Vol 1 Issue No. 30 Regd. No, mC-1381weekly karachi, Tue Sept 10 - mon Sept 16, 2013 PriceRs. 50.00

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pAkISTAN’S FIRST INDepTh NewSpApeR oN CuSTomS

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he key role of the AdministrationWing of FBR is overall administra-tion of the Board, its attached de-partments and field formations, in-cluding transfers and postings,appraisals, processing and moni-toring of all development projects.The entire budget of FBR is alsomanaged and supervised by thewing.This was stated by Shahid Hus-sain Jatoi, Member Administrationin Federal Board of Revenue in anexclusive interview with CustomsToday recently. He said that likeany other organization FBR has aneffective Administration Wingwhich is performing its duties withgreat responsibility. He said thatthe Administration Wing haslaunched another effective systemnamely HRIS, the first of its kind byany organization in Pakistan. Com-plete data and record of all the offi-cers and their performance isstored and maintained through thissystem. This method provides allthe required information of eachofficer with a single click.He said that Admin Wing re-mains watchful to ensure thattransfers and postings are de-cided on merit and sees that noambiguity is left in this regard.Admin Wing makes transfersand postings up to 19 gradeofficers and the rest aremade by the Central Selec-tion Board. Answering aquestion he said it is true

that the wing has to face pres-sures from different circles, in-cluding politicians, regardingtransfers and postings but underthe supervision of Tariq Bajwa,Chairman FBR, all the work is car-ried out absolutely on merit. Un-der the new set-up, the Adminis-tration wing is working in acongenial atmosphere and exer-cising its free will in the selectionof officers at important places. Re-plying to a question, heSee page 02

In order to meet tax targets,revenue officials will have toimprove their performance anddemonstrate theiradministrative abilities, saysIshaq Dar| See pAge 6 |

In order to broaden the tax base,Bajwa issued directives to theofficials to expedite the revenuecollection and cover theKnancial losses.| See pAge 7 |

Tariq Bajwa dissatisFed

| See pAge 11 |

Member Customs emphasizedupon integrity, performance andrevenue generation of CustomsDepartment.| See pAge 07 |

Dar eyes revenue target

ISLAMABADFAIZA ISRARwww.customstoday.com

Nisar stresses performance

Cartoons Special

02 NATIONAL www.customstoday.comSEPTEMBER 10 - SEPTEMBER 16, 2013

Dubai Customs foils smuggling attempt of 2.7kg of marijuanaDubai Customs inspectors at theCargoVillage seized 2.7kg ofmarijuana in a parcel crossing throughDubaiin transit between two Asian countries. Saeed Ahmed El Tayer, Director of the Department of Air CustomsCentres in Dubai Customs, disclosed that the parcel sender attempted to hide the narcotic drug betweenclothing items (trousers anda jacket).When theparcelwaspassing through the x-ray device, it reflected ab-normal density in this particular parcel.

said that infrastructure mainte-nance of FBR buildings, on rent orowned, is also a basic function ofour department.” We deal withmaintenance and construction ofbuildings, offices and even resi-dences of officers.” Similarly, otherassignments like holding trainingsessions for officers, supervisingtheir promotions, helping in careerplanning, managing their leaves,taking disciplinary actions againstthem and above all hiring and firingof officers are all in the line of dutyof the Administration wingIn addition, the department alsodeals with seniority cases, qualifi-cation issues, performance and eval-uation reports and overall profes-sional reputation. In other words,career profile mechanism is the re-sponsibility of the department.Replying to another question, MrJatoi said that if complaints againstFBR officers are anonymous and ofgeneral nature and allegations donot contain any evidence, then therewould hardly any justification fortaking action. However, complaintswith specific details and evidencesare first verified through variousmeans and then a preliminary re-port is prepared to initiate discipli-nary action against the officers.Apart from Admin Wing, he saidotherwings in FBR and governmentagencies simultaneously deal withthe investigation of complaintsabout corruption and corrupt prac-tices.He added that the culture of filinggenuine complaints does not exist inour country due to various reasonslike fear of retribution, lack of trust

and faith in the system and lack ofknowledge of the legal rights oftraders under various laws.He said that there is a propermechanism established for com-plaints which is simple and quick innature. “If we find any complaint inwriting and there is nobody to ownthe complaint, we cannotwork on it.We can only act upon specific de-tails and material evidence. Oncewe find out any evidence, we initiateproceedings in this regard.”�

From page 01

The lynchpin thatholds the systemtogether andkeeps it going

The wing has to face pressurefrom different circlesregarding transfers andpostings but under thechairmanship of Tariq Bajwaall the work is absolutelydone on merit

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03www.customstoday.comSEPTEMBER 10 - SEPTEMBER 16, 2013 ADVERTISEMENT

Tensof thousands ofwork-ers associated with ship-breaking industry canlose their jobs due to new taxes im-posed on the industry.“The ship-breaking is one of themain industries of Balochistan help-ing it grow economically,” the ex-perts said. They feared that the in-dustry could soon be closedpermanently owing to Federal Ex-cise Duty (FED). They explained thatthe ship-breaking industry was notonly providing better quality steel atcheap rates to the nation but alsogenerating jobs for the poor of theprovince.The industry was contributingRs7 billion annually to the nationalexchequer on account of taxes andits closure, which it also enduredduring 2002-2007, would harm thecountry’s economy, they added.

Pakistan Ship Breakers Associa-tion (PSBA) Chairman DewanRizwan Farooqui has revealed thatthe ship-breaking industry has notonly generated thousands of newjobs in the terror-hit province, but itis also providing quality steel at lowrates to the people.He described that in 2006, theexchange rate was Rs65 per dollarand the price of steel bar was Rs80,000, but currently the dollar isabove Rs 100 and the steel bar –made by ship plates- is just of Rs70,000.The PSBA chairman also sug-gested one per cent withholding tax(WHT) on smelters and ship-break-ers instead of any FED. He explainedthat the federal government couldgenerate revenue of Rs3.6 billion asthe industry would pay this pro-posed tax at import stage andsmelters have to pay on their con-sumed electricity units.Dewan said that the federal gov-ernment had imposed 5.5pc incometax on the ship-breaking industryand 1pc on melting industry as theship breakers were already paying

income tax five times higher thansmelters, adding that the smeltershad also some additional benefitsas their income tax is adjustable andthey are taking refund by payingonly half per cent turnover tax. Heasked FBR to give some relief to theship beakers and reduce the salestax on ship-breaking industry toRs3,200 per ton.�

NATIONAL04

Bangladesh Customs holds Fonterra milk products over scareDHAKA: Bangladesh authorities have restricted imports of powdered milk mostly from New Zealand dairygiant Fonterra followinga contamination scare that has seenglobal recalls, officials said. Customsofficials areholding more than 600 tons of milk mostly from Fonterra until mandatory chemical tests showed they weresafe, a seniorofficial inChittagong said. “Sampleshavebeensent for chemical tests,wewill release themwhenreports confirm they are not containing any harmful bacteria,” joint secretary of customs office, Hasan, said.

www.customstoday.comSEPTEMBER 10 - SEPTEMBER 16, 2013

The Model Customs Collec-torate (MCC) Port Qasim hasissued over 1100 Order-in-Original (ONO) against importers,customs agents, national carrier(National Logistics Carrier) andborder agents in Afghan TransitTrade (ATT) scam.According to details, ATT scamwas unearthed in year 2007, ex-posing the fact that around 28000containers destined to Afghanistanwent missing.The Supreme Court while tak-ing suo moto notice in ATT scamdirected the Customs Departmentto carry out investigation into thematter and submit its findings.The Customs Department in itsinvestigations held clearing agentsresponsible for the scam and alsorequested the SC to issue show-cause notices to companies ac-cused in ATT scam.Later, the Karachi CustomsAgents Association (KCAA) filed areply in the apex court against theshow cause notices and requested

that an impartial investigation byNational Accountability Bureau(NAB) should be conducted in thisregard.In the application, the KCAAsaid that clearing/forwardingagents as per Public Orders16/2000 and 5/2003 of the Cus-toms Act are only responsible forgoods until these are not handedover to the national carrier. Andthen the national carrier and bor-der agents are responsible for de-livery of goods.Under the provisions of Section209 of the Customs Act, 1969, cus-toms clearing agents are deemedto be the Principal (the Importer)in respect of the goods for whichthey are appointed as agent. Par-ticularly, in case of transit cargo itis the customs agent/border agentwho represents the importer inPakistan and deals with the clear-ance of cargo until its final desti-nation.It is pertinent to mention thatFBR during last SC hearing in Juneissued 10,075 hearing memos tocustoms clearing agents in miss-ing containers scandal and similarapproach had again been adoptedas the Model Customs Collectorate

(MCC), Port Qasim had chargedclearing agents, border agents andM/s NLC in missing containersscandal through three Order-in-Originals -- 21, 22 and 26.The sources said these orderswere issued against three compa-nies - M/s Haji Mamoor Ltd,Afghanistan, Ittefaq LtdAfghanistan and Olyx ConstructionCompany. The MCC, Port Qasimhad charged rest of the companiesin these orders by saying that"these orders shall apply to the fol-lowing companies as mutatis mu-tandis having same facts and cir-cumstances."Accordingly, the hearing oppor-tunities were provided to the re-spondents but no one appeared todefend the case.It is pertinent to mention herethat the MCC Port Qasim presentedits view point in ATT scam on June6, 2013 and issued more than1100 ONO on September 4, 2013.Senior Vice President All Pak-istan Customs Agents Alliance (AP-CAA) Arshad Jamal while com-menting over the situation saidthat MCC Port Qasim stance wasmore in favour of Customs offi-cials. �

Anti-smuggling scoutnumber 1 seized mis-cellaneous goodsworth Rs 3.5 million.Customs Anti-smugglingscout number 1 on a tip-offraided a truck full of varioussmuggled items includingAluminum Foil Paper 680kgs, 2200 boxes of Indianbangles, auto parts and mis-cellaneous goods worth Rs3.5 millions.Official sources said thescout raided the truck atFaizpur Interchange andseized it after getting suffi-cient evidences.The scout, consistingeleven constables and threeinspectors following thor-ough examination confis-cated the vehicle under Cus-toms Act and registered acase against the culprits. �

Model Customs Collec-torate’s Anti Smug-gling Organisation(ASO), Quetta has seizedsmuggled goods worthRs20 million.Led by Assistant Collec-tor Preventive AmanullahTareen, the anti-smugglingsquads conducted threesuccessful raids andthwarted bids to smuggle28,000kgs of plastic gran-ule of Iranian origin andseized over 15,000 litres ofsmuggled Iranian highspeed diesel (HSD) andmassive quantity of AfghanTransit goods includingghee, tyres and other Iran-ian food items.Sources revealed thatthe market value of theseized smuggled goods wasRs20 million. They said thatthe customs authorities, de-spite poor law and ordersituation, seized thelargest-ever haul of plasticgranules in Balochistan andthe department was com-mitted to carry out moreanti-smuggling raids in fu-ture.Amanullah Tareen saidthat special squads werealso deployed at all check-posts in the main areas ofDera Allahyar in JafferabadDistrict and Rakhni in Dis-trict Barkaan. �

ASO seizessmuggled goodsworth Rs20mKARACHICuSTomS ToDAY RepoRTwww.customstoday.com

Smuggled goodsworth Rs 3.5m seized

LAHORECuSTomS ToDAY RepoRTwww.customstoday.com

KARACHICuSTomS ToDAY RepoRTwww.customstoday.com

New taxes candestroy shipbreaking industryKARACHICuSTomS ToDAY RepoRTwww.customstoday.com

The industry was contributingRs7b annually to the nationalexchequer on account of taxesand its closure would harmthe country’s economy

kCAA Fled a reply in theapex court against theshow cause notices andrequested that animpartial investigationby NAB should beconducted in ATT scam.

MCC Port Qasim issues 1100 ONO in ATT scam

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06 www.customstoday.comSEPTEMBER 10 - SEPTEMBER 16, 2013SPECIALREPORT

Govtcommittedtoincreasetax-to-GDPratiothroughreforms:Dar

inance Minister Ishaq Dar saidthat the government is commit-ted to transparency and account-ability of each rupee collected astaxes and its utilization for thewelfare, progress and prosperityof the nation.This he said while addressingSenior Officers of Federal Boardof Revenue of South Region in-cluding Chief Commissioners,Commissioners of Inland Re-source Service and Chief Collec-tors and Collectors at CustomsHouse Karachi.Senator Ishaq Darsaid that the importance and roleof tax administration for nationaleconomy cannot be over-empha-

sized. The government, the Fi-nance Minister said, is deter-mined to increase the tax-to-GDPratio through reforms in the tax-ation system as well as FBR.The FinanceMinister said thatwe need to mobilize our re-sources to improve our infra-structure and launch projects ofnational importance for the eco-nomic progress of the country aswell as a better future for ourcoming generation.Dilating on the measurestaken by the government to in-crease tax collection, the FinanceMinister said the government hasimposed withholding tax on re-tailers and distributors, mini-mum tax on builders and devel-opers and is focusing on sectorsthat are out of the tax net, be-sides giving access to banking in-

formation of rich non-filers forbringing them in the tax net.The FinanceMinister said thatrevenue officials will have to im-prove their performance anddemonstrate their administrativeand professional abilities to en-sure that the revenue target ofRs.2475 billion set by the gov-ernment is achieved through bet-ter governance and plugging ofleakages.The FinanceMinister said thattaxation reforms introduced bythe government include encour-aging corporatization of econ-omy -- for which several incen-tives like low rates for thecorporate sector were includedin the budget – increasing de-pendence on direct taxes, reduc-ing tax-evasion by facilitatingtax-payers’ compliance through

ISLAMABADSm hAIDeRwww.customstoday.com

The measures taken bythe government havestarted bearing fruits. InJuly 2013, exportsshowed an increase of9.28% and currentaccount surplus reached

against a deKcit of

last year

The objective of the tax policy is to devise a system to ensure that the taxes are collected from each personaccording to his or her capacity. The citizens must be convinced that the taxes are collected fairly andequitably and the taxes collected will be properly utilized

F$46 million

$426 million

07SPECIALREPORTwww.customstoday.comSEPTEMBER 10 - SEPTEMBER 16, 2013

simplification of tax procedures,simplifying the administration oftaxes and compliance particu-larly for small businesses, broad-ening the tax base, eliminatingthe money laundering & whiten-ing of black money, improvingthe process of self-assessment &audit compliance and helping theprovincial governments to in-crease their tax revenues by ac-cepting agricultural income onlyif provincial agricultural incometax has been paid. The FinanceMinister said that the objectiveof the tax policy is to devise a sys-tem to ensure that the taxes arecollected from each person ac-cording to his or her capacity.The citizens must be convincedthat the taxes are collected fairlyand equitably and the taxes col-lected will be properly utilized,

he added.The FinanceMinister said thatthose who pay taxes should befacilitated and extended due re-spect so that their contributionis recognized. He expressed theconfidence that the taxpayerwould be facilitated and coun-seled to enable him to file decla-rations.The FinanceMinister said thatthe measures taken by the gov-ernment have started bearingfruits. In July 2013, exportsshowed an increase of 9.28%,current account surplus reached46 million dollars against adeficit of $426million in the cor-responding period last year andrecord tax collection of Rs.134billion & all-time high remit-tances to the tune of $1.4 billionwere alsowitnessed. The Finance

Minister expressed the confi-dence that with sincerity of pur-pose and hard work we canachieve our economic objectivesby putting the economy back ontrack and bringing in macro-eco-nomic stability to ensure pros-perity, welfare and developmentof the country.Earlier, the Finance Ministerappreciated the efforts made bythe tax administration of theSouth Region and their contribu-tion to national tax revenue. TheFinance Minister expressed thehope that theywill redouble theirefforts to meet their respectivetargets so that the revenue targetof Rs.2475 billion set by the gov-ernment for the current fiscalyear was achieved. Mr. Tariq Ba-jwa, Chairman FBR was alsopresent on the occasion. �

Revenue officials will haveto improve performanceand demonstrate theiradministrative andprofessional abilities toensure that the revenuetarget of

set by the government

FBR Chairman, member Customs direct officials to achieve revenue target

hairman FBR Tariq Bajwa and Member Cus-tomsNisarMuhammadKhanexpressed theirdissatisfaction over the revenue generationin the first quarter of the current fiscal yearand issued directives to the officials to expe-dite the revenue collection and cover the fi-nancial losses. FBR Chairman also stresseduponmeasures tomeet revenue target by theend of first quarter.

ChairmanFederal BoardofRevenue (FBR)Tariq Bajwa and Member Customs NisarMuhammad Khan during their visit of Cus-toms House Karachi held long hour meetingsessionswithCustomsofficials includingChiefCollector (Appraisement) Nasir Masroor,Chief Collector (Enforcement) MuhammadYahya, Chief Commissioner Inland RevenueService (IRS), Director Customs Intelligenceand Investigation, DrManzoorMemon, Addi-tional Director, Mumtaz Ali Khoso, other Col-lectors and Additional Collectors.Sources told Customs Today, “FBR Chair-manandMemberCustoms emphasizeduponintegrity, performance and revenue genera-

tion of Customs Department”.Issues pertaining to Valuation, TransitTrade, Enforcement and IOCO also came un-der discussion but special focus remained ontakingurgentmeasures toboost revenuegen-eration, sources added.Sources in CustomsDepartment informedCustomsToday that themeeting sessionsdis-cussed in detail the Customs Service struc-ture but performance of the officials in firstquarter of the current fiscal year was alsoevaluated.It is pertinent to mention here that gov-ernment has set the revenue target of Rs2,491 billion for fiscal year 2013-14.

Chairman FBR, Member Customs andother seniorofficials of Customsalsopreparedadetailedperformance report andpresentedit to Federal Minister for Finance Ishaq Dar.Chairman FBR also directed the Chief Col-lector (Enforcement) to prepare a detailedreply over Afghan Transit Trade (ATT) issuefor presentingbeforeChief Justice of Pakistanin next hearing at Karachi Registry.Chairman FBR Tariq Bajwa and MemberCustoms Nisar Muhammad Khan could notmeet the delegation of Karachi CustomsAgentsAssociation (KCAA)due to their hecticschedule.�

KARACHISohAIL RAB khANwww.customstoday.com

ederalMinister for Finance IshaqDardirected thehighofficials of FBR, Cus-toms and IRS to ensure the taxationmeasures for improving the revenuegeneration.Dar further asked thehighups to take effective steps in order toeliminate mal-practicing, corruptionand other unfair means in FBR andCustoms Department.Federal Minister for Finance IshaqDar led the meeting sessions at Cus-toms House, Karachi. Chairman FBRTariq Bajwa, Member Customs NisarMuhammad Khan, Chief Collectors,Commissioner InlandRevenueService(IRS), officials ofRegionalTaxOfficers(RTOs), LTU officials, Collectors, Ad-ditional Collectors andDeputy Collec-tors attended themeetings. “Transfersand postings would be done only onmerit and no political interferencewould be allowed in this regard”, theFinance Minister added. He furthersaid that theappointmentofFBRChiefTariq Bajwa and Member CustomsNisarMuhammadKhanby the federalgovernment is an open proof that thegovernment isdetermined to improvethe revenue generation of FBR.On theoccasion, Federal FinanceMinister re-viewed the performance of FBR andCustoms officials and asked them toworkwith dedication in the better in-terest of the country. Chairman FBRandMemberCustomsbriefed theFed-eralMinister over revenuegenerationand utilization of best Customs offi-cials at key posts for improving therevenue target.�

Ishaq Dar chairs meetingsessions of Customs high ups

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Rs. 2475b

08 www.customstoday.comSEPTEMBER 10 - SEPTEMBER 16, 2013EDITORIAL

Founder & Chairman ZulFqar AliEditor Nasim Ahmed

editor@customstoday.com.pk

For advertising & subscriptionmarketing@customstoday.com.pk

+92-322-3370002www.customstoday.com

Phones: 042-35781643-4, Fax: 042-35781645Address: 627, Siddiq Trade Centre, Gulberg, Lahore

ax education is a concept largely unknown inour society. Tax is the life blood of aneconomy but no organized efforts have been

made over the last 66 years to raise publicawareness on taxation issues and impress uponpotential taxpayers the need to fulKll their taxobligations. Only once or twice a year - at the time ofKling of income and sales tax returns –advertisements are placed in newspapers urgingpeople to pay their taxes. There is no campaign toexplain to the people why they should pay theirtaxes promptly and what beneKts they can derivefrom this.The result is that a very small percentage of thecountry’s population are taxpayers. The tax-to-GDPratio in Pakistan is below 10 percent which contrastssharply with the average of 18-20 percent in mostAsian countries. In some social welfare states inEurope where the standard of living is very high thisratio goes as high as 28-30 percent. In thesesocieties, the literacy rate is almost 100 percent andthe common citizen is fully aware of his taxobligations to the state. The fact that the tax returnsof the highest in the land are available for publicscrutiny acts as an incentive to others to pay thetaxes due from them. The entire system is sharplyhoned that there are few cases of tax evasion. And ifsomebody is found cheating, deterrent punishmentis awarded to him.Not so here. The system is riddled with corruption.People widely known to have made their pilethrough illegal and dubious means are never calledto account. It is only the salaried class and somehonest businessmen who pay taxes regularly.Otherwise, it is free for all out there for everyone.The problem calls for a major shake-up of the wholetaxation machinery, plugging of loopholes andruthless accountability of those manning thedepartment.Simultaneously, a tax education programmecomprising talk shows, documentaries and specialmessages on radio and TV and articles in newspapersshould be undertaken to apprise the general public ofthe importance of paying taxes. In this context, theFacilitation and Taxpayer Education (FATE) wing ofFBR can play a signiKcant role. In a special interviewwith Customs Today, Member FATE Riffat ShaheenQazi said that plans are in hand to organise detailedworkshops and awareness raising programmes foruniversity students regarding income and other taxlaws. All stakeholders, including individual taxpayers,tax bars, chambers, clearing and forwarding agentsand withholding agents are to be involved in theseprogrammes. She also said FBR’s online system hasbeen upgraded and the website is regularly updatedfor the help and guidance of taxpayers.A major issue is lack of communication betweentaxpayers and tax authorities. To this end thedepartment’s complaint registration system has beenimproved to ensure that problems are resolved at theearliest. FATE has also started printing brochures toexplain the intricacies of various tax laws. This will beof great help to taxpayers. In this connection it will bea good idea if FATE organizes a series of lectures onthe need and importance of tax for school andcollege students. This is a common practice in manyWestern countries. Without continuing tax educationwe cannot hope to bring about a positive change inthe prevailing tax culture in our society. �

TAX eDuCATIoNeDIToRIAL

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There is little doubt that thePML-N government is deter-mined to turn around theeconomy, and to this end it isbending all its efforts for generat-ing and collecting more tax rev-enue. This is a sound strategy. Theprevious government borrowedheavily from the banks and inter-

national donors with the resultthat thenational debt burdendou-bled within five years.Learning from the experience,the PML-N government wants toavoid the mistake. There is a bighole in the federal budget as thetotal tax revenue is much belowthe annual public expenditure.And the onlyway to plug the gap isto improve tax collectionwhich atpresent forms a lowly less than 10percent of the Gross DomesticProduct (GDP).

For this purpose the govern-ment has put together a highlycompetent andmotivated team offinance and taxmanagerswho arewell known for their professionalexpertise as well as integrity andcommitment. On top of the hier-archy sits Finance Minister IshaqDar whose performance duringNawaz Sharif’s previous tenuresearned him kudos from the inter-national agencies.On the crucial tax front thegovernment has posted as chair-

man FBR Tariq Bajwa, an officerwith a distinguished record ofservice to his credit in the finan-cial sector. Next to him standsNisar Muhammad Khan, MemberCustoms whose duty it is to gen-erate the maximum amount ofrevenue from the import-exporttrade. All three are tried andtestedmen in their own fields andfocused on results. Alreadywindsof change are blowing across theeconomic landscape and thingsare revving up in FBR.�

Accountability key to improved revenue collectionLAHORENASIm AhmeDwww.customstoday.com

www.customstoday.comSEPTEMBER 10 - SEPTEMBER 16, 2013 09PICTORIAL

China sets tax on low-grade coal importsSHANGHAI: China has announced a 3 percent tax on imports of steam coal with low calorific value but is yetto spell out details of its applicability, leading to uncertaintywhether shipments from top low-grade supplierIndonesiawill be subjected to the tariffs. Indonesia is thebiggest seller toChinaof lignite, a formof low-gradecoal, with its shipments accounting for 97 percent of China's total lignite imports in 2013 up to end of July.Moves by China, the world's top coal buyer, to slap an import tariff on lignitemay dent sales of Indonesia.

IshaqDarvisitsKamilCustomsMuseum

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Federal Minis-ter for FinanceIshaq Darwhile talking tomedia during hisvisit to “Kamil Cus-toms Museum saidthat the federalgovernment is de-termined to re-store law and or-der in Karachi.“Karachi is aneconomical hub ofthe country whichcontributes 68 per-cent of the totalrevenue in the na-tional exchequerand the federalgovernment wouldfree the city and itspeople from crimi-nal elements”, headded.He further saidthat the deterio-rated law and or-der situation of thecity is directly af-fecting the busi-ness activities andthe businessmenalong with theirfamilies have beenshifted to othercities and abroad.“The flight ofcapital from thecity is definitely apoint to ponder forthe federal govern-ment and it has de-cided to clean theKarachi from tar-get killers, extor-tionists and othernotorious crimi-nals”, Dar added.–CT Report �

NATIONAL10

NZ Customs nets wildlife smuggler with Fsh in pantsWELLINGTON:AVietnameseman’s attempt to smuggle tropical fish intoNewZealand in his pants floun-dered when he tried to get through customs with his pockets dripping water, officials said. The man ar-rived at Auckland airport from Australia and officials suspected something was fishy because liquid wasseeping from the bulging pockets of his cargo pants.Theman initially said hewas carryingwater from theplane because he was thirsty but a subsequent grilling uncovered the presence of the fish.

www.customstoday.comSEPTEMBER 10 - SEPTEMBER 16, 2013

ThePIAF-FoundersAllianceon Tuesday kick-startedits election campaign byinaugurating election office for Cor-porate andAssociate Class LCCI pollsscheduled for September 23 and 24respectively.The ribbon-cutting was jointlyperformedby thePIAF-FoundersAl-liance leaders Mian MuhammadAshraf and Mian Anjum Nisar in thepresence of former LCCI PresidentsShahzadaAlamMonnoo, PIAFChair-man Malik Tahir Javaid, LCCI Presi-dent Farooq Iftikhar, Senior VicePresident Irfan Iqbal Sheikh, VicePresidentMian Abuzar Shad, formerLCCI Presidents Tariq Hameed,Iftikhar Ali Malik, Mian MisbahurRehman, Bashir A Buksh, MianShafqat Ali, Sheikh Muhammad Asif,Irfan Qaiser Sheikh, Shahid HassanSheikh, Syed Mohsin Raza Bukhari,Shahzad Ali Malik, Muhammad AliMian, Chaudhry Zafar Iqbal, formerSenior Vice Presidents Engineer So-hail Lashari, Abdul Basit, SheikhMuhammadArshad, PIAFSeniorViceChairman Khamis Saeed Butt, ViceChairman Amjad Ali Jawa, LTIAChairman Nasrullah Mughal, Execu-tive Committee Members, represen-tatives of Market Associations andoffice-bearers of Anjuman-e-Tajiranand Quomi Tajir Ittehad.Speaking on the occasion, PIAF-Founders Alliance leaders MianMuhammad Ashraf, Mian Anjum

Nisar, Shahzada Alam Monnoo,Iftikhar Ali Malik, Muhammad AliMian andPIAFChairmanMalikTahirJavaid said that the countrywaspass-ing through critical times and a truebusiness leadership at every tiercould help pull the country out ofthese economic issues.They said that the governmentwould be asked to rationalise the en-ergy prices in the larger interests ofthe manufacturing sector and thetrading community.

They said the presence of such alargenumberof business communityleaders at the inauguration ceremonywas actually a show of confidence intheAlliancepolicies and the top lead-ership of the Alliance would fulfilltheir commitments in future aswell.They said that the new LCCI leader-ship would be asked to utilise theirbest abilities for the causeof thebusi-ness community and the country.They also hoped that the presentgovernment would come up to the

expectations of thebusiness commu-nity and take all economy relatedde-cisions in consultation with the pri-vate sector.They said that theAlliancehas theability to solve the business commu-nity challenges by ensuring continu-ity inpoliciesbywinningall of theAs-sociate and Corporate class seats onSeptember 23 and 24. PIAF-FoundersAlliance also announced itscandidates for Corporate andAssoci-ate Class.�

Committee toresolve taxrefund issues

Import ofgold restored

FBR is likely to consti-tute a dispute resolu-tion committee com-prising tax officials andmembers fromprivate sec-tors to address refund is-sues arising in the supplychain.“A standing committeecomprising taxofficials andmembers from FPCCI hasbeen set up to resolve therefund issue arising inCREST software,” sourcessaid. FBR recentlylaunched theCREST (Com-puterizedRisk-BasedEval-uation of Sales Tax) soft-ware to check bogus claimof refunds. After crosschecking of sales data andpurchase through the soft-ware, FBR held up refundsworth billions of rupees.Subsequently, FPCCIraised the issue in a recentmeetingwith FinanceMin-ister Ishaq Dar. The forumsaid it was injustice to pe-nalise the entire supplychain when only one per-son is committing fraud.Afterwards, the FinanceMinister directed FBR tohold discussion with thebusiness community rep-resentatives to resolvetheir issues. The ministerordered FBR to form acommittee of membersfrom both the sides in thisregard.�

Directorate of the Customs In-telligence and Investigation(I&I), Karachi is facing short-age of staff and latest equipment.Sources inDirectorate of Customs(I&I) told Customs Today that nonew recruitment in the departmenthas beenmade for last 15 years.“Sepoys,who are currentlywork-ing in thedepartment, are agedwhileno recruitment has been made inplace of them”, he added.He further said that lack of officestrength is also affecting the per-formance of Customs I&I but the de-partment is providing best servicesin limited resources.“Due to limited resources, the de-partment often faces difficulties toconduct any operation”, he added.“If the prevailing shortfall of em-ployees and equipment is addressed,the Customs Intelligence and Inves-tigationDepartment could safeguardmore revenue by conducting raids”,

he added.When contacted Additional Di-rector Customs Intelligence and In-vestigation, Mumtaz Ali Khoso saidthat the department has alreadywritten a letter to officials concernedin this regard and hoped that theywill take appropriate action accord-ingly.It is pertinent to mention herethat no new recruitment has alsobeen made in Model Customs Col-lectorate (MCC) Preventive undergrade 17 for last 15 years.�

Directorate Customs I&I facing shortage of staff, equipmentKARACHICuSTomS ToDAY RepoRTwww.customstoday.com

The department has alreadywritten a letter to officialsconcerned in this regard andhoped that they will takeappropriate action accordingly,saysmumtaz Ali khoso

pIAF-Founders Alliancekick-starts its election campaignLAHORECuSTomS ToDAY RepoRTwww.customstoday.com

KARACHICuSTomS ToDAY RepoRTwww.customstoday.com

LAHORECuSTomS ToDAY RepoRTwww.customstoday.comThe government hasrestored import ofgold for export ofjewellery, Trade Develop-ment Authority of Pak-istan said.The newprocedure hasbeen issued vide SRO -760(I) /2013datedSeptember2, 2013. It may be recalledthat the import of gold un-der the defunct SRO 266was temporarily sus-pended for a month witheffect fromAugust 1, 2013as per the directives of theEconomic CoordinationCommittee (ECC). Thegov-ernment assured tradersthat it would allow the im-port in a month after re-vamping SRO-266 in ordertominimisemisuse.�

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CARTOONSSPECIAL 11www.customstoday.comSEPTEMBER 10 - SEPTEMBER 16, 2013

Australian Customs officer accused of importing drugsSYDNEY: A female Australian customs official will front court after being charged with importing andtrafficking drugs. The 27-year-old former border protection officer at Sydney airport was arrested onMonday by Australian Federal Police (AFP). She has since been charged with two counts of importing amarketable quantity of border controlled drugs and one count of trafficking.

Published by M. F. Riaz for Customs Today and Printed at Dhoom Printing Press Masheer Mahal Building, Off: I. I. Chundrigar Road, Karachi

12 www.customstoday.comSEPTEMBER 10 - SEPTEMBER 16, 2013

Rs3.734b collected on account of indirect taxKARACHI: FBR collected Rs3.734 billion additional revenue on account of indirect tax. The Board generatedRs640.93mafter raising standard rate of sales tax from16pc to 17pc in local supplies as the impact of this increasedrate on imports stoodatRs2.68b. FBRcollectedRs131.26m from1pc further tax on taxable supplies tounregisteredindividuals while Rs220.738m from withdrawal of 50pc exemption to KP selected districts, Fata and Pata, andRs52.9m fromwithholding of whole amount of sales tax on purchasesmade from unregistered persons.

t is very difficult for the CustomsDepartment to clear import or ex-port consignments worth Rs 65 bil-lionwithout the active help of clear-ing agents. Their task is not onlysignificant and important but they,in fact, are playing pivotal role afterbecoming a bridge between Cus-toms officials and traders. Theirrole is like a lawyer who becomesmediator between a judge and acomplainant. Customs clearing

agents also hold licences which areissued by the competent authority.These views were expressedby Lahore Customs ClearingAgents Association PresidentAgha Iftikhar while giving anexclusive interview to Cus-toms Today at hisMughalpura Dry Port of-fice.Agha Iftikhar furthersaid that in the currentfiscal year, Pakistan’sexports are estimatedto be around $25 bil-lion while its im-ports have beensurpassed the

mark of $41 billion. The total vol-ume of imports and exports hasreached $66 billion and Customsclearing agents are playing the roleof catalyst in generating revenue inthe shape of Customs duties. Withover 1,200 licences, Customs clear-ing agents across the country arenot only meeting the Customs De-partment’s revenue collection tar-gets every year but they are alsosatisfying importers and exportersin preparing documents of theirconsignments and properly han-dling their cargos.Replying to a question, AghaIftikhar dispelled the perception

that Customs clearing agents are al-legedly involved in wrong-doings.He clarified that only Customsclearing agents have made it possi-ble for Customs Department to col-lect targeted revenue, otherwise itis impossible that Customs Depart-ment could raise such a heftyamount of over Rs220million in thecurrent fiscal year. He further saidthat Customs clearing agents arenot working against the interest ofthe state rather they are helping allagencies concerned including Cus-toms Department and other stake-holders like importers and ex-porters. Without the active help ofCustoms clearing agents, AghaIftikhar claimed, neither the gov-ernment can collect tax on importsnor can traders import itemsworthabove $40 billion annually. He ad-mitted that there are some black

sheep among clearing agents also.This negligible ratio of black sheepis found in every department, headded.Agha Iftikhar further elaboratedthat imports and exports are a verysensitive issue. Sometimes peoplewith vested interests try to exportbanned items like drugs. So Cus-toms clearing agents collect com-plete information about their re-spective clients. If a clearing agentdoes not know the office, house andgodowns of his importer client, howis it possible for him to locate hisclient at the time of investigation ofexporting contraband items? Be-sides this, a clearing agent has tosatisfy government officials so thata handsome amount in the shape ofCustoms duty on imports could becollected and deposited in nationalkitty.Replying to another question,Agha Iftikhar said that though allclearing agents are not highly liter-ate persons but still they feel goodwhen they are offered refreshercourses or asked to participate in aseminar or conference for their ca-pacity building. He further said thathe has also attended a number ofconferences not only within Pak-istan but also abroad. For example,he said that he has just visited Swe-den to attend a seminar whichhelped him to improve his knowl-edge regarding Customs issues, headded.Agha Iftikhar blatantly revealedthat bureaucracy is themain hurdleto clearance of import consign-ments. He claimed that under aplan, Railways’ goods trains havebeen suspended to help the roadtransportation. Railways chargeonly Rs 50,000 per container fromKarachi to Lahorewhile road trans-porters charge over Rs 150,000 forcarrying same bonded containerfrom Karachi to Lahore. Now, im-porters’ first priority is to cleartheir cargo containers at Karachiports rather than from Lahore dryports just to save their precioustime as well as money.

The total volume of imports and exports crossed $66 billion andCustoms clearing agents are playing a role of catalyst in generatingrevenue in the shape of Customs duties

LAHORESTAFF RepoRTeRwww.customstoday.com

Clearingagents:BridgebetweenCustoms officials & traders

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