KARACHI: Directorate of Intelligence & Investigation-FBR, Anti-Smuggling (Customs) raided a dumping place of smuggled HSD oil in North Karachi Industrial Area, Karachi and seized 40,000 liters of Irani HSD oil.

According to Asif Marghoob Siddiqui, Director, Customs Intelligence, an information was received that a person named Imtiyaz Khan, is supplying smuggled Iranian origin HSD oil to different parts of Karachi. The presence of godown in the mid of industrial and public area was endangering lives and properties of people working and residing in the adjacent areas.

The Anti-Smuggling Squad of Customs Intelligence raided the area and discovered underground tanks filled with huge quantity of smuggled Iranian origin HSD oil.

Asif Marghoob Siddiqui, Director Customs Intelligence, underscored that the presence of smuggled oil in that area was not less than a volcano which could have erupted any time and led to large scale deaths of residents living nearby.

Customs Intelligence has sealed the illegal dumping place located in the jurisdiction of New Karachi Industrial Police Station. The Customs Authorities have also seized a vehicle bearing Reg No. TKE-788, fitted with clandestine fuel tanks from the spot transporting 6900 liters of smuggled oil.

Accused Rustam Zaman, driver of vehicle has been arrested after lodging an FIR with special court. The Director of Customs Intelligence informed that a few months ago Customs authorities in association with the District Administration demolished over 70 petrol pumps operating without NOC in different parts of the Karachi. Subsequent to that operation, the smugglers have changed their modus operandi. The illegal traffickers transport smuggled HSD oil in lorries and dump it at tanks located inside residential and industrial areas. The present phenomenon is even more fatal and endangers the lives and properties of the local residents.

This is the first detection and interception of a godown storing inflammable HSD oil inside residential and industrial area. The details of the event is being shared with Commissioner Karachi, CCPO Karachi and high ups of Pakistan Rangers, Sindh through formal correspondence for consolidated action against the heinous crime against humanity.

Asif Marghoob Siddiqui, informed that the operation was conducted under the supervision of Nadeem Ahsan, Additional Director, Customs Intelligence Karachi. The Director also appreciated the efforts of Kaleem Ullah, Assistant Director, Raffat Hussain, Superintendent, Haji Aslam, Akmal Hashmi, Munawwar Ali and Saif Hashmi.

KARACHI: Chairman Federal Board of Revenue (FBR) Tariq Bajwa has advised all revenue formation in Karachi to have their focus fixed on revenue targets and advised the Customs and Inland Revenue officers to arrest revenue leakages and ensure completion of revenue targets.

Tariq Bajwa accompanied with Minister of State for Revenue Haroon Akhtar visited all revenue formations in Karachi on Thursday and had meetings with senior officers of Pakistan Customs and Inland Revenue. Member Inland Revenue Ashraf Khan was also there.

Bajwa had discussions with Chief Collector Customs Appraisement South Abdul Rasheed Shaikh; Collector Appraisement West Agha Jawad, Collector Appraisement East Majid Yousafani, Collector Port Qasim Surayya Ahmed Butt and Deputy Collector Afzal Wattoo were also present on the occasion.

In another meeting Bajwa met with Chief Collector Enforcement South Zahid Khokhar; Assistant Collector Aijaz Ahmed; Collector Preventive Tariq Huda, Collector Export Saifuddin Junejo, Collector Gwadar Saeed Akram and collectors of other stations were also present on the occasion.

Talking to the Customs officers, Bajwa said that well reputed and competent officers had been placed on key positions and expressed hope that there will be trickledown effect. Bajwa underlined the importance of dignity and integrity of officers and officials alike.

Chairman FBR expressed that corruption on lower levels would be rooted out and revenue leakage would be plugged.

Tariq Bajwa also met with Director Reforms & Automation Dr. Farid Iqbal Qureshi; Additional Director Saadia Sheeraz, Deputy Directors Qasim Khokhar, Naveed Abbas Memon, Nazia Saleem and other officers were present on the occasion. He advised the officers to keep all automation modules updated to avoid any technical glitch.

Tariq Bajwa appreciated the efforts of the Reforms & Automation team including former Director Majid Yousafani in achieving the milestone of Electronic Data Interchange (EDI) being executed with China and IATA.

KARACHI: The Directorate General of Intelligence & Investigation has booked several persons for being involved in the unauthorized and illegal removal of imported cargo without filing of Goods Declaration and payment of leviable duty and taxes.

According to the details, M/s H.M Ismail & Company filed Goods Declaration KAPW HC-12959 through clearing agent M/s Wahsco Enterprises for the clearance of consignment declared to contain scrap. After due process, the authorities, consignment was out of charged and gate pass was issued and three containers were gate out.

Investigations revealed that M/s Wahsco Enterprises on the basis of above referred gate pass, took the delivery of two containers HMCU-9057434 and HMCU-9154666 belonging to their own GD and also got delivery of container EGSU-9063979 instead of delivery of their third container TCLU-8863979.

Container EGSU was imported from Barcelona by M/s Dependable Industry for which no GD has been filed.

It was further known that imported cargo from the above mentioned three containers were unstuffed at Malik Fayyaz Godownin SITE Karachi.

Staff of Directorate visited the godown and unstuffed goods reportedly belonging to M/s Dependable Industry was detained.

Importer and clearing agent instead of identifying the omission to concerned authorities got re-entered the said empty container of other importer i.e. M/s Dependable Industry in the yard of M/s Friends Corporation to manage clearance of the same from Customs by stuffing some sort of scrap in it.

Moreover, M/s Wahsco Enterprises illegally got delivery of their third container TCLU in connivance with Mohammad Kaleem Vohra of M/s Friends Corporation through an altered gate pass by KPT Authorities. Delivery of TCLU was allowed by Preventive Officer Shahid Sohail without entering the same in computer system or manual register.

An FIR has been lodged and efforts are underway to apprehend the accused persons.

KARACHI: The Sindh High Court has dismissed as many as 121 petitions filed by iron and steel importers challenging the regulatory duty on the import of several goods vide amendment to SRO 568(I)/2014.

These 121 petition pertained to MCC Appraisement East and after the dismissal of these petitions, a revenue of Rs900 million would be realized.

Overall, this landmark decision would result in revenue recovery of Rs15.0 billion at Customs Appraisement South, as around Rs300 million each in terms of regulatory duty would also be realized at MCC Port Qasim and MCC Appraisement West.

Deputy Collector Rana Ali Waheed pursued the case and it was due to his efforts the case was so strong that the High Court dismissed the petitions.

Former Collector Appraisement East Manzoor Memon under Section 331b had hold all transshipment consignments to Lahore dry port because Lahore High Court had suspended SRO 568(I)/2015.

It may be mentioned here that after the Lahore High Court suspended the said SRO, the number of TPs to Lahore Dry Port had surged significantly. However, Additional Collector Shahab Imam and Assistant Collector Asim Rehman took a stand and stopped the TPs to Lahore.

Lahore High Court suspended the imposition of Regulatory Duty enforced via SRO 601(I)/2015 effective to the extent of Collectorates falling within the jurisdiction of Lahore High Court.

Resultantly, the importers diverted their shipments to Lahore dry port in order to avoid Regulatory Duty.

Sindh High Court in interim order had advised the importers to deposit the differential amount with the Nazir of the Court or submit bank guarantees against provisional release of goods.

Sources said that Customs authorities would encash the securities and draw from the court Nazir once the detailed judgment was issued.

The government had imposed regulatory duty ranging 5.0 percent to 15 percent on several items being imported from China under free trade agreement (FTA). The regulatory duty was in excess of already settled duty and taxes.

KARACHI: Collector MCC Appraisement East Majid Yousafani has notified redistribution of work among Principal Appraisers.

According to details, Sajid Ali Bhutto has been assigned to Group-I & FTA; Mir Mansur to Group-II and DTRE; Javed Akhtar to Group-III, Law Section and Classification Committee; Imam Bux Baloch to Group-IV and Warehousing; Mehtab Ahmed to Group-IV and Pre-refund Audit and MCD; Agha Mohammad Aslam to Group-V, FTO & Adjudication; Sikandar Ali Junejo to Group-V & Laboratory; Shafiullah to Group-VI & Recovery; Mohammad Anjum Barakzaito Group VII, Mohammad Ibrahim R&D Section & Audit; Ms Razia Sultana Bhutto to One Customs except vehicles of Chapter 87.

KARACHI : Assistant Collector Wasif Malik’s team at Jinnah international airport, in last 48 hours arrested 2 passengers.

They were identified as rehmat khan and Ali karani. Both passengers were stopped on basis of profiling. On personal body search of the passengers, Pakistan customs recovered currency worth Rs5.0 million from rehmat khan and currency worth Rs3.0 million from ali karani.

The currency was recovered from shoes of the passengers. Both passengers were going to Dubai. Both have been arrested and FIR is lodged. Further investigation is in process.

The total currency cases in the month of August are 3 in which the total currency seized is Rs13.1million.

KARACHI: The Ministry of Defense, on the proposal of US ODRP, has recommended amendments in Customs General Order (CGO)-10 in a bid to protect their patsy.

The prime objective of the proposed amendment in CGO-10/2012 is to protect the focal person of US Consulate General Karachi, who has been found involved in pilferage of US Army/NATO/ISAF reverse cargo.

It may be mentioned that huge quantity of hazmat waste and other goods including power generating units destined to Dubai and Germany via Port Qasim was pilfered in Pakistan.

The CGO-10/2012 provides, “If the goods are found missing, stolen or removed due to an) reason, penal action shall be taken against the concerned persons including the carrier, authorized agent and focal person along with recovery of the duty and taxes involved in accordance with the provisions of Customs Act, 1969”.

And now, the US authorities want that the mention of ‘focal person’ should be taken out of the CGO-10. Sources said that the US authorities have also sought diplomatic immunity for their focal person.

A former clerk at Pakistan Customs Computer Bureau named Iftikhar Haider was nominated by US Consulate as the focal person to supervise and look after the movement of cargo of US Army/NATO and ISAF.

Sources said that Iftikhar Haider was a Pakistani national and seeking diplomatic immunity for him proved that the US authorities were not only aware of Haider’s wrongdoings, rather US Consulate patronized the pilferage of US Army/NATO/ISAF cargo including hazmat waste in Pakistan.

To recall, the Supreme Court of Pakistan took a suo moto action in 2011 regarding pilferage of liquor in Pakistan. Several companies including M/s Lunar and M/s Berger Louis were importing liquor, which was to be transported to Afghanistan for US Army and NATO/ISAF forces, but the same was being pilfered in the country. These importers had the authorization and quota letters from different embassies.

So in order to eliminate such pilferage US Consulate, Ministry of Defense and Customs in coordination with each other formed CGO-10/2012, and the focal person was nominated to deal with the transportation of US Army/NATO cargo to end pilferage.

Now, the US authorities want amendment in the CGO-10, which was formed with their input and consent.

Director General of Intelligence & Investigation and Directorate of Transit Trade have lodged several FIRs pertaining to the pilferage of reverse cargo. These FIRs have booked the authorized agents and bonded carriers as provided by the CGO-10. However, the focal person was not nominated in FIRs. But, Iftikhar Haider has been nominated in ‘Contravention Reports’ for recovery of duty and taxes pertaining to the pilfered goods. However, the focal person has not appeared before Adjudication for hearing despite several notices.

This is the first time CGO-10 is being enforced, which irked US and the Consulate approached Ministry of Defense proposing the amendments.

Sources said that US authorities were desperate to protect and save Iftikhar Haider. If they failed in bailing out Haider, other elements would not play in their hands serving their vested interests in Pakistan.

It has become quite evident that the US’s so called war against terrorism is being fought in Pakistan and the people of Pakistan have suffered just too much.

Former PM Shaukat Aziz had given complete liberty to Americans, hundreds of passports were issued there was no check and balance, and as a result the entire country became a battle field. The US funded and formed several militant groups to serve their designs and these groups have now become a nuisance for Pakistan.

Sources said that not only the civil society was corrupted through flow of US dollars, even the institutions were weakened.

Sources however said military leadership and political leadership are on the same page and working in close coordination as well as cooperation to counter all menaces including terrorism and anti-state conspiracies. Moreover, the foreign policy shift suggests that both military and political leadership has realized that being on US block was a loss-loss deal for Pakistan and its people.

It is hardly possible that the concerned authorities would even consider the proposal of US Consulate issued by the Ministry of Defense recommending amendments in CGO-10/2012.

KARACHI: The Directorate General of Customs Valuation has determined the customs values of ginger and garlic vide Valuation Ruling No.754/2015.

References were received from different importers and stakeholders regarding under invoicing and variation in the declaration of value of ginger and garlic.

With a view to reflect the current prices prevailing in the international market, an exercise to determine the values of subject goods was undertaken.

Accordingly, fresh ginger under PCT 0910.1100 imported from China would be assessed to duty and taxes at $0.80 per kg, values of fresh ginger imported from Indonesia, Vietnam and Myanmar are determined at $0.75 per kg and Indian origin ginger importer from land route would be determined at $0.7 per kg.

Dry ginger under PCT 0910.1100 and 0910.1200 of China origin would be assessed to duty and taxes at $2.0 per kg; and dry ginger imported from Indonesia, Vietnam, Nigeria, Myanmar and India would be assessed at $1.90 per kg.

Customs values of Garlic under PCT 0703.2000 of China origin are fixed at $0.80 per kg while garlic imported from Indonesia, Vietnam, Myanmar and India via land route would be assessed at $0.75 per kg.

KARACHI: The Directorate of Intelligence & Investigation – Quetta has seized three trucks loaded with 1,700 bags of Diammonium phosphate (DAP) being smuggled to Afghanistan.

Deputy Director Inamullah Wazir had this information that urea fertilizer would be smuggled to Afghanistan. He passed this information to Director Irfan-ur-Rehman, who promptly took action and the vehicles along with the commodity bags were nabbed. Upon examination, it was found that the bags actually contained DAP.

Urea is a precursor chemicals, which can be used to build explosive devices and one of the products on the radar of Program Global Shield.

Throughout the recent years the world has become a witness to increasing incidents of the use of the improvised explosive devices (IEDs) beyond the conflict zones. IEDs are the most prevalent form of explosives employed by terrorists around the world particularly because the precursor chemicals needed to manufacture them are cheap and widely available.

In a unique initiative to secure global supply chains and enhance public safety, the WCO has partnered with Interpol and the United Nations Office on Drugs and Crime (UNODC) and launched Programme Global Shield. This Programme aims at prevention of smuggling and illicit diversion of precursor chemicals that could be used to build IEDs.

Earlier, the Directorate of Intelligence & Investigation Quetta has foiled a bid to smuggle urea fertilizer to Afghanistan and seized 8360 urea bags along with 19 trucks carrying the commodity.

The market value of seized urea is around Rs20 million while seized trucks are worth Rs47.5 million.

According to the details,  in pursuance of information conveyed by Director General, Intelligence & Investigation — FBR, Islamabad, the staff of the Directorate of Intelligence & Investigation — Quetta in a major sting operation spanning over many days, with the assistance of Qilla Saifullah Scouts (FC) has seized 8360 Bags of Urea Fertilizer near Kadni Border post on Pak-Afghan border about 77 KIM north-east of Pishin.

The 19 trucks carrying the fertilizer being smuggled to Afghanistan have also been seized by the Directorate. This is the biggest ever seizure of fertilizer being smuggled across the Pak-Afghan border and will have salutary effect on the efforts of LEAs deployed at the border to stem the tide of rampant smuggling of fertilizer which has serious security implications due to its potential use in the preparation of explosives by the extremists.

It is also pertinent to mention that the Government of Pakistan provides substantial subsidy on local production as well as import of fertilizers in order to encourage the local farming community.

KARACHI: The Directorate General of Customs Valuation has fixed the customs values of household appliances vide Valuation Ruling No. 755/2015. This Ruling has been issued by director Manzoor Memon, who is a dedicated officer and has started streamlining things quickly after his posting as Director Customs Valuation.

A number of references had been received regarding under invoicing in the values of household appliances. Moreover, the existing ruling was old and needed revision.

Therefore, an exercise to determine the customs values of the subject goods was initiated. It was taken into account that the customs values should be determined after covering maximum brands.

Juicer (single function) under PCT 8509.4030 will be assessed to duty and taxes at $14.55 for category-A; $6.0 for category-B and $5.65 for category-C.

Juicer Extractor/Blender 3 in 1 under PCT 8509.4010 will be assessed to duty and taxes at $27.50 for category-A; $11 for category-B and $9.90 for category-C.

Citrus Juicer under PCT 8509.4030 will be assessed to duty and taxes at $8.70 for category-A; $3.85 for category-B and $3.5 for category-C per piece.

Blender/Grinder 2 in 1 under PCT 8509.4030 will be assessed to duty and taxes at $12.9 for category-A; $5.65 for category-B and $5.3 for category-C per piece.

Blender/Grinder 3 in 1 under PCT 8509.4010 will be assessed to duty and taxes at $16.15 for category-A; $7.10 for category-B and $6.35 for category-C per piece.

Blender/Grinder 4 in 1 under PCT 8509.4030 will be assessed to duty and taxes at $22.65 for category-A; $10.6 for category-B and $7.70 for category-C per piece.

Chopper under PCT 8509.4010 will be assessed to duty and taxes at $14.55 for category-A; $6.45 for category-B and $6.0 for category-C per piece.

Chopper+grinder+Blender 3in 1 under PCT 8509.4030 will be assessed to duty and taxes at $19.40 for category-A; $10.35 for category-B and $9.55 for category-C per piece.

Hand mixer/Hand blender under PCT 8509.4010 will be assessed to duty and taxes at $6.45 for category-A; $3.90 for category-B and $3.55 for category-C per piece.

Food Processor under PCT 8509.8000 will be assessed to duty and taxes at $32.35 for category-A; $18.75 for category-B and $14.15 for category-C per piece.

Sandwich Toaster 2 slice under PCT 8509.7200 will be assessed to duty and taxes at $14.55 for category-A; $6.5 for category-B and $6.0 for category-C per piece.

Sandwich Toaster 4 slice under PCT 8509.7200 will be assessed to duty and taxes at $16.15 for category-A; $7.15 for category-B and $6.35 for category-C per piece.

Oven toaster 7 ltr to 10 ltr under PCT 8509.6090 will be assessed to duty and taxes at $25.86 for category-A; $10.35 for category-B and $9.90 for category-C per piece.

Over toaster 16 ltr to 25 ltr under PCT 8509.6090 will be assessed to duty and taxes at $29.10 for category-A; $12.95 for category-B and $10.60 for category-C per piece.

Popup toaster 2 slice under PCT 8509.7200 will be assessed to duty and taxes at $9.70 for category-A; $4.85 for category-B and $4.6 for category-C per piece.

Popup toaster 4 slice under PCT 8509.7200 will be assessed to duty and taxes at $12.95 for category-A; $5.85 for category-B and $5.5 for category-C per piece.

Microwave oven manual 17 ltr under PCT 8509.5000 will be assessed to duty and taxes at $51.75 for category-A; $24.25 for category-B and $21.90 for category-C per piece.

Microwave oven manual 25 ltr under PCT 8509.5000 will be assessed to duty and taxes at $55 for category-A; $38.80 for category-B and $28.60 for category-C per piece.

Microwave oven digital 17 ltr under PCT 8509.5000 will be assessed to duty and taxes at $75 for category-A; $45.30 for category-B and $28.40 for category-C per piece.

Microwave oven digital 25 ltr under PCT 8509.5000 will be assessed to duty and taxes at $125 for category-A; $55 for category-B and $42.40 for category-C per piece.

Deep Fryer under PCT 8509.6090 will be assessed to duty and taxes at $19.50 for category-A; $10.35 for category-B and $8.85 for category-C per piece.

Electric Kettle 1-ltr under PCT 8509.7100 will be assessed to duty and taxes at $8.45 for category-A; $3.60 for category-B and $3.35 for category-C per piece.

Electric Kettle above 1-ltr under PCT 8509.7100 will be assessed to duty and taxes at $8.75 for category-A; $5.20 for category-B and $4.95 for category-C per piece.

Hair dryer under PCT 8509.3100 will be assessed to duty and taxes at $9.40 for category-A; $4.85 for category-B and $4.25 for category-C per piece.

KARACHI: Pakistan Customs has foiled a bid to smuggle gold jewelry worth Rs5.0 million and arrested a person. The FIR to this effect has also been lodged.

According to details, the team of Assistant Collector Wasif Malik at Jinnah international airport intercepted a passenger identified as Shahzad Ahmed coming from Dubai on Emirates Airline flight EK 618 and recovered gold jewelry artistically concealed in the batteries of emergency lights and fans.

The jewelry recovered is weighed at 1.35 KG having a value of Rs5.0 million. The passenger has been arrested and FIR lodged. Matter is being investigated.

KARACHI: The Director General, Customs Valuation rejected a revision appeal filed by a local importer of dairy products against custom value determined vide Valuation Ruling no 708/2015.

The valuation order was passed by the Director (Customs Valuation) Karachi impugned in the instant revision. The petitioner Ghani Corporation questioned the valuation on ground that prices of several commodities including Skimmed Milk Powder (SMP) has slumped by 50 per cent and while determining custom value this fact shall be duly considered.

The petitioner company maintained that under the impugned Valuation Ruling, the price for SMP imported from Iran has been taken as $2.00 to $2.00 CNF Karachi but the actual price is still lower than the determined price.

The petitioner contended that world wide price of SMP at present is between $1.85 to $ 2.00 but price in case of Iran is about $1.50 per kg CNF. A downward revision in custom duty was requested also on ground that irrational valuation promote smuggling while a rational valuation would be in the interest of both importers as well as government in the form of increased duty collection.

The Directorate of Customs valuation responding to the submissions by the petitioner company rebutted the same and maintained that valuation was rational and uniform and assertions by the petitioner company are void and contrary to law. It was also submitted that custom value of imported SMP was determined while considering downward trend vide Valuation Ruling no 713/2015 and that a market enquiry was also conducted before determining custom value of SMP of Iranian origin.

The Director General, Custom Valuation Samaira Nazir Khan after examining the record and considering the arguments advanced by both sides in her order dismissed the revision holding that the respondent department adjudged the custom value considering the downward trend of prices and hence valuation is proper and legal.

KARACHI:-An inordinate delay by Model Customs Collectorate, Lahore in filing an intra court appeal challenging the order of Lahore High Court (LHC) single bench that declared collection of Regulatory Duty (RD) as illegal being in violation of Section 18 (5) of the Customs Act 1969, caused huge loss to the national exchequer.

According to an order, LHC bench hearing a petition challenging the imposition of RD on mobile phones and various iron products held that “ Free Trade Agreement (FTA) being an off shoot of GATT is covered by the provision to Section 18( 5) of the Act of 1965 and hence imposition of RD is unlawful.

The RD was imposed at a rate of rupees 200 per set on Cellular Mobile Phones and at a rate of 15 per cent on billets, bars, wire rods and at a rate of 5 per cent on flat rolled iron or non alloy galvanized plates and cold rolled coils. The judgment resulted in shifting of imports to Lahore Dry Port as billions of rupees to be paid as RD were saved and pocketed by the importers. MCC Lahore did file an intra court appeal but after a considerable delay and according to rough estimates, the loss to national coffers was in billions.

A number of identical petitions were also filed before High Court of Sindh (SHC). The petitioners contended that in view of FTA between Pakistan and China the imposition of the regulatory duty is in contravention of Section 18 (5) of the 1969 Act. One of the counsel for petitioners also raised the ground of discrimination maintaining that impugned notification/ SRO was discriminatory as it provides an unfair advantage to the local industry who were producing goods of lower quality and in any event were unable to cater to the nationwide demands of such goods.

The SHC bench however rejected the disagreeing with the judgment of LHC and ordered release of Regulatory Duty deposited with SHC released in favor of Pakistan Customs. The SHC bench acknowledging the Pakistan’s obligations under the FTA with China held that “such obligations cannot be enforced domestically unless such bilateral agreement is incorporated into the domestic law “.

The bench held importers/ petitioner could avail the benefit of the Section 18(5) of Customs Act 1965 only “if it is extended to the mutual agreements FTA) through appropriate legislation“.

The petitioners/ importer moved the court as federal government in order to implement Article 8 of the FTA issued a notification SRO 659 (I) / 2007 allowing gradual reduction of tariff over certain imported goods originating in China. They contended that FTA has been enforced domestically by introducing proviso to Section 18 (5) through the Finance Act 2007 and hence the reduction to tariff mentioned in Category IV must result in a cumulative reduction of all duties imposable under section 18 (1), (3) and (5).The diversion of exports to Lahore Dry Port was halted after the decision by the SHC and also resulted in realization of Regulatory Duty to the tune of billions of rupees at different ports of Karachi, Pakistan.

The SHC judgment also saved the local rerolling industry from extinction as if the LHC decision was enforced/followed, the imported items from China were destined to capture the local market in terms of rates as well as quality.

The petition before the Sindh High Court was filed by M/s. Shanghai Industries, M/s. Majeed & Son Steel (PVT) Ltd, M/s. Razzaque Steel (PVT) Ltd, M/s. Nawab Brothers Steel Mill (PVT) Ltd & another, M/s. Dewan Steel Mill (PVT) Limited, M/s. Union Steel (PVT) Ltd, M/s. Dewan Steel Mills, M/s Ittehad Steel Industries, M/s. Haider Industries and others, M/s. Galaxy Construction, M/s I. International Industries, Mohammad Noor Ali and others, Muhammad Irshad, M/s. Modern Wire & Cable Industries Shahid Majeed, Muhammad Ashfaq, Khurram aslam Shaikh, M/s. Supreme Tube Industries, M/s. Lucky Star Steel, Khurram Shahzad Zubair, M/s. Inayat Pipe Industries, M/s. M.P. Industries (PVT) Limited, Arshad Sharif and others, M/s. Victory Pipe Industries (PVT) LTD and others, M/s. Sheikh Pipe Mills (PVT) Ltd and others, BBJ Pipe Industries, M/s. Ruby Steel Corporation (PVT) Ltd, M/s. International Industries Limited, M/s. Smart Steel Industries, M/s. Sun Tube (PVT) Ltd and others, Imran Bashir, , M/s. Modern Pipe (PVT) LTD, M/s. Karachi Tube Mills (PVT) Ltd, M/s. Pak Pipe Steel Industries, M/s. Shaheen Pipe Industries, M/s. Tayyaba Industries International, M/s. Pakistan Welding Electrodes, M/s. Izhar Steel (PVT) Ltd, M/s. Bismillah Industries, M/s. Hamza Industries, M/s. A.N. Industries, M/s. H.H. Industries, M/s. Khalid Pipe Mills (PVT) Ltd, M/s. Haider Industries, M/s. H.H. Cold Rolling & Tube Mills, M/s. Shaikh Tube Mills, M/s. Mehboob Tube Mills, M/s. Nation Tube (PVT) Ltd, M/s. Crystal Steel Corporation, M/s. Bilal Steel, M/s. Wasif Steel Industries,Fateemi Wires (PVT) Limited and other,Mittho Brothers (PVT) Ltd, M/s. Aisha Steel, ,M/s. United Mobile, M/s. New Allied Electronic Industries, M/s. Digicom Trading (Pvt) Ltd, M/s. Advance Telecom, , M/s. Naveed Gaba, ,M/s. Data Steel Pipe Industries (Pvt) Limited and others, M/s. Pakistan Pipe Industries, M/s. Bashir Pipe Industries, , ,M/s. Mohsin Metal Works, M/s. Gogan Steel Trader & others, M/s. Galaxy Energy Pakistan (Pvt) Ltd, M/s. Steel Re Rolling Mills & others, M/s. Hashim Trader & others, , Tariq Chobdar, Muhammad Ahmed Chobdar, ,M/s. Siddiq Sons Tin Plate Limited, , Mohammad Mansoor, M/s. Steel Zone, M/s. Raja Steel, , M/s. Kamran Steel, M/s. AKK Enterprises & others, M/s. Steel International, M/s. Bashir Pipe Industries (Pvt) Ltd, M/s. Steel Win, M/s. Bismillah Industries, M/s. Pyramid Gas (Pvt) Ltd, M/s. Muhammad Ali Iron Merchant, M/s. Hero Motors, M/s. Uma Traders & others, M/s. Aslam Traders & others, M/s. Jamil Brothers, M/s. Deenar Steel Mills & others, M/s. Global Steel Crop. & others, M/s. Pearl Apple & others.
Federation of Pakistan was represented by Zia-ul-Haq Makhdoom, Deputy Attorney General Model Customs Collectorate through Kashif Nazeer Advocate along with Ali Waheed Khan Deputy Collector and Ilyas Ahsan Khan, Appraising Officer (Legal) from Custom Depatment.

KARACHI: The Directorate General of Customs Valuation has determined the customs values of Electrolyte Tin Plate (ETP) and Tin Free Sheet (TFS) vide Valuation Ruling No. 756/2015.

The Customs values ETP and TFS were determined vide Valuation Ruling No.467/2012. Lately certain importers have been contesting that the values of these items have declined in the international market and had requested to re-determine customs values.

In a petition, High Court ordered that the valuation ruling no.467/2012 was three year old and the issue should be resolved. With a view to reflect the current prices prevailing in the international market, an exercise was under taken.

Accordingly, Electrolyte Tin Plate (ETP) of prime quality under PCT 7210.1290 would be assessed to duty and taxes at $0.90 per kg while that of secondary quality under PCT 7210.1210 would be assessed at $0.765 per kg.

Tin Free Sheet (TFS) of prime quality under PCT 7210.5090 would be assessed to duty and taxes at $0.95 per kg while that of secondary quality under PCT 7210.5010 would be assessed at $0.807 per kg.

KARACHI: The Customs duty collection by Pakistan Customs surged by 2.35 percent to Rs39.361 billion during first 08 months ended August 31, 2015 as compared with the collection of Rs38.457 billion in the same period last year.

Similarly, Customs duty collection by Pakistan Customs MCC south region surged by 5.18 percent to Rs33.567 billion during 08 months i.e. January 01, 2015 to August 31, 2015 as compared with the collection of Rs31.913 billion in the same period last year.

An official said that FBR assigned targets to Customs for the purpose of preparing for the budget. “It does not mean that Customs had any obligation to achieve these targets by any means. These are just benchmarks set on the basis of previous collections,” he said.

Overall sales tax collection at import stage stood Rs78.858 billion during the period under review, down 10 percent as against Rs86.247 billion in the same period last year. Appraisement South collection of sales tax at import stage stood at Rs65.212 billion, down 11 percent as against Rs73.147 billion collected last year in the similar 11 months.

Income tax collected by Pakistan Customs during the 08 months period stood at Rs23.714 billion as compared with Rs23.172 billion last year. Appraisement South collected Income tax of Rs20.502 billion in the 08-month period ended August 31, 2015 as against Rs20.19 billion collected in the same period last year.

Highest revenue collection in terms of Customs duty came from MCC Appraisement East, which collected Rs10.843 billion followed by MCC Appraisement West collecting Rs9.547 billion and MCC Port Qasim collecting Rs8.861 billion in the 08 months ended August 31, 2015.

For the 8-month period under review MCC Rawalpindi CD collection stood at Rs 395.59 million compared with Rs702.37 million collected in same period last year i.e. (8MFY14); MCC Lahore CD collection stood at Rs3.196 billion (Rs3.545 billion in 8MFY14); MCC Islamabad CD collection Rs189.61 million (Rs227.35 million 8MFY14); MCC Peshawar CD Rs962.02 million (Rs728.73 million 8MFY14); MCC Multan CD collection Rs991.52 million (Rs1.015 billion 8MFY14); MCC Hyderabad CD collection Rs115.92 million (Rs78.59 million 8MFY14); MCC Quetta CD collection Rs312.16 million (Rs111.75 million 8MFY14); MCC Karachi preventive CD collection Rs3.746 billion (Rs1.899 billion 8MFY14); MCC Karachi EPZ-Imports CD collection stood at Rs40.69 million (Rs16.89 million 8MFY14); MCC Sialkot CD collection Rs19.82 million (Rs15.96 million 8MFY14) and MCC Faisalabad customs duty collection in 8MFY15 stood at Rs33.99 million compared with Rs308.80 million collected in 8MFY14.

KARACHI: The Customs Appellate Tribunal dismissing an appeal filed by importer of shoes and poly resin for false, deliberate mis-declaration has reduced the fine from 35 percent of the value of goods to 20 percent and reduced penalty by 50 percent to Rs100,000.

The appeal was filed by M/s Salma Sons against an order passed by MCC Appraisement – West, which rejected the self-assessment made by the importer.

The Collectorate maintained that an incomplete, vague  description of goods was made by the importer to claim undue benefit of SRO, Free Trade Agreement  (FTA) between Pakistan and China. An attempt was made willfully and with mala fide intention to defraud and deprive the national exchequer from its legitimate revenue to the tune of Rs1.537 million in terms of Customs duty and other taxes.

Another mis declaration was about the origin of the goods which was claimed to be China while in fact they included items from Italy, USA also.

Similarly the item declared as poly resin on examination was found to be Poloyol. The appellant/ importer was charged with contravening different sections of the Customs Act and was slapped a redemption fine at the rate of 35 percent of the value of goods beside penalty of rupees 200,000. The tribunal however taking a lenient view ordered reduction of fine from 35 per cent to 20 per cent of the total value of the consignment and penalty from 200,000 to

KARACHI: The Customs Appellate Tribunal has set aside the order-in-original along with the fines and penalties imposed by Adjudication on a medical equipment importer.

M/s Medico Health Care imported medical equipment, Anesthesia and Spinal chord needles and sought clearance under PCT 9018.3950.

However, the appraising authority found that importer had mis-declared the goods and HS Code to avoid proper levy of duty and taxes. The assessment authority deemed PCT 9018.3200 to be appropriate.

A show cause notice was issued by the Customs Collectorate to the appellant following which the goods were confiscated by the order of Customs Adjudication. The importer was however given an opportunity to redeem the consignment on payment of 20 percent redemption fine. A penalty of Rs100,000 was also imposed.

The importer approached Tribunal and maintained that it imported Spinal Needles used for surgical and epidural anesthesia and the respondent Collectorate West has wrongly classified the surgical needle as tubular needle without considering the structural  difference between the two i.e  tubular metal needle and surgical needle and that consignment be treated under HS 9018.3950 instead of HS 9018.3200.

During hearing of appeal, the tribunal ordered a comparative study of imports identical in nature by different firms and from different countries. The data  collected  during study  for the period November 2014 and December 2014 revealed that respondent Collectorate wrongly classified the spinal needles under heading 9018.3200 which attracted custom duty of 20 percent while in similar cases (import by other firms /companies) Custom Duty has been charged at a rate of 5 per cent.

The tribunal held that treatment with appellant company was against the principles of natural justice and equity. As the error of classification and resultant delay in clearing of the consignment was due to the respondent Collectorate of Customs West, the appellate tribunal also ordered waiver of the wharfage, storage and demurrage charges.

KARACHI: The Directorate of Transit Trade has arrested Faraz Khan of M/s Saryal Cargo as he was nominated in an FIR lodged pertaining to the pilferage of NATO/ISAF reverse cargo.

Sources said that Faraz Khan was absconding and reportedly had taken refuge in Afghanistan. It was known that Faraz Khan was coming back to Pakistan via Torkham border. The FIA checked his documents and found that the person was wanted by Directorate of Transit Trade.

The FIA authorities arrested the accused and handed over to Directorate of Transit Trade Karachi. The accused was presented before the Customs Court and a 14-day remand was acquired.

An official said as this was a high profile case, Director Transit Trade Wajid Ali had taken other agencies onboard including the FIA, which resulted in the arrest of a wanted accused.

It may be mentioned here that M/s. Saryal Cargo Channel & Customs Clearing Agent, an authorized representative of Consulate General of the United States of America, filed a GD at Directorate of Transit Trade Peshawar (Torkham) for a consignment of ISAF reverse cargo declared to contain batteries wet filled with acid (hazmat waste) for transit to Port Qasim for export to Germany.

As per the report on reverse of the GD the container has been inspected and seal verification was made at Torkham.

The clearing agent M/s. Trade Link International as an authorized representative of US Consulate Karachi submitted five GDs including the above mentioned GD of ISAF reverse cargo transited from Torkham at the same time of ISAF to Port Qasim, for inspection of the containers and seal verification thereof.

However, during perusal and observation of the scanning images of the GDs, the images of the instant GD did not appear as per the declared description. Physical examination of the container was conducted at QICT in presence of representative of M/s. Trade Link International.

During examination shipper and custom seal were found intact. However, the goods were found to be cement blocks and wooden pallets instead of declared description batteries confirming the pilferage of the cargo. An FIR had been lodged accordingly.

KARACHI: The Directorate General of Customs Valuation has determined the customs of value of Halal chicken and turkey meat (frozen) vide Valuation Ruling No.757/2015.

The Customs values of Halal Chicken Meat (Frozen) (H.S Code 0207.1200 & 0207.1400 were determined vide Valuation Ruling No. 700/2014.

The record of the case indicates that the importers on one hand and Pakistan Poultry Association on the other had taken diagonally opposite point of view regarding import value of chicken meat. The importer had submitted that they had purchased chicken meat (breast) frozen at $0.7/kg whereas Pakistan Poultry Association had submitted quotation from Chinese exporter indicating value for skinless whole chicken at $2.37/kg and for boneless breast at $3.27/kg.

The Association had contended that further addition of freight and other charges would increase the value considerably and that the quotation did not meet the ‘Halal’ specifications.

Both claims could not be verified through independent resources, therefore, market survey was conducted and values were determined.

The importer filed Revision Petition before Director General Valuation against eth said ruling. Director General declined interference with the ruling and rejected the petition.

The importer filed appeal against Revision Order before Customs Appellate Tribunal. Tribunal set aside the said ruling and directed to re-determine the customs values afresh.

Accordingly, an exercise was initiated to re-determine Customs values of the subject items.

Accordingly skinless chicken whole (frozen) under PCT 0207.1200 imported from China and UAE will be assessed to duty and taxes at $1.60 per KG.

Boneless chicken breast (frozen) under PCT 0207.1400 imported from China and UAE will be assessed to duty and taxes at $2.65 per KG.

Skinless turkey whole (frozen) under PCT 0207.2500 imported from UAE will be assessed to duty and taxes at $2.00 per KG.

Boneless turkey breast (frozen) under PCT 0207.2700 imported from UAE will be assessed to duty and taxes at $3.00 per KG.

KARACHI: As many as 66 officers and officials comprising principal appraisers, appraisers, examiners, clerks and sepoys of Customs House Karachi are set to retire in 2016.

Customs House Karachi would be losing a number of above mentioned officials in every month of 2016 leaving a wide vacuum, which would definitely affect day to day operations unless measures were taken to fill these positions accordingly.

Principal Appraisers retiring next year include Shaheen Farooq S/O Sh. Farooq Ahmed, Mir Mansoor Ahmed S/O Mir Zahoor Ahmed, Aftab Hussain Arbab S/O Zafar Ali Arbab, Jalaluddin S/O Fasihuddin, Liaqat Ali S/O Nazir Ahmed, Imam Baksh Baloch S/O Delawar, Iftikhar Mehmood S/O Manzoor Ellahi, Naseeruddin Hamayun S/O Muneeruddin Qureshi and Syed Hamid Umer S/O Syed Umar.

Appraisers retiring in 2016 include Ali Akbar S/O Gul Akbar, Zahoor Ahmed Kasi S/O Allah Dad Khan Kasi, Altaf Hussain S/O Shahnawaz, Sanaullah Abbasi S/O Muhammad Nawaz Abbasi, Akmal Aziz S/O Hameed Naseem, Roshan Ali S/O Muhammad Panah Brohi, Muhammad Siddique Zia S/O Ch. Khushi Muhammad, Syed Qamar-ul-Hadi S/O Syed Abdul Hadi, Fayyaz Ahmed Javed S/O Muhammad Shafi and Shamshad Ahmed S/O Mushtaq Ahmed.

Examiners reaching superannuation in 2016 include Javed Saeed Usmani S/O Saeedul Hassan Usmani, Muhammad Iqbal Shah S/O Syed Itrat Hussain, Riaz Ahmed S/O Ferozuddin, Khalid Bashir S/O Abdul Bashir, Muhammad Bashir Vohra S/O Ghulam Rasool Vohra, Muhammad Zakir S/O Abdul Majeed, Shahadat Khan S/O Lachi Khan,Sardar Babar Durrani S/O Sardar Sabir Durrani, Syed Muhammad Arif S/O Syed Zarif Ahmad, Abdul Majeed S/O Abdul Aziz, Zar Khan S/O Rasool Khan,Syed Hasan Muneer S/O Syed Fazlur Rehman, Ajmal Khan S/O Sirajur Rahim, Safeer Ahmed S/O Alif Din and Muhammad Saleem S/O Muhammad Yousuf.

Other officials retiring in 2016 include Assistant Private Secretary Syed Nusrat Pervez S/O Syed Masood Rasheed, UDC S. Nisar Ali Shah S/O S. Nawaz Ali Shah, LDC Muhammad Raees S/O Muhammad Kamal and Record Supplier Muhammad Ashfaq Alam S/O Muhammad Anwar Alam.

A number of sepoys are also retiring next year including  Khalil ur Rehman S/O Mairajuddin, Muhammad Ahmad S/O Muhammad Shafi, S. Maraj Ahmad S/O Ashfaq Ahmad, Asghar Ali S/O Muhammad Din, Din Muhammad S/O Rehman Din, Muhammad Saleem S/O Muhammad Subhan, Usman Ali S/O Barkat Ali, Muhammad Amin S/O Sultan Muhammad, Abdul Raziq S/O Abdul Hakim, M. Akram Khan S/O M. Naseeb Khan, Bahadar Khan S/O Kashmaloo, Sahdullah Khan S/O Amir Ghulam, Muhammad Ali S/O Noor Alam, Riaz Ahmad S/O Qalandar Mir Khan, Sultan Ahmad S/O Muhammad Yousuf, Sahibzada S/O Ali Dad, Muhammad Anwar Ali S/O Abdul Rehman, M. Anwar S/O Kalu Khan, Nazeer Ahmad S/O Kala Khan, Muzammil Hussain S/O Maqbool Khan, Muhammad Yasin S/O Abdul Rehman, Shoukat Hussain S/O Naseer Ahmad, Muhammad Zubair S/O Rustom Khan, Mehmood ul Hassan S/O Abdul Ghafoor, Muhammad Ilyas S/O Abu Bakar Somro,Syed Azmat Pasha S/O Syed M. Muzaffar Hassan, Liaquat Ali S/O Abdul Qayyam and Taj Muhammad S/O Muhammad Zaman.