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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Our priority goals are to inducetaxpayer friendliness of taxadministration, remove taxrelated irritants and promoteconducive tax culture, says FTO| See pAGe 6-7 |

Tariq Bajwa, Chairman ofFederal Board of Revenue(FBR), ordered the Regional TaxOffice (RTO) Lahore officers totry their best to meet thebudgetary target.| See pAGe 4 |

Bajwa directs RTO officers

| See pAGe 11 |

For this purpose, DG I&I Riaz Khanconducted several meetings withIntelligence officials and urgedthem to adopt zero tolerancepolicy against corruption.| See pAGe 10 |

FTO redressing grievances

DG I&I to rid of corruption

Cartoons Special

resident Karachi Customs Agents Association(KCAA) Saifullah Khan has termed the intro-duction of four different Collectoratesnamely Port Qasim Collectorate, East Collec-torate, West Collectorate and Export Collec-torate in one WeBOC System, a conspiracyagainst the country.Commenting on Web Based One-Customs(WeBOC) System in an exclusive interviewwith Customs Today, President KCAA in-formed that the said system was introducedin the year 2011 and before this, PaCCS Sys-tem, also known as “Care” and formed withthe help of Agility Software of Kuwait, wasin working.“Before the introduction of WeBOC in 2011,the Chairman Federal Board of Revenue(FBR) and Member Customs briefed thetrade bodies that they are going to introducean automation system which is parallel toPaCCS vis-à-vis working and quality, but un-fortunately, there is no use of automation inWeBoC and it is only used for data entry”,Khan added.To a query, President KCAA said that Cus-toms agents are facing tremendous diffi-culties in clearance of importconsignments under WeBOC system and

Customs officials need more training to op-erate the said system in a proper way.“Despite the fact that KCAA has writtenmany letters to Chairman FBR and MemberCustoms for advancement of WeBOC, no ac-tion has been taken in this regard”, headded.Responding to another query, SaifullahKhan said, “Bifurcation of PaCCS Collectorateinto 4 other Collectorates shows malafide in-tentions. On the one hand, this step createdshortage of officials and, on the other, itcould increase corruption in Customs De-partment”.He further demanded the establishment ofa single Assessment Hall, the same as in thepast, instead of four individual assessmenthalls of East Collectorate, West Collec-torate, Port Qasim Collectorateand Export Collectorate.

PKARACHISOHAIL RAB KHANwww.customstoday.com

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02 NATIONAL www.customstoday.comSEPTEMBER 17 - SEPTEMBER 23, 2013

Govt urged to review FeD on ship-breaking industryKARACHI: A newly-constituted group of steel makers, Pakistan Steel Manufacturer Association (PSMA),has urged the government to review federal excise duty (FED) on the ship-breaking industry. The PSMAmembers said that hike in power tariffs had further widened the price difference between steel productsandother production createdby the ship-breaking industry. The rise in electricity prices had also increasedthe rate of steel by at least Rs5,000 per tonne.

Replying to a question, PresidentKCAA said that the authorities con-cerned in Customs Departmentshould utilize all their resources inorder to run WeBOC in an effectivemanner, as clearing agents are stillfacingdifNiculties in NilingGDs throughthis particular system and the pre-vailing situation compels them to NileGDsmanually.With the introduction of KAP-ECollectorate andKAP-WCollectorate,the goods which ground at PakistanInternational Container Terminal(PICT), KAP-E Collectorate are goingto Pakistan Shaheen Terminal, NLC,TPXandTimberPortwhile thegoodswhich ground at Karachi Interna-tional Container Terminal (KICT),KAP-W Collectorate are going to Al-Hamd, BurmaOil Terminal andMTO.SaifullahKhan further said that theFederal Board of Revenue and Pak-istan Customs should take into conNi-dence the Agents Association andtrade bodies before implementing orintroducing any new system.Commenting on the upcoming

KCAA annual elections, Saifullah saidthat they are fully prepared for theelections and hoped that their panelwould deNinitely win the polls with athumpingmajority.Khan hoped that the Karachi Cus-tomsAgentsAlliancewill continue itsstruggle for safeguarding the rightsof clearing/forwarding agents aftercoming into power again.“We stand shoulder-to-shoulderwith clearing agents in difNicult timesand will continue to resolve their is-sues related to clearanceof goods”, headded.General Secretary KCAA YahyaMuhammad, while expressing hisviews over division of PaCCS Collec-torate, said that Customs agents andimporters are facing difNiculties in Nil-ing GDs (Goods Declaration).“We want one-window operationthat was functional in the past underPaCCS System”, Yahya added.�

KCAA President decriesbifurcation of paCCS Collectorate

Chairman APCAA Syed ShamsBurney termed the involvementof Customs agents in ATT scamunlawful. Burney further said

that no one should mislead theFederal Government and SC

regarding ATT scam.

From page 01

The Karachi Customs AgentsAssociation (KCAA) and All PakistanCustoms Agents Association (APCAA)

observed countrywide strike against theissuance of around 1178 Order-in-Original(ONOs) to the Customs agents in AfghanTransit Trade (ATT) scam on September 10-11 which ended after successful talks withCollector Model Customs Collectorate(MCC) West Muhammad Saleem. Thetransporters bodies including KarachiGoods Transport Association, United GoodsTransport Association and others alsosupported the strike.The sources informed Customs Today that adelegation of Customs agents comprisingPresident KCAA Saifullah Khan, ChairmanAPCAA Syed Shams Burney, Zahid Qazi,Ifthiqar Shaikh and others met with theCollector Model Customs Collectorate (MCC)West Muhammad Saleem at his office.During the meeting, the Customs officialsagreed upon to conduct re-hearing of theshow-cause notices issued against

Customs Agents in Afghan Transit Trade(ATT) scam. Muhammad Saleem assuredthem to redress their issues as soon aspossible. He also assured that no new ONOwould be issued against them. TheCustoms officials also assured the Customsagents to constitute a committee forredressal of their grievances regardingWeBOC.Sources said that KCAA President Saifullahdemanded establishment of a jointinvestigation team comprising the officialsof Customs, NAB, FIA, Customs Intelligenceand Customs Agents to conduct impartialand unbiased inquiry into the ATT scamand identify the real culprits. He alsodemanded withdrawal of ONOs issuedagainst Customs Agents.On this occasion, Chairman APCAA SyedShams Burney termed the involvement ofCustoms Agents in ATT scam unlawful. Hefurther said that no one should misleadthe government and Supreme Courtregarding missing containers scam. �

Customs Agents strike

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03www.customstoday.comSEPTEMBER 17 - SEPTEMBER 23, 2013 ADVERTISEMENT

NATIONAL04

China’s exports improve in August: CustomsBEIJING: China’s exports rose 7.2 percent year on year to $190.61 billion in August, according to customs fig-uresreleasedrecently.Thegrowthratewas2.1percentagepointshigher thanJuly. Importsalsorose lastmonth,gaining 7 percent to $162.09 billion, the General Administration of Customs said in a statement. Total foreigntrade grew 7.1 percent in August over the samemonth in 2012 to $352.7 billion. Trade surplus widened by 8.4percent year on year to $28.52 billion lastmonth.

www.customstoday.comSEPTEMBER 17 - SEPTEMBER 23, 2013

Model Customs Collec-torate’s anti-smugglingwing conducted27 raidsand conNiscated illegal goods worthRs59.64 million involving Customsduty of Rs35 million during themonth of August, while Rs40millionworth of illegal goods were alsoseized in July 2013.Customs top ofNicial said that thedepartment’s ofNicials have been in-structed to conduct organisedopera-tions to weed out smuggling.During August 2013, the anti-smuggling wing conNiscated usedgenerators worth Rs0.42 million,8,262kg of MS pipes worth Rs 0.8m;27,000kg steel pipe of Rs27 million;auto parts worth Rs0.60m; cartonsof shampooworthRs0.2516m;1,180cartons of medical X-ray Nilms worthRs15.75m and Toyota Vitz Car ALJ-434; Toyota Land Cruiser APL-13;Shafoon Fabric in rolls; 18,995kg ofMS sheets; 1,500kg of plastic dana;100 KVA diesel generator; 14,238yards A/S cloth and 4,885 yardsladies & gents cloth as well as sevenbodies of Mazda trucks, etc.The anti-smuggling unit alsoseized 11,200 yards blended fabricin rollworthRs0.80m, 341KVAuseddiesel engine generators worth Rs2.60m, led ZIC, used electric motorsand 150 bags of polythene plasticdana.During July 2013, the anti-smug-gling wing seized smuggled goods

and articles worth Rs40million. TheconNiscated illegal goods includedladies cloth worth Rs0.44 million,617.28kg parachute fabric worth Rs0.35million, 410kgsA/S clothworthRs0.29million, 39KVAdiesel genera-tor worth Rs1.20 million, 275-300KVA diesel generatorworth Rs2mil-lion and other miscellaneous goodsworth Rs1.30 million. The wing alsoapprehended Honda Civic car IDS-686,HondaAccord car LEE-08-7217,Toyota Corolla car IDF-8075, ToyotaCrown car R-2790, DVDs & clothworth Rs1.40 million, 300 rolls ofladies suiting clothworthRs0.75mil-lion and miscellaneous goods worthRs0.75million.While, 500 KVA diesel generatorworth Rs2 million, 6,048kg Gerrycloth worth Rs3 million, 10,000 me-

ters Indian clothworthRs1.0million,250 bags of dry milk powder, 1,200-KVA, 20-KVA and 75KVA diesel gen-erators and Mazda truck LES-13-6071were also conNiscated.Thedepartment also seized2,460yardsA/S clothworthRs0.25million,35,425kg HRC coils Rs3.04 million,12 tones steel coilsworthRs1.20mil-lion, 135,000 yards polyester liningcloth worth Rs0.70 million, ToyotaCorolla car LXE-786 and 2,543kgMSpipeworthRs3.44million. Thebodyof a Mazda truck/LES-09-1916, 100bags of plastic dana worth Rs0.50, 2Nos used generator worth Rs1.80m,9,300 yards Indian origin A/S clothworthRs0.58m, 100-KVAdiesel gen-erator worth Rs 1.00 and 12,156packsof shampoos, creamsandsprayworth Rs1.28m.�

Customs impounds illegal goodsworth Rs100m in July-AugLAHOREm HAYATwww.customstoday.com

Federal Tax Ombudsman (FTO)Zonal ofNices will be set up inLahore, FaislabadandPeshawarto facilitate the business communitywho have to travel to Islamabad andLahore for getting relief from FTO, asource quotedAbdul Rauf Chaudhry,FTO as saying.The zonal ofNices of the FederalTax Ombudsman Lahore in andKarachi are being strengthenedwithappointment of onemoreAdvisor ineach very soon.Lahore ofNice has one Judge andone Advisor while the Karachi ofNicehas one Judge and twoAdvisors, andalready working.In Quetta, FTO ofNice is alreadyoperative. Opening of FTO ofNice inMultan is also on the cards, thesource said.FTO secretariat was establishedin 2001 in Islamabad when it wasnoted that more than Nifty percentcomplaints Niled with Federal Om-

budsman related to taxes and Cus-toms duties.He said special cells were beingset up at FTOofNices to ensure timelyimplementation of FTO orders anddecisions so that the complainantscould get their payments and re-funds within deNined time period.

He said now provision of con-tempt of FTO orders has been in-cluded in the FTO laws/ mandate.There shall be severe punishment forFBR ofNicers who fail to implementFTO orders and rulings within aspeciNied time, he informed.� All Pakistan Paper MerchantsAssociation (APPMA) and hundredsof traders of affiliated markets

announced to support PIAF-FoundersAlliance candidates in the LCCI electionsbeing held on September 23rd and 24th.The announcement was made by theAPPMA leaders Khamis Saeed Butt,Qayum Raza, Bao Muhammad Bashir,Saadat Hussain, Khawaja Nadeem SaeedWain, Muhammad Ajmal MuhammadAkram, Samiullah Butt during the visit ofPIAF-Founders leaders Iftikhar Ali Malik,Muhammad Ali Mian and candidates forAssociation Class. They said that traders ofPaper Market would put their weightbehind the Alliance candidates forAssociate Class Sohail Lashari, KhawarRasheed, Talha Tayyab, Raja Hamid Riaz,Rizwan Khalid, Muhammad Haroon andMuhammad Akram in the larger interestof business community. �

Tariq Bajwa, Chairman of FederalBoard of Revenue (FBR),ordered the Regional Tax Office

(RTO) Lahore officers to try their bestto meet the budgetary target. Heissued these directives while chairinga meeting of the ChiefCommissioners of RTO-I, RTO-2,Large Tax Payer Unit (LTU) and otherhigh officers. The meeting discussedchanges made in this fiscal year’sbudget by the government, and howto generate revenue through thesechanges. Member Inland Revenue(IR-Operations) Muhammad Ashraf,RTO-I Chief Commissioner ShafqatMahmood, LTU Lahore Chief MustafaAshraf and RTO-II Chief DrMuhammad Irshad also participatedin the meeting.�

The first-ever consignment ofthe Pakistani mangoes reachedAustralia following complete

clearance by Customs andQuarantine Department of Australiaafter thorough examination.Mangoes of Pakistani origin finallyreached wholesale markets ofAustralia after two-day lab test of4.5 tonne of mangoes. TheAustralian authority has givenaccess to Pakistani company afterthree years' consecutive inspectionsof plant, technology and fruitquality. Hence, the country hasachieved the landmark this yearwhile leaving behind differentcountries of the world keen topenetrate into Australian fruitmarket. "This will enhance exportsearning of the country whereasincreasing popularity of thePakistani fruits in the world,"sources said. �

FBR chief directsLahore RTOofficers toachieve target

AustralianCustoms clearsPakistani mangoes

LAHORECuSTOmS TODAY RepORTwww.customstoday.com

LAHORECuSTOmS TODAY RepORTwww.customstoday.com

FTO zonal offices in Lahore, Faislabad soonLAHORECuSTOmS TODAY RepORTwww.customstoday.com

ederal Tax Ombudsman (FTO) Abdul RaufChaudhry has assured textile exportersthat he will point out their tax-relatedissues in meeting with the FederalBoard of Revenue (FBR) chairman.The FTO, during a meeting withexporters at PHMA House, said that theOmbudsman Office was aware of thetextile industries’ problems and wouldtry its best to resolve their disputes withthe tax office.Abdul Rauf Chaudhry said that he woulddiscuss the textile sector's problemswith the FBR chairman as pendingdecisions were creating troubles for theexporters. He said that the export-

oriented industrial sectors should growas new competitors especiallyBangladesh was emerging on the globalmarket, posing serious threat toPakistan's textile sector.He told the exporters that Bangladesh,being a non-cotton producing country,had enhanced its textile export to $25billion, whereas Pakistan even withlocally grown raw materials was farbehind in the competition. PakistanHosiery Manufacturers and ExportersAssociation (PHMA) Central ChairmanMuhammad Javed Bilwani informed theFTO about the industry’s problems whichFBR is not solving. —CT Report

FTO for addressing exporters’ tax issues

F

APPMA to supportAlliance in LCCI pollsLAHORECuSTOmS TODAY RepORTwww.customstoday.com

During August 2013, theanti-smuggling wing

confiscated used generatorsworth Rs0.42m, 8,262kg of

MS pipes worth Rs 0.8m;27,000kg steel pipe ofRs27m and auto parts

worth Rs0.60m

ADVERTISEMENT 05www.customstoday.comSEPTEMBER 17 - SEPTEMBER 23, 2013

06 www.customstoday.comSEPTEMBER 17 - SEPTEMBER 23, 2013SPECIALREPORT

n an exclusive talk with Customs To-day, Mr. Rauf said, “FTO OfNice hascomplete authority to launch an in-quiry over any complaint, and this jobcan be assigned to any ofNicial at hisofNice. For this purpose, the autho-rised ofNicial can access any ofNicialdocument necessary for conductingthe investigation. And the Ombuds-man can also issue warrants againstanybody asking him to appear beforehim. FTO Secretariat can also takecognizance of cases referred to himby President, Parliament, SupremeCourt or High Courts.”He said, “Main purpose of FTO Sec-retariat is to undertake initiatives pro-viding inexpensive and speedy justiceto taxpayers aggrieved by tax malad-ministration. For this purpose twomore regional ofNices are being oper-ationlised at Faisalabad and Pe-shawar. A state-of-the-art online com-plaint Niling system is also being put inplace to reduce time and cost of com-plaint Niling.”He further said, “An FTO-taxpayer

interaction has been establishedthrough periodic meetings withChambers of Commerce and Industry,trade bodies, business associations,tax bars and civil society organiza-tions in the country. Our priority goalsare to induce taxpayer friendliness oftax administration, remove tax relatedirritants, reduce cost of doing busi-ness and promote conducive tax cul-ture in Pakistan.”He said, “Under Section 16 of es-tablishment of Federal Tax Ombuds-man (FTO) Ordinance, 2000, the Om-budsman enjoys same powers as theSupreme Court to punish any personfor contempt, if he abuses, interfereswith, impedes, imperils, or obstructsthe process of the Ordinance in anyway or disobey his order.”Answering to a question, Mr. Raufsaid, “He can recommend any caseagainst the tax functionary to the au-thority concerned to take appropri-ate remedial action to redress the is-sue. He can also recommenddisciplinary action and order pay-

FTOFULLyEMPOWEREDTO

ABDURRAUF

Federal Tax Ombudsman (FTO)Abdur Rauf Chaudhrysaid that law empowers a taxombudsman to investigatecomplaints of taxpayersagainst maladministration.

I

ReDReSSGRIeVANCOFTAxpAYeRS:

ISLAMABADFAIZA ISRARwww.customstoday.com

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07SPECIALREPORTwww.customstoday.comSEPTEMBER 17 - SEPTEMBER 23, 2013

ment of compensation by the arranttax ofNicial to the aggrieved citizen. Inthis regard, FBR is given 30 days timeto implement the Ombudsman’s or-ders, if FTO is not satisNied with FBRexplanation, he can refer thematter tothe President to take Ninal decision.”Talking about his mandate, MrRauf said that an Ombudsman’s corefunction is to ensure that citizens aretreated professionally, courteouslyand fairly, and tax ofNicials are pro-viding complete, accurate, clear andtimely information. And we areachieving it by conducting impartialand independent investigations of tax-payers’ complaints about unfair treat-ment by the tax ofNicials.Answering to another question, hesaid that under Section 14(8) of FTOOrdinance, the Ombudsman can re-view any Ninding/recommendationmade or any order passed.He said, “We also identify and re-view systemic andmaladministrationrelated issues with FBR. The corefunction of FTO revolves around: dis-

Our priority goalsare to induce

taxpayerfriendliness of tax

administration,remove tax related

irritants, reduce costof doing business

and promoteconducive tax

culture in Pakistan

CeS

posal of complaints of tax maladmin-istration promptly, justly, fairly andindependently, and to rectify any in-justice done to a taxpayer by actionsof the tax employees of FBR/RevenueDivision, Government of Pakistan. Butthe jurisdiction of the Ombudsman’sOfNice does not extend to cases thatare subjudice.”He said that we exercise powersindependent of the executive, and allexecutive authorities throughout Pak-istan are required to act in accordancewith FTO. “We are focused onstrengthening accountability. Past ex-perience reafNirms the fact that theOmbudsman cannot work effectivelywithout necessary institutional ca-pacity and resources. FTO cannot ex-ercise Ninancial and operational inde-pendence without government’sunNlinching support and strong re-solve to tackle the menace of malad-ministration. Jurisdiction of the Om-budsman should be understoodproperly to avoid overlap of powersamong institutions,” he concluded. �

An Ombudsman’s core function is to ensure thatcitizens are treated professionally, courteouslyand fairly, and tax officials are providingcomplete, accurate, clear and timely information.And we are achieving it by conducting impartialand independent investigations of taxpayers’complaints about unfair treatment by the taxofficials

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08 www.customstoday.comSEPTEMBER 17 - SEPTEMBER 23, 2013EDITORIAL

Founder & Chairman Zulfiqar 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

BR’s Board-in-Council has approved anaudit plan for income tax and sales taxunder which thousands of taxpayers will

be selected through random balloting fordetailed scrutiny of their accounts. This is one ofthe many measures FBR has adopted to achievethe target of collecting an amount of Rs 2,475billion in taxes in the current fiscal year ascompared to Rs 1936 billion in the last financialyear. This year’s figure is 28 per cent higherrelative to the actual collection last year. Theundertaking is not easy, considering the factthat during the last 2-3 years despite majormobilization efforts to broaden the tax base,the annual growth rate in tax collection did notgo beyond 10-15 percent. The fact that FBR hascollected only Rs 290.5 billion in first twomonths and the first week of September 2013shows the enormity of the challenge FBR faces.This figure marks a growth of 17 percent overthe figure for the same period of the lastfinancial year.Under the FBR’s audit plan, 5 percent taxpayerswill be selected through random balloting fordetailed scrutiny of their documents. It is aswell that FBR has decided to conduct audit onthe basis of random balloting as againstparameter based audit because the lattermethod is challenged in different courts onadministrative and legal grounds, costing theBoard much in terms of time, energy andattention. The legal wrangles FBR has facedover the years on the issue of parameter basedaudit created insurmountable difficulties inimplementing its audit plan.Audit is an important tool to ensure compliancewith rules by the existing taxpayers andminimize the incidence of figure fudging andtax evasion. It is no secret that hundreds ofbillions of rupees are lost to the nationalexchequer every year due to manipulation offigures managed through an unholy collusionbetween tax men and taxpayers. Detailedscrutiny of submitted tax returns acts as adeterrent against this menace.But there are certain pre-conditions whichmust be kept in view if the audit plan is tosucceed in its objectives. It should remainfocused in its scope and application. Salariedclasses have rightly been excluded from theaudit purview. Similarly, no time should bewasted in pursuing small and mediumtaxpayers. The audit initiative would be moreproductive if the noose is tightened against thebig fish. At the same time it is important toensure that the whole exercise is conducted in afair and transparent manner. FBR has already aTax Audit Management System in place tomonitor the progress of audit notices issued.This system should be run in an efficientmanner to avoid misuse of audit notices byunscrupulous elements in the department forpersonal gains. �

FBR’S AuDITpLAN

eDITORIAL

F

IMF loans never comewithout aprice. While deciding to bail acountry out of a difNicult situa-tion, it lays down conditions to en-sure that the recipient govern-ment undertakes necessaryreforms to put its Ninances in or-der. The same formula applies tothe 3-year arrangement under theExtended Fund Facility amount-ing to $6.68 billionwhich IMF hasapproved for Pakistan. Accordingto the Fund, the programme willhelp Islamabad to reduce NiscaldeNicit and implement structuralreforms to boost tax revenue, in-vestment and growth.

In anticipation of the IMF facil-ity, the Pakistan government hasalready taken some difNicult deci-sions to achieve the intended ob-jectivesofmacroeconomic stability,including a hike in utility tariff andPOL prices, a cut in power sectorsubsidies and an understandingbetween federal and provincialgovernments on a budget surplusas the 18th Constitutional Amend-ment and the 7th NFC Award haveshifted the bulk of resources fromthe centre to the provinces.The restoration of macroeco-nomic stability through tighten-ing of Niscal andmonetary policiesas prescribed by IMF is the realchallenge facing the government.Pakistan has already agreed withthe IMF to undertake key reforms

to raise the tax-to-GDP ratio byone per cent each year. To this end,in this year’s budget steps havebeen taken to increase the GSTrate and slap higher excise dutieson cigarettes. At the same time,the corporate minimum tax ratehas been revised, and higher per-sonal income tax rates have beenprescribed for the top incomebrackets. While, in some cases,withholding tax rates have beenincreased and new withholdingrates introduced, movable assetshave also been subjected to a newlevy.In the energy sector, commer-cial industrial tariff hasbeen raisedwhich has reduced subsidies by0.75 per cent of GDP. Moreover byend-December 2013, the govern-

ment will also implement a newgas levy that will increase tax rev-enueby0.4per cent ofGDPoroverRs120 billion on annual basis.Butwe cannot expect long termimprovement in tax collection un-less we introduce basic reforms intax administration. This is essentialto fructify the initiative to incorpo-rate 300,000 new taxpayers intothe income taxnet launched in July.The notices issued to 10,000 po-tential new large tax payers alsoneed to be followed upwith provi-sional assessment, collection, pe-nal as well as prosecution pro-ceedings.In this context, FBR has theonerous task of improving the rev-enue administration for sales, ex-cise and customs.�

ImF and tax reformLAHORENASIm AHmeDwww.customstoday.com

www.customstoday.comSEPTEMBER 17 - SEPTEMBER 23, 2013 09PICTORIAL

Indian Customs arrests man with 1kg cocaine in stomachMUMBAI:TheIndiancustomsofficialshavearrestedaGhananationalatMumbai’s internationalairport foral-legedly trying to smuggle 1kg of cocaine into the city. According to assistant commissioner of Customs, RishiYadav, the accused had filled the cocaine in 76 capsules, whichwere found in his stomach at the time of his ar-rest. The cocaine is said to be bought fromLatin Americans. The accused has only been identified asMubarak,who as per his passport details, has come to the city for the first time.

Aqeel Ahmed elected president of RICAA

MEMBERIR(OPERATIONS)&MEMBERIR(TAXPOLICy)ATLTUKARACHI

qeel Ahmed Rana of SeaInternational has beenelected unopposed aspresident ofRawalpindi/IslamabadCustoms Agents Association.The election was scheduled tobe held in 1st week OfSeptember 2013. Last date forsubmission of nominationpapers was 29 August. Forthis purpose, 14 applicationswere received. On 30-08-2013, 5 nomination paperswere withdrawn. Theremaining nomination paperswere scrutinized and declared

as elected. Their names anddesignations are as under:-Aqeel Ahmad Rana of Seainternational as President,Mohammad Razzaq as SeniorVice President, MalikMuhammad Afzal as ChiefExecutive, Malik MaqboolHussain as VP for Dry Port, Kh.Naseer Ahmed as VicePresident for Export, M.Rafique as Vice President forImport, Akhtar HussainBukhari as General Secretary,Malik Ejaz Hussain as JointSecretary and MuhammadIslam as Finance Secretary.�

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NATIONAL10

NZ Customs tracking parcel cheatsWELLINGTON: New Zealand Authorities are tracking parcel cheats who don't declare the correct valueof the goods they're sending to New Zealand. CustomsMinisterMauriceWilliamson says the senders tryto get their goods in as express delivery low value imports. In one case, electronic parts imported from theUnited States were declared at $326 and discovered to have a value of $24,304. A Customs operation ex-amined 2562 consignments and found 733 were above the low value threshold.

www.customstoday.comSEPTEMBER 17 - SEPTEMBER 23, 2013

Kamran welcomesUkrainian interestin development ofports & shipping

FBR reviewsSRO regime

Ukrainian AmbassadorVolodymyr Lakomov hasshown his interest in

developing the areas related to theMinistry of Ports and Shipping.Honorary Consul of Ukraine in KarachiEngr M A Jabbar conveyed theambassador’s message to FederalMinister for Ports and ShippingKamran Michael. He said that Ukrainealso wanted to sign covenantsbetween the companies of the bothcountries.Jabbar informed the minister aboutthe Ukrainian heavy industry andtechnology which could help Ministryof Ports and Shipping meet needs of21st century. Kamran Michael,appreciating the Ukrainianambassador’s desire, said that theUkrainian companies should visitPakistan and assess their owncompetitiveness to participate in thedevelopmental matrix of therequirements. The minister laudedthe Ukrainian technology used inmajor parts of Pakistan Steel Millsand Al Khalid tank in Army and saidthat many heavy duty equipmentswould also be needed for differentprojects of Gwadar Port Authority.Kamran appreciated the Ukrainianexperts’services in Pakistan Steel Millsduring the crucial period throughwhich the mill was passing. He said hewould soon meet with Ambassador ofUkraine in Islamabad.�

KARACHICuSTOmS TODAY RepORTwww.customstoday.com

The Director General (DG)Customs Intelligence andInvestigation (I&I) Muham-mad Riaz Khan conducted severalmeetings with Intelligence offi-cials of the Directorate of CustomsI&I, Karachi.Sources in Directorate of Cus-toms I&I told Customs Today thatDG Customs I&I Riaz Khanstressed upon improvement inperformance of the officials andcoordination among the Intelli-gence officials.The DG I&I also asked the offi-cials to enhance the intelligencesystem and lay down effective net-work in this regard.During the meeting, DG I&IKhan also emphasized that effec-tive measures should be taken tocurb tax evasion and under-in-

voicing.On the occasion, he reviewedthe performance of the officials inDirectorate of Customs I&I andlauded their efforts despite lim-ited staff and equipment.“Issue of shortage of officials inDirectorate of Customs I&I cameunder discussion and DG CustomsIntelligence assured that the saidissue would be redressed soon”,sources added.Riaz Khan also evaluated the re-cent raids conducted by Intelli-gence officials and saved huge taxevasion.During the meeting, the DG Cus-toms Intelligence issued clear di-rectives to the Intelligence officialsthat they should adopt “zero tol-erance policy” against corruptionand keep vigilant eye over tax eva-sion and under-invoicing cases.The meeting was attended byDirector Customs Intelligence andInvestigation Dr Manzoor HussainMemon, additional directors andintelligence officers. �

The panel of Karachi CustomsAgents Alliance will win theannual general elections forthe year 2013-14 unopposed.This was stated by SagheerQureshi, Assistant Vice President ofKarachi Customs Agents Alliance(KCAA) during an exclusive inter-view with Customs Today at KCAA

ofNice.Sharing his views, Qureshi said,“Current ofNice-bearers of KCAAhave served Customs agents roundthe clock and after coming intopower again, they will serve theagents in the same manner”.Highlighting the issues faced byCustoms agents, Qureshi informedthat clearing agents have to faceproblems due to introduction ofnew system after every 3 to 4months and import charges havebeen increased due to this practice.

To a question, Qureshi said thatCustoms agents are facing immensedifNiculties by the division of thePaCSS Collectorate, adding that Cus-toms Department should initiatetraining sessions for Customs ofNi-cials.“We have tried our level best toeducate Customs agents regardinguse of every new system introducedby Customs Department”, he added.Sagheer Qureshi said that allthree terminals are facing scarcity ofexamination staff.�

As many as 26 Data ControllingAssistants (DCAs), who have beenworking in the Computer Bureau

Department in Customs House for thelast many years, are still waiting for theirpromotions instead of they have filedcontempt of court petition in FederalTribunal Service (FTS), Islamabadagainst the authorities concerned for notpromoting them.One of the DCAs in Custom House toldCustoms Today that Khalid Muneeradvocate has filed a contempt petitionon the behalf of 26 DCAs.He said that the case was already inpending for the last several months andin the last hearing, the FTS had orderedthe authorities concerned to decide thematter in 4 months, but despite passingmore than the stipulated time, theCustom Department authorities werestill turning a deaf ear to the orders. Heasserted that this time the decisionwould be in the favour of DCAs.Around 26 DCAs, who have beenworking as Data Control Assistants forthe last 30 years in the office of the ChiefCoordinator, Computerisation andProgramming Department in CustomHouse Karachi, are waiting forupgradation of their posts from BPS-10to BPS-16.The DCAs, while talking to CustomsToday, expressed deep anxiety over thenon-compliance of the orders issued bythe FST on Jan 1, 2013. The DCAs toldthis scribe that they had submitted thecase in 2010 and later on, the FSTproceeded their cases in the 2012 andthen issued its detailed judgement onthe beginning of 2013, in which thedepartment was ordered to upgrade thepost of the Data Control Assistants (BPS-10) to Data Processing Assistants(BPS-16).The DCA further said that they had beenrecruited in 1979, 1982 and 1986 in theComputer Bureau Department ofCustom House. However, those whowere appointed later have beenpromoted in BPS-14 and then BPS-16 onbasis of ‘nepotism’.“We all are experienced, educatedand meet the criteria of promotion,but the authorities concerned do notpay any heed to our issues”, hemaintained. —CT Report

Karachi Chamber of Com-merce & Industry’s PresidentMuhammad Haroon Agar hasemphasized that industrializationand enhancing exports is the im-perative solution to uplift theeconomy.For the larger interest of thecountry and its citizens, public andprivate sector harmony and coor-dination is crucial and unavoid-able to strengthen the frail econ-omy. Exchanging views with ChiefExecutive Officer of National In-dustrial Parks Development &Management Company, Govt. ofPakistan Mohsin Syed, he statedthat seven industrial zones inKarachi lack infrastructural facili-ties of proper roads, railway link-age and other basic amenities likeenergy, gas, water etc.The industrial policy frame-work should focus on improvingindustrial competitiveness, espe-cially with regard to industrial en-

terprises.Chief Executive Officer of Na-tional Industrial Parks Develop-ment & Management CompanyMohsin Syed stated that NationalIndustrial Parks Development &Management Company (NIP) wasoperating under the ambit of theMinistry of Production, Govern-ment of Pakistan.NIP is a public-private partner-ship established to develop focusedindustrial growth in Pakistan bydeveloping world-class industrialparks all over the country.He apprised that NIP aims tosupport rapid industrialization inthe country by establishing newindustrial parks and take neces-sary steps in attracting industri-alists for setting up their busi-nesses in the industrial parks.He invited the President KCCIto compose a delegation to visitthe Korangi Creek and Bin QasimIndustrial Park. �

DG I&I asks officials to remainvigilant against tax evasionKARACHICuSTOmS TODAY RepORTwww.customstoday.com

Customs Agents Alliance will win polls unopposed: SagheerKARACHICuSTOmS TODAY RepORTwww.customstoday.com

DCAs waiting forpromotionsdespite FTS orders

Enhancing exports key to uplift economy: AgarKARACHICuSTOmS TODAY RepORTwww.customstoday.com

FBR has finalised process torationalise the SROs regime asper the IMF conditions on new

loan programme, and will announceit by the end of 2013. The exemptionsand concessions will be rationalisedand such facilities will be given toonly export-oriented industries. Theexport-oriented sectors will befacilitated with these servicesbecause the manufacturing activitieshave already been disturbed owing tothe power crisis. —CT Report

CARTOONSSPECIAL 11www.customstoday.comSEPTEMBER 17 - SEPTEMBER 23, 2013

Anti smuggling wing confiscates 512 computer LCDsLAHORE: Lahore Model Customs Collectorate anti-smuggling wing seized at least 512 non-duty paidComputer LCDs at Faizpur Interchange. Official source said that a team of anti-smuggling wing on a tip-off raided aMazda truck and confiscated 512 computer LCDs worth Rs 25 lakhmarket value. Source saidthat LCDs were being smuggled from Peshawar to a Lahore market. According to source, a case underCustoms Act has been registered against the responsible.

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

The Directorate of CustomsIntelligence & Investiga-tion (I&I) Karachi is fullyfocused to bring to an end the ris-ing trend of smuggling and tothwart themenaceof duty evasionthroughmis-declaration.This was stated by DirectorCustoms Intelligence & Investiga-tion (I&I), Karachi Dr ManzoorHussain Memon during an exclu-sive interview with Customs To-day at his ofNice.Sharing his views, Memon saidthat the Customs Intelligence iscompletely determined to mini-mize the problem of smugglingand for this purpose the depart-ment is keeping a vigilant eye ontransportation of imported goodsat the terminals.“Efforts are under way to de-tect the cases of evading tax levywith the help of strict surveillanceof Intelligence ofNicials and theirnetworks at different ports andterminals”, he added.Director Customs I&I furthersaid that the department is also

keeping a watchful eye on moneylaundering cases. Recently, thede-partment conducted 3 massivecrackdowns in which 3 cases ofunder-invoicingwere detected in-cluding Rs 260million of PakistanTelecommunication Limited(PTCL), 32 containers of fake GDsheld at Port Qasim Container Ter-minal and 3 containers of miscel-laneous items held at Pakistan In-ternational Container Terminal(PICT).In answer to a query, Memoninformed that Federal Board ofRevenue (FBR) andCustomsServ-icewould evolve an effective strat-egy to curb smuggling and under-invoicing cases. “Ourmission is tostop evading tax levy and elimi-nate smuggling through concertedefforts”, Memon added.Elaborating, Mr ManzoorMemon said, “Wewould not allowimporters to conduct any illegalactivity including mis-declarationof goods and evasion of duty withpatronization of CustomsofNicials.Customs ofNicials would also bepunished if they are found in-volved in any corrupt practice.”Memonsuggested thatCus-toms ofNicials should remaindevoted to their duties andavoid involving them-selves in any illegal activ-

ity. “We must introduce a culturewhere corrupt Customs ofNicialsshould also be arrested andbrought to book”, Memon added.Referring to a recent case inwhich an importer through mis-declaration of GDs tried to evadearound Rs 84 lakh of tax levy,Memonsaid that such things couldnot be accomplished without theconnivance of Customs ofNicials.Commenting on the recent devel-opment in that particular case, Di-rector Customs I&I said that thedepartmentwill investigate theACconcernedand if he is foundguilty,theDirectoratewillwrite a letter toFBR for awardinghimduepunish-ment. “Through such actions, wecan discourage the increasingtrendof corruption inCustomsDe-partment”, Director I&I asserted.Highlighting the performanceof Customs Intelligence Depart-ment, Memon informed that thedepartment recently arrested a‘culprit’ after conducting a raid ona godown, where under-invoicedimported goods were kept.“The Customs Intelligence hasrecovered goods worth Rs5 mil-lion from the godown and investi-gation in this regard is underway”,he informed. Director Customs In-telligence and Investigation, Man-zoor Hussain Memon said thatChairman FBR Tariq Bajwa andMember CustomsNisarMuham-

madKhanhave issued clear direc-tives to improve the efNiciency andworking of the department.“In the light of the directives ofChairman FBR and Member Cus-toms, theCustoms Intelligence andInvestigation Department is de-termined to improve its working.Recent raids are an open proof ofthe outstanding performance ofCustoms Intelligence”, Memonadded.�

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The department is also keeping a close eye on money launderingcases. Recently, the department conducted 3 massivecrackdowns in which 3 cases of under-invoicing were detectedincluding Rs 260 million of PTCL, 32 containers of fake GDs heldat Port Qasim Container Terminal and 3 containers ofmiscellaneous items held at Pakistan International ContainerTerminal (PICT), says Dr manzoor Hussain memon

KARACHISOHAIL RAB KHANwww.customstoday.com

12 www.customstoday.comSEPTEMBER 17 - SEPTEMBER 23, 2013

Dastgir given additional charge of Commerce ministerISLAMABAD: PrivatisationMinister Engineer KhurramDastgir Khan has assumed the additional charge of Min-istry of Commerce and Textile, according to the notification issued by Cabinet Division. Khurram Dastgir under-stands theproblemsofMinistry ofCommerce and its attacheddepartments ashehasworkedasChairmanStandingCommittee of Commerce during the tenure of Pakistan People’s Party.