes and levies on these products that would bring down the high cost of doing business, facilitate growth of business activities and exports, reduce inOlation and yield multiple beneOits for the economy.

Best Regards

Muhammad Naveed Malik, Acting President ICCI, Islamabad

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10 NATIONAL

JuNE 26 - JuLy 02, 2018

faisalabad I&I impounds non-duty paid honda City

FAISALABAD: The Customs Intelligence and Investigation seized a non- duty paid Honda City car worth Rs 2.5 million involving duty and taxes to the tune of Rs 1.5 million during road checking here. Sources told Customs Today that the customs officials received secret information that a non-customs paid Honda City car bearing registration number LRL 2545 is plying on roads in Faisalabad city. Soon after receiving the information, a customs team started examining documents of vehicles.

nAb asked to probe customs staff noor, othersofISAf/ATTinasimilarTPmegascam KARACHI

CUSTOMS TODAY REPORT www.customstoday.com

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he accused Customs ofOicials who were acquitted by the court in ISAF/NATO containers mega scam are alleged to be still indulged in same practice of clearing the containers through TP, opening up seals of those containers enroute to Lahore or other ports of the country and replacing the smuggled goods with other items. These accused were acquitted as customs prosecution willfully weakened the case by not producing evidence/witnesses against the accused before the court. Genuine importers have asked the NAB to launch investigation against Customs staff including Noor Akbar Mahar, accused in the ISAF/NATO missing containers case, in a similar TP mega smuggling scam.

According to details, the court announced judgment of case no 72/2011 against suspects namely Noor Akbar Mahar, son of Ghulam Akbar Khan; Syed Arshad Ali, son of Syed Shamshad Ali; Mehfooz Ali Khan, son of Masood Ali Khan; Sardar Amin Farooqui, son of Jalil Ahmed; Munir Ahmed Brohi, son of Hassan Khan; A. Aziz Umrani, son of Muhammad Mithal; Muhammad Abbas Khan, son of Noor Ahmed Khan; Fareh Shoukat, son of Shaukat Ahmed; Shoukat Hussain, son of Muhammad Hussain; Muhammad Yasin, son of Gulab Khan; Shahid Rauf, son of Muhammad Yaseen Khan; Saeed Babar, son of Faqee Muhammad and Muhammad Irfan, son of

HaOiz Abdul Majeed.

According to the verdict, during the investigation of the ISAF/NATO containers scam conducted by the probe committee of FBR, pursuant to the directions of the Supreme Court, initial investigations were conducted which transpired that Afghan Transit Trade consignments were got cleared by clearing agents as per notiOied procedure, the consignments were cleared from MCC Appraisement. During the investigation, it revealed that all consignments were Oirst cleared in the garb of Afghan Transit Trade and then were smuggled and disposed of inside Pakistan, causing colossal loss of revenue to the state exchequer, it added.

The court further observed that “from evidence brought on record it is clear that complainant had no personal knowledge about commission of the offense by the accused persons nominated in this case and he simply signed the draft copy of FIR received from probe committee FBR, ofOice and lodged the

FIR on the instruction of the probe committee, the evidence of complainant is of totally no use for the prosecution as the witness has himself no knowledge of the crime allegedly committed by the accused persons.”

It is signiOicant to note that only NLC was responsible to transport the consignments to Afghanistan but from the record it appears that they failed to perform their duty and no investigation was conducted from the NLC ofOicials who were responsible for transportation of the consignments to Afghanistan.

Even the drivers of the vehicles engaged in transportation who played key role in the alleged crime were not nominated as an accused in this case either by the probe committee or by the complainant, investigation ofOicer even failed to collect the import documents particularly GD which could show the consignments was imported by Afghan Importers, in absence of the GD the charge cannot be proved against any of the accused who are customs ofOi-

cials/staff and clearing agents, there is absolutely no evidence against the accused persons present in court, therefore, prosecution miserably failed to prove its case against them”.

In view of these Oindings and after evaluation of the summary evidence adduced by the prosecution, the court concluded it had been established beyond any reasonable doubt that the prosecution had miserably failed to prove its case against the accused, who were accordingly acquitted of the charge.

It is pertinent to mention here that the then Chief Justice Iftikhar Muhammad Chaudhry had taken up the case relating to import of contraband items under the garb of food supplies meant for the International Security Assistance Force (Isaf) in Afghanistan and ordered the FBR chairman and the Federal Tax Ombudsman to submit comprehensive reports on the steps taken to implement recommendations made earlier by the FTO. In his report on Jan 19, 2011, Dr ShoaibSuddle,thethenFTO,hadput the recoverable amount at Rs54.73

billion accumulated over the past four years owing to pilferage of containers that entered the country in the garb of Afghan Transit Trade (ATT). The FTO had also recommended in his report to give exemplary punishments to the accused customs ofOicials. Now all those accused customs ofOicials including Noor Akbar Mahar are acquitted by the court and they are still providing a helping hand to the smugglers of banned items. These ofOicials are clearing those containers through TP and replacing the smuggled goods enroute to other cities.

Customs Today has received a video in which it can clearly be seen that a person was opening up the seal of a container which was cleared through TP from Karachi ports and meant to be delivered to other cities. Then the same person skillfully re-sealed the container using the same seal that was removed by him. This tactic was only being used in Pakistan as there was no chance of re-using the same seal in other countries. This also shows that this is not a single case of TP smuggling but it is a pre-planned tactic being used by smugglers in connivance with customs staff.

Customs Today extensively raised the issues of misuse of green channel, yellow channel and TP facilities and Chief Justice Mian Saqib Nisar recently took notice of green channel smuggling and ordered the relevant authorities to submit reply within 10 days.

Genuine importers who are suffering huge losses at hands of these corrupt ofOicials including Noor Akbar Mahar appealed to the Supreme Court and the NAB to take prompt action against these culprits of ATT mega scam who are still ‘involved’ in smuggling of banned items through green channel and TP.

“CJP notice against green channel smuggling highly appreciated” MuLTAN

M

IMRAn AlI khAn

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isuse of the green channel facility is posing a professional challenge to whole customs department and Chief Justice of Pakistan Justice Mian Saqib Nisar notice in this regard is highly appreciated.

It was told by President of Pakistan Chemist & Druggists Association (PCDA), Punjab Muhammad Akhtar Butt in his exclusive interview with Customs Today.

He said that Chief Justice of Pakistan Saqib Nisar took notice after the shocking facts revealed

by Customs Today against mega corruption and revenue evasion through green channel and ordered an inquiry into the matter.

He told that Supreme Court has put a full stop on people using the Green Channel to bring in goods without paying duty. He said that Green Channel facility has been mercilessly misused by fraudsters in connivance with a few corrupt customs ofOicials who cleared unscrupulous items for the sake of personal bribes.

He said that misuse of Green Channel facility by smugglers has caused huge loss to the national exchequer and genuine importers in the country. Misuse of Green

Channel facility allowed smugglers in the country to launch their smuggled goods in the open markets after getting clearance through green channel.

He informed that smugglers used Green Channel for clearance of illegal drugs. He showed grave concerns over illegal import of banned drugs in the country which are also causing severe health issues in public and it is the most serious offence and Supreme Court of Pakistan should conduct investigation against it.

He worried over clearing these illegal or banned goods by declaring as scrap or iron under the protection of customs due to involve-

ment of some corrupt ofOicials, legitimate imports are decreasing day by day due to encouragement of illegal imports in the country as genuine importers after paying huge taxes could not compete in the market. Genuine importers pay all taxes and levies for the clearance of their shipments but smugglers smoothly get cleared their goods by mis-declaration under the garb of iron and scrap. This is causing billions of rupees loss to national exchequer as revenue through legal imports is decreasing and corruption is increasing day by day due to greedy customs ofOicials who are offering swift clearance to fraudsters.

He said we are losing competition in the retail markets ultimately as fraudsters are supplying goods less than their cost by evading necessary taxes while genuine importers are unable to sell medicines on same prices after paying regular taxes.

Customs department must introduce effective checking of shipments clearance through green channel or others to address concerns of business community and genuine importers.

He suggested that clearance procedure through Green Channel should be reviewed to stamp out illegal clearances in future at Karachi Port Trust (KPT).

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CARTOONSSPECIAL 11

JuNE 26 - JuLy 02, 2018

Customs Export retrieves Rs9.12m from two defaulter companies

KARACHI: The Customs Export recovered evaded amount of taxes and duties of Rs 9.12 million from defaulter companies which were issued with notices to pay the outstanding dues. Sources told Customs Today that, during scrutiny of the import data, it was revealed that M/s Kamil Associates availed undue benefits and concessions by importing blankets, bed sheets and pillow covers by misusing the SRO 559. The consignment was cleared through Examiner Rashid Zekria on February 16, 2018.

Customs Court grants bail to suspect booked in 4500 litershSD smuggling case KARACHI

M.b RAnA

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he Customs Court granted bail to suspect namely Abdul Hussain son of Abdul Sattar against the surety of Rs50,000, who is booked in a case of attempting to smuggle nonduty paid 4500 liters High Speed Diesel (HSD).

Counsel for the suspect Oiled bail petition and argued that accused is Oisherman by profession and sue to earn livelihood by Oishing through boating in the deep sea. He further argued that the recovered 4500 liters of HSD was meant for the fuel required for the boat as the crew members spend two months in the deep sea. He argued that accused was not found bringing in or taking out of Pakistan the goods in question therefore, alleged offence is punishable with six years imprisonment and as such does not fall within the prohibitory clause of section 497 cr pc hence accused are entitled to grant of bail.

Ghulam Mustafa, Special Pros-

ecutor for the state vehemently opposed the contention raised by the counsel for the accused and has contended that the applicant is intercepted along with boat loaded with 4500 liters of Iranian

smuggled HSD, therefore, bail application may be rejected. After the hearing, court observed in its order that “it could be established at trail that whether the recovered HSD was meant for fuel con-

sumption or smuggling purposes and even it is also matter for further inquiry that whether the recovered HSD of Iranian origin or otherwise, therefore, the bail petition is allowed to the above

PCA detects tax evasion of Rs14.58m

by M/s Shamim Garments & Export

mentioned suspect against the surety of Rs50,000. According to the prosecution, case was registered by Pakistan Coast Guards Karachi under Customs Act, 1969 and others related laws.

Customs confiscates 500 bottles of alcohol during Eid holidays LAHORE

M IMRAn MEhAR www.customstoday.com

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KARACHI

wAQAR AhMED AnSARI www.customstoday.com

he Directorate of Customs Post Clearance Audit (PCA) detected duties and tax evasion of Rs 14.58 million by M/s Shamim Garments & Export, Malir Karachi and forwarded the report to concerned adjudication, it is learnt here.

Sources told Customs Today that M/s Shamim Garments & Export imported a consignment of fabrics dying machines, dryer, and sewing machines,(German origin) got it cleared from the QICT Karachi vide GDs 2748 on January 27, 2018 by paying customs duty low at 8 percent after claiming the benefit of the SRO 569/2007.

However, the subject items were

correctly classifiable under the PCT 5847.2507 attracting customs duty at 12 percent and income tax at 10 percent, thus, by way of mis-declaration of classification, the company evaded/short-paid Rs 14.58 million. The goods were cleared by Appraiser Sultan Mehmood. Sources told that the importer violated the provisions of Section 74 (2-A) of the Customs Act-1969.

he Customs team deputed at Allama Iqbal International Airport confiscated as many as 500 alcohol bottles and large number of mobile phones from passengers travelling via different flights during four days of Eid holidays at Allama Iqbal International Airport. Sources told Customs Today that the customs team conducted operations in different flights coming from different countries.

Most of the passengers were travelling to Lahore from America, Australia, England and other European countries. Operations were conducted in flights coming from London to Lahore, Turkey to Lahore, New york to Lahore and Sydney to Lahore. Customs took action in Pakistan International Airlines (PIA), Turkish Airways and Gulf Air flights. During actions in these flights, customs staff recovered 500 bottles of alcohol. Mobile phones were also confiscated from different passengers while Customs allowed all passengers to go after confiscation of alcohol bottles from their possession.

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Sargodha fIU impounds non duty paid Mazda truck

SARGODHA: The Field Investigation Unit (FIU) of the Customs Intelligence and Investigation impounded a non-duty paid Mazda truck bearing registration no LSB-8274 model 1989 worth Rs5.5 million involving customs duty and taxes to the tune of Rs2.5 million. Sources told to Customs Today that Deputy Director Rana Irfan Shouqat received information about some non-customs paid vehicles are plying on the roads. He constituted a team comprising Superintendent Muhammad Tahir iqbal Intelligence Officer Saad Iqbal and Sepoys Muhammad Ashraf, Asad Iqbal Khalil Ahmed.

After CJP’s notice of green channel smuggling,

FBR to install 100% scanning project on all customs clearing stations ISLAMABAD

ShAhID MInhAS

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ederal Board of Revenue (FBR) is preparing the Oirst draft of 100% scanning project for imported goods specially from India, Afghanistan and Iran.

Each and every container will be scanned under this project, it is learnt here.

Sources told Customs Today that special scanners will be installed on all border crossings, seaports and customs clearing stations.

Sources told that around 250 million Euros will be spent on this project, however, the project is being delayed till formation of new government. Meanwhile the PC-1 is being drafted and needed to be approved from the prime minister.

Sources added that FBR will present the draft to prime minister thereafter the Pilot Project will be implemented. Sources further added that with the help of this project, the issues of mis-declaration of goods, the malfunctioning in Afghan Transit Trade and violation and misuse of Green Channel can be resolved.

Moreover, 40% of imported goods are cleared on Green and Yellow Channel, however, the misuse of these channels are recently unearthed by Customs Today which caused a serious threat to national security and exchequer. Customs Today extensively covered misuse of green channel smuggling which inOlicted a loss of Rs 1000 billion on the national exchequer.

— Exclusive Customs Today photo

Meanwhile, In a bid to secure the robust revenue collection target for the Oiscal year 2018-19, the Federal Board of Revenue (FBR) is going to recruit almost 3000 to 4000 human resource from grade 1 to 16.

Presently, the FBR and sub departments face huge human resource shortfall; one person is assisting almost three ofOicers as supporting staff and this state of af-

Chairman fbR Tariq Pasha

fairs hinders the departments from showcasing glowing performance regarding revenue collection.

In April this year, the Election Commission of Pakistan had imposed ban on the recruitment of new staff by various departments of the government which now has been lifted. Sources at FBR told Customs Today that serious considerations for starting the recruitment

process were underway at different quarters. In this regard, wings and departments including Customs, Inland Revenue and others have been given full liberty to initiate and complete the process in a fair and transparent manner.

“The preliminary phases of recruitment process like inviting applications from the candidates, their eligibility tests and others have al-

ready been completed last year. In this regard, a third party was hired to evaluate the capacity of the candidates in a bid to ensure transparency and rule of merit; even candidates for the slots of drivers were also given tests through Motorway Police. The Oindings of the tests were also shared with the concerned authorities” the source maintained.

The source said that concerned authorities were concerned over the possible impression of making recruitments on the recommendations of the previous government; therefore, they were making full efforts to ensure transparency in the recruitment of the staff and ofOicers. In this regard, the source said that senior ofOicers were willing to ensure fairness in the recruitments to dispel the above mentioned impression.

The source further said that the government should support the FBR in this process and all the state organs like ECP and Supreme Court should think a lot before imposing any ban on the recruitments by other state departments because lack of human resource badly affect the performance of those wings or departments.

Meanwhile, Chairman Federal Board of Revenue (FBR) Tariq Mahmood Pasha visited Islamabad Chamber of Commerce & Industry and urged upon the business community to take full advantage of tax amnesty scheme as it was a last chance to legalize undeclared assets. He said that the amnesty scheme was focused on business community as public ofOice holders and their dependents were kept out of it, therefore, they should take maximum beneOit from it.

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LAHORE

SAJID nAwAZ

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ollectorate of Customs Appraisement Nasir Jameel impounded fourteen vehicles which were imported from Japan at Mughalpura Dry port.

Sources told Customs Today that all 14 vehicles were impounded after Counsel General of Japan Yukio MATSUMOTO” conOirmed that the above said vehicles were imported from Japan are stolen vehicles.

The Counsel-General also suggested Pakistan Customs to contact National Police Agency of

Japan through Interpol for further action against the importer of stolen vehicles.

It is necessary to mention here that Customs Today got the copy of reply of the letter which was written

by Deputy Collector Sobia Kiran CFS, Lahore to Japanese Counsel General.

According to the details, 14 Land Cruisers were imported from Japan which reached Karachi and after that transported to Mughalpur Dry Port Lahore.

During the inspection of vehicles at dry port, customs ofOicials observed that the vehicle’s driver side gates are broken. The same staff observed that there are some imbugi-

— Exclusive Customs Today photo

Jamil nasir’s Customs Appraisement impounds 14 luxury vehicles imported from Japan

ties in the import of the vehicles.

Deputy Collector Sobia Kiran approached Japanese consulate for the

clariOication of same vehicles. Customs Appraisement got reply that same vehicles are stolen and action

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).

should be taken through Interpol. After getting the reply from Japan Consulate, Customs department impounded the stolen vehicles. During the investigations, source told Customs Today that during the inspection of same case, Principle Appraiser Moazzam Virk was transferred and Appraiser Shah Jahan Dogar resigned from job due to pressure.

Customs Today when contacted with Principle Appraiser Moazzam Virk, who is directly involved in the case, he told that after getting reply from Japan Consulate, Customs department impounded vehicles in spite of immense pressure exerted by a PML-N politician.