KARACHI: Customs Preventive Karachi has blocked the NTN identity of M/s Pakistan International Airline (PIA) after the national flag carrier failed to meet its obligations despite lapse of the deadline.

Additional Collector AFU Tahir Qureshi on the recommendations of Collector Preventive Tariq Huda blocked the NTN of M/s PIA and now, M/s PIA cannot get its imports processed and released.

Model Customs Collectorate of Preventive had served ‘final notice’ on M/s Pakistan International Airline (PIA) for clearance of dues pertaining to wet leased six aircraft, as the post-dated cheques submitted by the Airline were dishonored.

These six aircraft were imported by PIA and October-November 2014 against wet lease agreements. The same were released against undertaking furnished by M/s PIA without payment of duty and taxes subject to the condition that leviable duty and taxes will be paid within three months.

M/s PIA furnished four post-dated cheques amounting to Rs617.167 million out of which an amount of Rs311.261 million has been encashed whereas two cheques amounting to Rs305.906 in total were dishonored and returned back by the concerned bank.

Customs authorities had advised the national flag carrier to forward pay order of Rs554.333 million, which is recoverable from M/s PIA on account of taxes on the declared wet lease value.

MCC Preventive had warned M/s PIA that failing in making the payment by August 11, 2015 would attract action under the relevant provisions of law.

Since the payment was received, PIA’s NTN has been blocked in the first phase and further action such as lodging of FIR for dishonored cheques and attachment of bank accounts may also be taken.

PIA and many other institutions such as Railways, Pakistan Steel etc., in a planned manner, have been destroyed. Some politicians and bureaucrats working on allegedly foreign agenda made gains for themselves on cost of national institutions.

Over decades, the goodwill of these reputable institutions was tarnished and local media played a major role in propagating the exaggerated negative aspects instead of promoting positives.

However, the military leadership as well as PML-N government are committed to fish out the country of these testing times, which is evident from the government’s internal and foreign policies.

Law & order situation of the country has been a cause of concerns for the last many years; but now the military leadership along with elected government have made remarkable progress in this direction and terrorism as well as crime have been limited to major extent.

KARACHI: Director General of Customs Valuation, Samaira Nazir Khan has rejected the revision petition of three importers of unbleached brown Kraft liner board. They sought downward revision in the customs values of the goods.

According to details, M/s Tabassum Khurshid & Co., M/s Khurshid Sons and M/s Graduate Timber Works approached the Directorate General that the values of unbleached brown Kraft liner board are still at higher side and international prices are low.

The importers submitted that on the basis of last three-month data, the values were around $560-$570/MT compared with $585/MT as notified vide Valuation Ruling 721/2015.

Principal Appraiser Safdar Abbas representing Directorate of Customs Valuation Karachi submitted that while issuing the Valuation Ruling No721/2015, an intensive exercise for determining the fair and normal values of bleached/un-bleached Kraft Liner and Sack Kraft Paper of Poland and other origins were determined.

Whereas these values have backing and strength of physical import evidences and market survey report, besides these values were discussed with representative of trade bodies. Paper Association has endorsed these values when discussed with them in the meeting.

After hearing both sides and deliberations in detail, DG Customs Valuation rejected the revision petition accordingly.

KARACHI: Directorate of Post Clearance Audit has detected evasion of customs duty and other taxes by M/s Fatima Fertilizer Company Limited to the tune of Rs29.305 million on account of availing inadmissible benefit of SRO 575(I)/2006.

The Directorate headed by Gul Rehman has prepared three contraventions and forwarded the same for adjudication proceedings.

On the directives of Director Gul Rehman, the Post Clearance Audit Karachi conducted scrutiny of import data of M/s Fatima Fertilizer Company, which revealed that the company imported several consignments of steel pipes, multi-core electricity cables, welding wires, machinery parts and spares etc and got them cleared availing inadmissible exemption of Customs Duty as in excess of 5.0 percent under SRO 575(I)/2006 while the imported goods did not fall within the ambit of plant, machinery, equipment spares & accessories required for manufacture or production of any good.

The imported goods were not covered under the concessionary SRO and were subject to statutory rate of Customs duty, sales tax and withholding tax.

Thus an amount of Rs29.305 million has been short-paid/evaded by M/s Fatima Fertilizer company.

KARACHI: Large scale transfers and postings in Pakistan Customs Service (PCS) have been finalized and are likely to be notified today, reliable sources told Customnews.pk.

According to details, a mega reshuffle is due in Pakistan Customs and officers ranging Grade-17 to Grade-20 are going to be moved to different offices.

Sources said that Chairman Federal Board of Revenue (FBR) and Member Customs are leaving for USA on August 17, 2015 on official business. Therefore, the transfers and postings will be notified before their departure.

Sources said that this is highly likely that the notifications in this regard would be issued today i.e. August 13, 2015.

KARACHI: The Federal Board of Revenue (FBR) has notified large scale re-shuffling in Pakistan Customs Service; a number of BS-19 and BS-20 officers have been transferred to different positions.

According to details, BS-20 officers include Manzoor Hussain Memon has been moved to the office of Director Directorate General of Customs Valuation Karachi from the post of Collector Model Customs Collectorate of Appraisement (East) Karachi; Dr. Jawwad Owais Agha  moved from Collector, Model Customs Collectorate, Gwadar to Collector Model Customs Collectorate of Appraisement (West) Karachi. The officer will also look after the charge of Director RMS Karachi.

Dr. Naeem Ajaz Qureshi transferred from the office of Director Directorate General of Post Clearance Audit, Islamabad to the post of Director Directorate of Internal Audit (Customs) Islamabad.

Raja Tahir Majeed will assume the post of Collector Collectorate of Customs (Adjudication), Faisalabad on return from NMC.

Saud lmran Ahmad transferred from the post of Director Post Clearance Audit Lahore to Director Intelligence & Investigation FBR Lahore. The officer will also look after the charge of Director Directorate of Intelligence & Investigation-FBR, Faisalabad.

Muhammad Saleem is moved from the office of Collector, Model Customs Collectorate of Appraisement (West) Karachi to the office of Director Directorate General of Intelligence & Investigation FBR Islamabad.

Wasif Ali Memon will assume the post of Collector Collectorate of Customs (Adjudication-I), Karachi on return from NMC.

Dr. Fareed lqbal Qureshi is moved from the post of Collector, Collectorate of Customs (Adjudication-I). Karachi  to the office of Director WeBOC Karachi.

Abdul Majid Yousafani is moved from the office of Director WeBOC Karachi to Collector MCC Appraisement East.

Dr. Saifuddin Junejo is transferred from the post of Collector Adjudiction-I Karachi to Collector MCC Exports, Karachi.

Muhammad Ali Raza Hanjra  moved from Director Directorate General of Internal Audit (Customs) Islamabad to Collector Collectorate of Customs (Adjudication) Islamabad.

Ashhad Jawwad moved from Additional Director (BS-20) Directorate General of Post Clearance Audit Islamabad to the post Director, Directorate General of Post Clearance Audit Islamabad.

Zafar Akhtar moved from Additional Collector (BS-20) Collectorate of Customs (Adjudication-I) Karachi to the post of Collector Collectorate of Customs (Adjudication) Lahore.

Ch. Muhammad Javed  Additional Director (BS-20) Directorate General of Transit Trade Karachi is transferred to the post of Collector Collectorate of Customs (Adjudication-II) Karachi.

lrfan-ur-Rehman Khan  Secretary (BS-20) Federal Board of Revenue (Hq) Islamabad has been posted as Director Directorate General of Intelligence & Investigation FBR Quetta. The officer will also look after the charge of Director Directorate of Intelligence & Investigation-FBR. Gwadar.

Ms. Shazia lkram  Additional Director (BS-20) Directorate General of Customs Valuation Karachi has been posted as Director Directorate General of Training & Research (Customs) Karachi.

Saeed Akram Additional Collector (BS-20) Model Customs Collectorate of Port Muhammad Bin Qasim Karachi is posted as Collector Model Customs Collectorate Gwadar.

Muhammad lqbal Bhawana of BS-19 has been moved from the office of Director (OPS) Directorate of Intelligence & Investigation FBR Quetta to Chief (OPS) Federal Board of Revenue (Hq) Islamabad.

Ahmad Rauf of BS-19 is transferred from the office of Chief (OPS) Federal Board of Revenue (Hq) Islamabad to the office of Director Directorate of Post Clearance Audit Lahore.

KARACHI: The Federal Board of Revenue (FBR) has notified transfers and postings of BS-21 and BS-20 officers of Inland Revenue Service (IRS).

The BS-21 officers moved include Dr. Ikram Ghani moved from the office of Chief Commissioner Inland Revenue Regional Tax Office, Peshawar to the office of Member FBR HQ Islamabad; Ms. Tasneem Rehman, Chief Commissioner, (Inland Revenue) Regional Tax Office, Faisalabad will hold the additional charge of the post of CCIR, RTO, Sargodha, in addition to her own duties till the posting of a regular incumbent; Shahid Zaman has been moved from the office of Chief Commissioner, Regional Tax Office, Sargodha to Chief Commissioner Inland Revenue Regional Tax Office, Peshawar.

Dr. Manzoor Ahmad who was promoted to BS-21 is transferred and posted against the up-graded post of Chief Commissioner-IR, RTO, Sukkur.

Khawaja Adnan Zahir of BS-20 has been transferred from the post of Commissioner, (Zone-III) Large Taxpayers Unit, Lahore to Chief Commissioner Inland Revenue Regional Tax Office, Bahawalpur; Syed Imran Raza Kazmi of BS-21 is moved from the post of Chief Commissioner, Regional Tax Office, Bahawalpur to Chief Commissioner Inland Revenue Regional Tax Office, Sialkot.

KARACHI: Secretary Aviation Shujaat Azeem has contacted Chairman Federal Board of Revenue (FBR) for de-blocking of NTN of M/s PIA so that the imports by national flag carrier could be processed as two Airbus 330 aircraft imported on wet lease from Malaysia were awaiting clearance.

After the discussions between the Secretary Aviation and Chairman FBR, the NTN identity of M/s PIA has been restored temporary.

These two Airbus aircraft have been acquired by M/s PIA for two months to facilitate smooth Hajj operation. These planes have been cleared on zero duty as Finance Act 2015 through amendments in 5^th and 6^th schedule has exempted aviation imports from duty and taxes.

Customs Preventive Karachi had blocked the NTN identity of M/s Pakistan International Airline (PIA) after the national flag carrier failed to meet its obligations despite lapse of the deadline.

Model Customs Collectorate of Preventive had earlier served ‘final notice’ on M/s Pakistan International Airline (PIA) for clearance of dues pertaining to wet leased six aircraft, as the post-dated cheques submitted by the Airline were dishonored.

It may be mentioned here that M/s PIA is bearing severe financial crisis for many years. A senior officer said that corruption, political involvement and nepotism are the biggest reasons behind these crises.

The source said that privatization of M/s PIA was the need of the hour, but several quarters were trying to turn this deal into their own benefits instead of the national airline.

Sources said that impartial investigations into the affairs pertaining to spares and parts procurement contracts, supplies procurement contracts and engineering contracts would reveal surprising tales of corruption.

There was a tome tourists from all over the world used to come to Pakistan as well as businessmen from Europe and US were frequent flyers; aviation as well as hospitality industry was flourishing. But, the security issues and deteriorating law & order situation- the outcome of bad policies – have quite adversely impacted all industries and services sectors.

However, the military leadership as well as PML-N government are committed to fish out the country of these testing times, which is evident from the government’s internal and foreign policies.

Law & order situation of the country has been a cause of concerns for the last many years; but now the military leadership along with elected government have made remarkable progress in this direction and terrorism as well as crime have been limited to major extent.

KARACHI: The Directorate of Transit Trade has seized a huge quantity of banned and undeclared goods, which were being smuggled within Pakistan through transit trade.

According to details, information was received that a huge quantity of undeclared items including banned items (banned under Transit Trade SRO 151/2004) would be smuggled within Pakistan through Transit Trade consequently the Director of Transit Trade Karachi deputed Shoaib Raza Deputy Director Transit Trade East Wharf for detailed intrusive inspection of the consignment imported from China.

The Goods declaration (GD) declared the description and quantity as Padlock 1105 cartons, Bulb 80 cartons, Nail cutter 30 cartons, Drawer lock 60 cartons, Electric breaker 100 cartons, Scissors 10 cartons, Hand tools 25 cartons, Emery Cloth 100 cartons, Iron 150 cartons, Solar Fans 40 cartons and Pencils 20 cartons.

The consignment was examined it was found to be rifle barrel forearm, rifle telescope, rifle scope, rifle scope mount, battery terminals, lead acid batteries, sterile surgical structure and solar power charge controllers. The undeclared goods have been seized and further proceedings are underway.

Sources said that investigations would likely focus transportation of goods that may be used in terrorism activities in Afghanistan as well as Pakistan.

It may be mentioned here that Afghanistan has been blaming Pakistan for terrorist activities in Afghanistan and its is likely that some other forces are bent upon impacting relations between the two countries.

KARACHI: The Independence Day celebrations were held at old Customs House Karachi and MCC Port Qasim on August 14, 2015.

Tariq Huda Collector Preventive performed the flag hoisting ceremony at 09:00 am in the morning, which was followed by a parade by the depots of Pakistan Customs.

Collectors Mohammad Saleem,  Dr. Fareed Iqbal, Saifuddin Junejo, Javed Chaudry, Director Wajid Ali, Additional Collectors Dr. Iftikhar Ahmed, Irfan Javed, Nayyar Shafiq, Mohammad Tahir, Feroz  Alam Junejo, Azhar Merchant and a number of officers and officials were present on the occasion.

Tariq Huda congratulated the Customs officers and officials as well as the entire nation and resolved to continue their efforts in the development and prosperity of the country.

The Pakistan Navy band played national anthem.

Similarly celebrations were held at Port Qasim. Additional Collector Shafia Latki performed the flag hoisting while Assistant Collector Rehan Akram, Deputy Collectors Wajid Zaman, Fazli Shakoor, Falik Sher, Assistant Collectors Imran Lillah, ShAhid Abbasi, Abdul Qudoss, Sajjad Rizwi, Hina Full and several other officers and officials were also present.

Dry ports throughout the country including Lahore, Peshawar etc were decorated to commemorate this auspicious occasion.

Article 4

With the beginning of the 21^st century, expansion in the horizon of globalization and trade liberation has transposed itself into a huge volume of trade cargo moving across the borders of the country. As requisites of trade potential, assurance of encouraging environment for safe and reliable supply chains across the countries and/or regions taken together with effective controls and enforcement measures; and harmonization of business procedures are key challenges faced by Pakistan Customs.

Luckily, Customs has developed an indigenous system [i.e. Web based One Customs (WeBOC)] which is paperless, web enabled, and an end-to-end integrated automated system to serve as a modern, efficient, effective and corruption free Customs administration. Gradual development and enhancement of WeBOC is aimed at making the system compliant of trade facilitation agreements, WCO data model and Revised Kyoto Convention with regards to simplification and harmonization of procedures. The vision of the Directorate of Reforms and Automation (Customs) is focused on endeavoring to eliminate divergence between Customs procedures and practices that can hamper international trade, international exchanges and the application of Customs procedures/ practices in a predictable, consistent and transparent manner.

Following the success at sea, the footprints of WeBOC has entered into the air industry. Recently, an air cargo import manifestation module has been deployed smoothly in WeBOC w.e.f. 04^th January 2015. Separate clearance lanes for ICG, courier, human remains, unaccompanied baggage, mail, dangerous goods and general import have been introduced in the system.  Air manifestation classifies into home consumption (HC), Into Bond (IB), Transshipment (TP), Inter-port movement (IP) and transit. In an effort to level the roadmap for secure and safe supply chain, Customs is working with external organizations to establish Electronic Data Interchange (EDI) with airlines. For the said purpose, the Directorate has signed a Memorandum of Understanding (MoU) on technical cooperation with International Air Transport Association (IATA) on 17^th August 2015 at Karachi. The scope of this MoU is to cooperate with each other in the implementation of –

IATA’s Cargo-XML standards in a new automated manifestation framework for the airlines operating in Pakistan, which is WCO compliant.

IATA’s Advance Passenger Information exchange standards, based on UN/EDIFACT, WCO/ICAO compliant.

The objective is to implement standardized simple set of trade-related data that can make it easier for legitimate traders to meet legal, regulatory and administrative requirements by reducing the amount of time, effort and money needed to gather, collate and submit data. According to a USAID study, the World Bank’s Cost of Doing Business Index has ranked Pakistan at the 91^st position out of 189 countries in terms of trade across borders¹. In comparison with Central Asian Republics like Singapore, Hong Kong, South Korea, Pakistan’s standing is relatively low. At present, sea terminals (KICT, PICT and QICT), on-the-dock terminals (KPT) and off dock terminals (NLC, Pak Shaheen, AICT and BOML) are EDI based stations under WeBOC for sea cargo clearance. Contrary to sea EDI standards, IATA’s standards are upgraded with high data quality, integrity and more character space. The digital supporting documents such as invoice, packing list and certificate of origin (CoO) are also embedded in the e-manifestation package. Due to multimodal and cross border features of cargo XML standards, Customs authorities like Mexico, Paraguay, Argentina, Abu Dhabi, Qatar, Bahrain, Canada and USA Customs have moved forward for adoption of these standards.

For transition to EDI standards, IATA’s assistance, as per the MoU, will include a review of the technical documentation, a provision of technical guidance, resolution of technical issues, rendering assistance in the testing phase with regards to the development of EDI software until its smooth roll out.

The terms of this MOU are entirely voluntary and will not be deemed to constitute or create any legal binding or enforceable obligations. However, each Party’s rights and interests are reserved with respect to national security, national and public interest or public order, protection of intellectual property rights and confidentiality and secrecy of documents, information and data, to undertake appropriate steps or consultation to ensure that its rights and interests are protected and safeguarded.

IATA has already extended its assistance to Pakistan Customs by sharing the Cargo XML manual and toolkit. In light of the toolkit, the Directorate has developed referential documents and Requirement Specification Documents (RSD) on Cargo XML and API in automated air cargo manifestation frameworks. The same has been duly vetted by IATA’s head office, Geneva. Numerous meetings via video/audio conferencing with Mr. Tahir Syed, (Manager Cargo Electronic Messages-IATA) and Ms. Nathalie Herbelles (Assistant Director, IATA), in the head office, Geneva have been arranged. Out of 22 IATA’s member airlines operating into Pakistan, the Directorate nominated M/s Emirates and M/s PIA for pilot testing of Cargo XML EDI message with Pakistan Customs. After several deliberations with audio conferencing with IATA and the representatives of M/s Emirates, it had been decided that out of 15 components, 5 of the most crucial messages relating to flight manifest message and house manifest messages will be developed and implemented in Phase-I.

The tentative timeline for pilot testing will be planned once software development is completed by the nominated airlines as well as Customs. After successful pilot testing, the rest of the airlines will be brought onboard the same automated manifestation framework for a subsequent roll out of the EDI standards by the end of 2015. Parallel, implementation of API comprising of exchange of passenger data elements by airlines to Customs prior to flight departure or arrival, being visualized for “speedy clearance or prevention to board” of a passenger, at control points is the next goal to achieve.

The main areas of benefits and importance of IATA’s EDI standards are:

1. Improvement of efficiency, precision, accuracy, security and safety of data/information.
2. Reduction of errors and dwell time.
3. Compliance with regulations and facilitation of advocacy.
4. Facilitation for implementation and adoption of the e-Cargo initiatives such as the electronic Air Waybill (e-AWB).
5. Real time integration and acknowledgement of data enabling less extra physical controls and requirements.
6. Prevention of fraud, illegal migration, suspicious travel patterns of passenger under API.
7. Provision of pre-arrival e-manifestation of cargo and passengers, 4 hours for long haul flights and at wheel-off for short haul flights
8. Easy monitoring and reconciliation of data
9. Threat assessment and management of risk profiling of ports from where cargo/passenger is flowing in Pakistan
10. Alignment with WCO recommendations regarding dematerialization of paper, thus:

• No hard copies will be required if electronic documents have been submitted
• Customs will rely on electronic declarations (automated verification of information)
• Digital supporting documents may be stored in repositories

With the tenacious and proactive approach of the Director, the initiative like implementation of WCO compliant EDI standards, has expressed the pledge and promise, competence and capability of Pakistan Customs to take Pakistan forward towards modernization.

( Nazia Saleem Bhinder )                                                                                                                                                                                                                                                            Deputy Director                                                                                                                                                                                                                                                         Directorate of Reforms and Automation ( Customs ), Karachi.

Article 3

The implementation of Cargo XML standards by Customs and IATA, marks a golden milestone in the aviation industry of Pakistan as it will bring Pakistan at par with the global cargo industry standards.  Trading of commodities exist since the beginning of mankind, and has progressed from the boundaries of two villages to a global scale now where aviation plays a key role in the transport of the cargo. The much needed technological advantage in the aviation will put Pakistan at the forefront of aviation industry within the region and beyond.

To support the growth of the aviation industry across Pakistan, Gerry’s dnata has invested over USD 16.5 million across Pakistan during last two years towards cargo warehouses, new airports development, infrastructure projects, and state of the art technological advancements. The partnership with Pakistan Customs, IATA and FBR will definitely enhance the FDI coming into Pakistan and we remain committed to Pakistan Market.

My sincere wishes to Pakistan Customs for taking this initiative of technological advancement in aviation and I strongly believe that with this Pakistan’s Ease of doing business Index will increase, I will make sure that these improvements are registered in World Bank’s report for 2016, and we will definitely attract more foreign investment in Pakistan, further catalyzing country’s growth curve during the coming years.

Long Live Pakistan,

     Syed Haris Raza                                                                                                                                                                                                                                                               Vice President Pakistan                                                                                                                                                                                                                                                                  Gerry’s Dnata

Article 2

Technical cooperation between Pakistan Customs and IATA is based on the sound principles of trade facilitation enshrined in the WTO’s Bali Agreement to which Pakistan is a party. Standardization of Customs procedures, backed by automation is the foundation on which the edifice of trade facilitation rests. If these two things are done right we can unleash the trade potential of the country by ushering in the dynamism in Customs controls which, taken together with other variables, guarantee safe, reliable and demand-oriented supply chains across countries, regions, or the globe.

Pakistan Customs has come a long way in developing an indigenous, community-based a customs clearance platform, country-wide, and cross-border in sweep and scope. At present, the entire spectrum of marine imports and exports and allied Customs functions are nationally administered under the Web-based One Customs (WeBOC) system. The system had hitherto provided for management of air cargo clearances, but spans the over-arching administrative network, which would connect airlines, the Ground-handling Agents (GHAs)/shed-operators, Customs brokers, and various departments functioning at the airports. Air Integrated Regulatory Framework, or “AIR”, is the new Customs paradigm for air cargo management, inbound, outbound, and in-transit.

AIR is a composite of twelve modules, covering domestic aircraft registration, airline manifestation, on-ground cargo inventory management, in-country transshipments, foreign transits, and horizontal integration of Customs and allied agencies for speedy cargo clearances. AIR marks a sea-change in the process by establishing parity between Pakistan Customs’ sea and air operating systems. It connects Customs with airlines through electronic data interchange in the first go, with air off-dock Customs stations, and GHAs/shed-operators in tandem over the stipulated period of time.

Pakistan Customs has entered into a technical alliance with IATA for the implementation of Cargo XML standards v.2015, globally launched by IATA for implementation w.e.f. 1^st January 2015. These are the new protocols on cargo manifestation by airlines to Customs, developed in a highly versatile computer language, capable of integration with any Customs operating system. This new framework also provides for electronic transfer of commercial transaction data, as embodied in commercial invoices, packing list, certificate of origin etc, from customer-to-airline-to-Customs via the two-way secure data stream between an airline and Customs. This data flow would enable Customs to pivot its risk management system in the air cargo supply chain to pre-clear goods before the landing of the aircraft, subject to the zero risk status of the goods in the system, and filing of an advance declaration by the importer.

Pakistan Customs has finalized a Memorandum of Understanding (MoU) on a technical collaboration with IATA to launch the new XML-based cargo manifestation system by January 2016. Pakistan Customs is launching the pilot with two airlines to start with, viz, PIA and Emirates. Thereafter, it would be progressively prescribed for all other air carriers.

Under the Shed Inventory Management System (SIMS), the air cargo sheds have been enabled to confirm cargo arrivals electronically, with specific short/excess-shipment, short/excess-landing reporting channels, and in-built auto declarations to Customs for re-export authorizations, programmatically triggered under the circumstances, without obliging an airline or a shed operator to do so manually. SIMS would enable the shed operators to report cargo position in the shed, or any inter-shed movement afterwards, to enable Customs to locate an import or export consignment expeditiously for any operational purpose.

AIR brings a new dimension to inter-airport transshipment of air cargo by enabling multiple airline connectivity, or ‘inter-lining’ in IATA’s parlance. This system would mean initial air cargo haul into the country by Airline ‘A’, for instance, and its transshipment from the airport of first arrival to the airport of destination within the country by Airline ‘B’ on the basis of the original manifest, without any in-country transshipment filing. AIR seeks to deepen the scope and possibilities of air-cargo transshipment by allowing foreign-domestic or national-domestic airline connectivity. An air-to-sea and air-overland connectivity has also been provided for under the system. These provisions will deepen the international supply chain into the domestic markets.

International transits under AIR will be processed in the manner akin to the above, with the difference that freight-on-board (FROB) will be exempt from declaration to Customs on arrival at any airport in Pakistan, while transit freight released by Customs against airline manifestation to an air cargo shed, or an air off-dock location, will be subject to same-state goods exports filing. The system will process such consignments on the basis of their original manifestation. This would clearly enable international transit handling of air cargo at national airports, including consolidation and re-routing thereof, at on- and off-airport Customs locations, thus creating new business potential and possibilities.

In the case of transits meant for Afghanistan, flight departure confirmation from any airport in Pakistan will amount to automatic mate-receipt filing by an airline, and trigger EDI messaging from Pakistan Customs to Afghanistan Customs, enabling the latter to mark the same as impending arrivals in their system. The cargo receipt in Afghanistan will prompt reverse messaging to Pakistan Customs as confirmation of completion of transit. This is being done through a bilateral electronic data interchange between Pakistan and Afghanistan Customs, an important administrative tool for real-time reporting on securing traffic-in-transit between airports of the two countries.

AIR provides exclusive, fast processing lanes to perishable or sensitive cargo, including animals, hazardous goods, courier consignments, human remains etc. This mechanism will result in shorter Customs processing times for all the afore-mentioned cargo types, and bring unprecedented speed in their delivery to an importer, much of a necessity in such cases. This system is commonly called ‘immediate clearance’.

The most noteworthy feature of AIR would be the virtual co-location of administratively adjacent authorities at national airports towards establishing an integrated cargo clearance framework. All such authorities, such as the Civil Aviation Authority and FIA, have been provided two-way connectivity under AIR, for purposes as diverse as aircraft landing or departure confirmation, to online clearance of human remains, with many automated consequential protocols for optimum clearance speed.

To reiterate, trade facilitation is Customs controls put into motion by rule-based automation. AIR would not only be a key instrument for Pakistan Customs in providing speedy and secure air cargo clearances to the trade, but would also serve as a medium for implementing many of the provisions and postulates of WTO’s Bali Agreement on Trade Facilitation.

 S.M. Tariq Huda                                                                                                                                                                                                                                                                Collector of Customs                                                                                                                                                                                                                                                               Model Customs Collectorate ( Preventive )                                                                                                                                                                                                                         Pakistan Customs

Article 1

In an effort to create a secure and safe supply chain environment, Pakistan Customs is working closely with the international organizations such as World Customs Organization (WCO) and the International Air Transport Association (IATA). As a result of this cooperation, Pakistan Customs and IATA have agreed to sign a Memorandum of Understanding (MoU) to collaborate and facilitate the implementation of advance passenger and cargo manifest initiatives in Pakistan.

The IATA Cargo-XML messaging standard has emerged as the preferred standard for the electronic exchange of information between airlines and air cargo stakeholders including shippers, freight forwarders, ground-handling agents and regulators, as well as Customs and Security agencies. This standard is multimodal, cross-border, based on the UN Centre for Trade Facilitation and e-Business (UN/CEFACT) and aligned with WCO standards.

The implementation of advance Cargo Information aims to:

• Facilitate cargo business processes
• Expedite the expansion of e-cargo in general and e-AWB in particular
• Fulfill customs requirements for Advance Cargo Information (ACI) filing
• Comply with security regulations like e-Consignment Security Declaration (e-CSD)

Keeping with the WCO Standards to Secure and Facilitate Global Trade (SAFE) Framework, a number of Customs authorities are considering adopting IATA Cargo-XML message standards; Pakistan Customs will be amongst the first to go live, as a result of the strong cooperation between the Pakistan Customs, IATA and airlines operating in Pakistan. Effective December 2015, Pakistan Customs will start pilot testing to implement the advance information on cargo movement using the IATA Cargo-XML messages. The purpose of the project is to facilitate management of customs operations, real-time risk management and facilitation of the interchange of information amongst the various air cargo Stakeholders that participate in world trade.

The endorsement of IATA standard messages by a national administration confirms the perception increasingly shared among both private and public sectors that the best solution to ensure the security of the international supply chain and to promote trade facilitation is through an harmonized approach which can result from a tight and constant cooperation between industry representatives and government authorities.

                                                                                                                                                                                                                   M. Mustafa Khan                                                                                                                                                                                                                                                               IATA Country Manager Pakistan

KARACHI: Pakistan Customs has signed a Memorandum of Understanding with International Air Transport Association (IATA) for the development of Cargo XML and Advance Passenger Information Systems.

The ceremony was held at a local hotel. Nasir Masroor Ahmed, Director General, Directorate General of Reforms and Automation (Customs) FBR, was the chief guest. Tariq Huda, Collector of Customs Preventive welcomed the audience to the event. He emphasized the commitment of Pakistan Customs to work for the betterment of the country and the community.

Huda added that development of Cargo XML facility will reduce the dwell time of the cargo imported through air. This in turn will reduce the cost of doing business. The Advance Passenger Information system will provide the information of incoming passengers before their arrival. This would forestall risks and enable Pakistan Customs to provide better passenger facilitation to incoming passengers.

Abdul Majid Yousfani, Director, Directorate General of Reforms and Automation, Pakistan Customs, elaborated the technical aspects of both Cargo XML and Advance Passenger Information Systems. He mentioned the Pilot testing of this program will commence once the development of the Software is completed. The complete Roll out of the EDI Standards is likely to be completed by end of 2015.

Nasir Masroor, the Director General, Directorate General of Reforms and Automation (customs) FBR welcomed the MOU and spoke of future collaborations between Pakistan Customs and IATA. He mentioned that the development of this system is the outcome of Pakistan Customs resolve to Trade facilitation and modernization.

He further informed that Pakistan Customs is also working closely with China Customs and Afghan Customs for the development of Electronic Data Interface. This will help generate more revenue and will also curb smuggling and under invoicing.

Nathalie Herbelles, signed the MOU on behalf of the IATA. She highlighted the details of the Cargo XML and API systems. She congratulated Pakistan Customs for implementing IATA Cargo XML and API standards.

The event was well attended by Commander Karachi Vice Admiral Arifullah Hussaini, Commissioner Karachi Shoaib Siddiqi, CEO TDAP S.M Muneer, CEO New World Concepts Yasmin Hyder, leading diplomats, business personalities, Customs Additional Collector Saadia Sheeraz, Deputy Directors Abid Hussain Hakro, Naveed Memon, Qasim Khokar, Nazia Saleem and senior management of Pakistan.

Director Dr. Farid Iqbal Qureshi, Director PCA Gul Rehman, Director Intelligence & Investigation Yaqoob mako, Collector Exports Saifuddin Junejo, Collector Appeal Dr. Zulfiqar Malik, Additional Collector AFU Tahir Qureshi, Additional Collectors Feroz Alam Junejo were also present among others.

KARACHI: In order to encourage officers joining the mandatory management courses, the Federal Board of Revenue (FBR) has adopted this policy to transfer officers who avoided the management courses.

An official said that a number of officers used to avoid the management courses just to remain stick to their existing ‘lucrative’ postings, which resulted in lapse of promotion vacancy in the group while the promotions of junior officers also delayed.

In a recent instance, FBR has transferred Manzoor Memon from the office of Collector Appraisement East to the post of Director Customs Valuation. Memon was nominated for National Management Course (NMC), which started on August 10, 2015 but he did not join the course. Sources said that policy guidelines in this regard would be issued soon.

Meanwhile, the Establishment Division has notified nominations of BS-19 officers for 18^th Senior Management Course (SMC).

The BS-19 officers of Pakistan Customs Service nominated for the course include Ms Samina Tasleem Zohra, Ms Mehnaz Bhaur, Feroz Alam Junejo, Sadiqullah Khan, Mumtaz Ali Khoso, Mohammad Mohsin Rafiq, Irfan Javed, Syed Asad Raza Rizvi and Ms Qurat-ul-Ain Dogar.

The Bs-19 officers of Inland Revenue nominated for the course include Fakhar-ul-Islam, Farooq Ahmed Khan, Imtiaz Ahmed, Khurshid Ahmed Khan, Ishtiaq Ahmed Khan, Mohammad Jamil Bhatti, Mohammad Khalid Malik, Imran Munir, Maqsood Jehangir, Atif Ali, Manzoor Ali Jokhio, Ahsan Raza Ch., Mohammad Farrukh Majid, Imran Latif Minhas, Qazi Hifz-ur-Rehman and Ms. Irum Sarwar.

The nominated officers may report to NMC, Lahore and NIM, Karachi on August 22, 23, 2015.

KARACHI: As the distribution of assignments was not carried out at MCC Appraisement West, therefore the additional collectors transferred and posted at the Collectorate are sitting idle for the last one month. On the other hand several collectorates and directorates are in need of officers to fill the vacant posts of additional collectors or additional directors.

According to details, Ms. Zeba Bashir Ahmed was transferred at MCC Appraisement West while Dr. Iftikhar Ahmed was posted at the collectorate on his return from management course. Since there are only five postings for additional collectors at MCC Appraisement West, the above mentioned two officers are awaiting assignment of responsibilities.

Moreover, as many as four deputy collectors at the collectorate have also been promoted by the recently held Central Selection Board (CSB), these promotions are likely to be notified on August 19, 2015, which means there will be 11-12 additional collectors against five positions at Appraisement West.

Sources said seven BS-18 officers in the seniority list were not considered for the promotion in BS-19 while around 20 officers have been promoted by CSB and notification in this regard is expect today.

It may be mentioned here that there is no Additional Collector in Directorate of Transit Trade as Javed Chaudry has been promoted and posted as Collector Adjudication.

Yaqoob Mako has become Director Intelligence & Investigation while Irfan Javed will be joining management course, hence there are no additional collectors in MCC Exports Karachi.

Mumtaz Khoso is also joining management course hence the position of additional collector at MCC Exports Port Qasim is getting vacant.

Feroz Alam Junejo is also joining the management course and one position of additional collector in MCC Preventive will be vacant.

Post Clearance Audit (PCA) is also in need of at least two additional directors. Similarly, Saeed Akram has been promoted and become Collector MCC Gwadar and one position of additional collector is vacant at MCC Port Qasim.

It is expected that transfers and postings of Pakistan Customs Service (PCS) officers ranging Grade-17 to Grade-19 will be notified in mid September 2015.

A delegation of 15 senior PCS officers including Member Customs Nisar Mohammad Khan is in USA on official business and they would return on August 30, 2015.

An official said that Chairman FBR would not shuffle Customs bureaucracy without the consultation and input of Member Customs Nisar Mohammad Khan who is well aware of the skills and competencies of officers.

The FBR in consultation with Member Customs has recently notified transfers and postings of senior Customs officers and sources said competent and honest persons in key positions would improve the image and reputation of the institutions as well as the revenue leakage and corruption would be eliminated.

KARACHI: The Directorate of Post Clearance Audit (PCA) has created a demand of Rs17.428 million, which is recoverable from M/s Agro Processors & Atmospheric Gases, as it was evaded through misuse of concessionary SRO.

According to the details, scrutiny / audit of import data revealed that M/s Agro Processors & Atmospheric Gases (Private) Limited imported “RBD PALM OLEIN” through MCC Port Muhammad Bin Qasim imported from Malaysia.

The importers claimed benefit of SRO 450(1)/2001. The imported goods are not covered under the claimed SRO and under the zero rating concessions of income Tax Ordinance 2001.

Therefore, M/s Agro Processors & Atmospheric Gases (Private) Limited, are liable to pay short paid amount which comes to Rs17.428 million.

PCA has directeded the importers to deposit the short levied amount in the national exchequer within 10 days.

Director PCA Karachi Gul Rehman has made the Directorate a vibrant formation and a number of cases involving billions of rupees of revenue have been made.

KARACHI: MCC Port Qasim has blocked the WeBOC user ID of M/s Moorad Shipping Agency as the clearing agent has been found involved in embezzlement of funds deposited by the importers with th connivance of National Bank staff at QICT collection booth.

Assistant Collector Rehan Akram, on the directives of Collector Port Qasim Surayya Ahmed Butt and Additional Collector Shfiq Latki, has blocked the user ID of M/s Moorad Shipping in WeBOC system.

M/s Moorad Shipping mis-used the payment orders of different importers and got cleared the Goods Declarations of other importers instead of importers who actually had deposited funds with the agent for clearance of their consignments.

Due to this mis-appropriation by the clearing agent and bank staff, the actual importers have suffered undue delay in the clearance of their consignments resulting in commercial losses.

An official said that M/s Moorad Shipping was actually cheating the importers adding that a Show Cause Notice had been issued; hearing would be held on September 18, 2015 wherein the future course would be decided.

A complaint filed by M/s ACP Oil Mills noted that they deposited an amount of Rs2.5 million in the bank accounts of M/s Moorad Shipping so that the same could be deposited in the national exchequer and their consignments of palm oil and olien could be cleared. This is the general practice that amounts are deposited in agent’s account which is then transferred to government kitty.

M/s ACP Oil Mills noted that M/s Moorad Shipping was delaying the transfer of subject duty/tax in government depository, which was harming government revenue collection and delaying their consignments.

The agent has violated the duties and responsibilities and obligation to promptly pay to Government when due, all sums received for payment of any duty, tax or other debt or obligation owing to the Government and promptly render account to its client regarding any money received from him for Government.