KARACHI: The Ministry of Interior has initiated the process of reviewing the names on Exit control list (ECL), which are on the list for last one year and more, an official document revealed.

The Ministry has approached secretaries of all the ministries, provincial home departments as well as Inter Services Intelligence (ISI), General Head Quarters (GHQ), Naval HQ, Air HQ, National Accountability Bureau (NAB), Federal Board of Revenue (FBR), State Bank of Pakistan (SBP), Federal Investigation Agency (FIA) and provincial police chiefs and Pakistan Telecom Authority (PTA) to provide ample legal and rules based justification to continue the placement of names on the list recommended by them.

Ministry advised to furnish the reply within one month otherwise the Ministry would be constrained to review the deletion as per available relevant record. Lists of persons on ECL recommended by the respective departments, institutions and organizations have also been dispatched to the respective departments.

For the purpose of reference, it may be mentioned that over 200 persons are on ECL recommended by the FBR only. Thousands of names will be removed from the exit control list if the departments and agencies concerned fail to justify their placement on the ECL within a month.

According to interior minister, Chaudry Nisar, government was preparing a new policy to regulate and standardize the process of placement of names on the ECL.

Exit from Pakistan (Control) Rules, 2010 provide that federal government can prohibit any person from proceeding from Pakistan to a destination outside Pakistan, if he/she is involved in:

(a) corruption and misuse of power or authority causing loss to the government’s funds or property;

(b) economic crimes where large government’s funds have been embezzled or institutional frauds committed;

(c) acts of terrorism or its conspiracy, heinous crimes and threatening national security;

(d) case of key directors of a firm, in default of tax or liabilities of not less than ten million rupees;

(e) case of two or more key or main directors of a firm. In default of loan or liabilities exceeding one hundred million rupees;

(f) any case and his name forwarded by the registrar of a High Court, Supreme Court of Pakistan or Banking Court only;

(g) drug trafficking.

The persons on ECL on the recommendation of FBR include Mohammad Rafiq Tawakkal, Yousaf Tawakkal and Abdul Qadir Tawakkal of Tawakkal Limited, S.M Maqbool of M/s United Sugar Mills, Muhammad Jamil of M/s Noor Steel, Shaukat hussain of M/s Shoukat Hussain  Company, Ghulam Nabi Bhatti of M/s Khyber Gadoon Enterprises, Saleem Arif Siddiqui of M/s Saadi Cement Ltd, Mohammad Akbar Paracha of M/s Commodity General Trading, Mohammad Yaqoob Seth of M/s Nadia Ghee Mills and M/s Nabi Steel, Zakaria Ghani and Aftab siddiqui of M/s Saif Nadeem Kawasaki Motors, Aftab Ahmed Shaikh of M/s Aftab Pvt Ltd,    Rasheed Ahmed Shaikh of M/s Dazzling Traders, Humayun Mirza of M/s AQI Engg, Abdul Razzak of M/s Lucky energy, Asghar Paracha of M/s Akbar Agencies Ltd, Qurban Khan of M/s Charly Enterprises, Nisar Ahmed of M/s Hyat Industries, Zakaria Ghani of M/s Hattar electronics, Abdul Razzak of M/s M.Y Electronics, Ali Poya Mirza of M/s Harman Pvt Ltd, Ch. Nazir Ahmed of M/s Steel Venture, Asghar Parcha of M/s Commodity Impex, Tahir Javed of M/s Sofia Textiles, Mohammad Suleman, Mohammad Usman Amin, Ch. Mohammad Sadiq and Shaikh Amir, Shahid Iqbal of M/s Arian Logistics, Sikandar Aziz of M/s National Adhesive ape, Khalid Sharif of M/s Khyber Tractors, Mohammad Imran Sulfi of M/s Sulfi ghee Mills, Ch. Shahbazuddin and Ejaz Rasool of M/s Sunrise Textile Mills, Ch. Asif ali Faiz of M/s A.M Exports, Ilyas Ahmed, Mohammad Siddiq and Syed Amir Anees of M/s East West Traders, Riaz Ahmed Shaikh of M/s Pacific International, Zahid hussain, Amjad Kaleem, Syed Mohammad Ahsan Raza Sherazi, Mohammad Sadiq Bhatti, Ch. Sher Mohammad, Abdul Halem Khan, Haroon Rasheed of M/s Charly Enterprises, Noor Mohammad of M/s Mideast Associates, Haroon Rasheed of M/s concord Export, Abdul Wahid Mian of M/s Pasrur Sugar Mills, Ghulam Yasin Khan of M/s Megatone Enterprises, Abdul Shakoor Ismail Kaloodi, Iftikhar Ahmed of M/s Diamond Industries, Mohsin Bashir, Mohammad Nawaz Sahi of M/s Shaikh Nooruddin & Sons, Mohammad Hanif Mian, Javed Iqbal Mirza, Azhar Ahsan ullah Shaikh, Kamran Bari of M/s Sofia Textiles, Majid Yar Khan, Imtiaz Ali of M/s Nawaz Khokhar Textile Industries, Faisal Sherjan of M/s NTM, Latif Hakim of M/s Smart cone, Kashif Hameed, Mohammad Obaid Sachwani, Ikram-ul-Haq, Syed Dawood hussain, Shamim Akhtar, Sajjad Afzal, Sumera Afzal, Mohammad Zubair, Shahbazuddin Chaudry, Khalid Shahbaz Chaudry, Tariq Shahbaz Chaudry, Mrs Sardar Bibi, Mrs Riffat Shahbaz, Mrs Shahida Shahbaz, Zahid Mahmood, Tahir Mahmood, Kashif Bajwa, Mrs Shamshad Akhtar, Umar Ali, Shaikh Mohammad Arshad, Dharam Das Shiwani, Mohammad Hanif Mian, Uzair Zakaria ghani, Gulraiz Ahmed Raza, Zulfiqar Ali Shaikh, Altaf Ali Chandio, Mohammad Akram, Tahir Siddique Javed, Mohammad Adnan Sohail, Tanveer Anjum, Mohammad Riaz Malik, Zahid Nisar and Tehmina Mushtaq of M/s Lakahnid Co, Diplomatic bond, Saeed Zaman of M/s A.U Traders, Abid Sadiq, Amir Sadiq, Mohammad Farooq Sial, Bbar hussain, Faisal Awan Malik, Mohammad Naeem Qureshi, Jamal durrani of M/s N.J International, Ch. Mohammad Saleem, Azhar hussain, Abid Mehmood, Lt. Col Retd Hussain Aftab of M/s Eastern General Insurance, S.M Akram of M/s Dawn corporation, Mohammad Yusuf of M/s hina Garments, Ghulam Ahmed Adam, Imran Mehmood Bhatti, Haji Mohammad Amin, M. Saleem, Mohammad Fazil Khawaja, Rafaquat Ali, Mohammad Rashid, Mohammad Aslam Khan, Saeed-ur-Rehman, Shaukat Pervez, Shahbazul Haq Siddiqui of M/s Shebaz Enterprises, Farooq Sh. Of M/s Sh. Agro Industries, Aftab Ahmed of M/s Fazal corporation, Ali Hasan Moony of M/s 1^st Tawwakal Modaraba, Mohammad Aslam of M/s Modern Metalic Services, Mansoor Alam Khan of M/s Khyber Tractors, Gulzar Ahmed of M/s Fazal corporation, Farid Mohammad Paracha of Ghani Textile Mills, Mohammad Ahmed Ibrahim of M/s Zee International, Mohammad Iqbal, Mohammad Jameel and Saadat Yar Sahibzada of M/s Shehzad Ghee Mills,   Asghar Hussain, Usman Ali Raja, Mohammad Shafiq Khan, Mohammad Shahbaz, Farhan Ibrahim, Shakoor Alam, Naila Jamal of M/s N.J International, Nisar Ahmed, Allah Bux, Faisal Shahzad, Dabab Hussain, Mohammad Asif, Mohammad Asim and Mohammad Javed of M/s Sika Paint Industries, Mohammad Sadiq, Suhail Ahmed, Mohamad Saeed, Tasharraf Javed, Mian Khawar Habib, Aamir Javed, Asghar Khan of M/s Smart Zone, Arif sehgal, faisal sharif, muhammad sharif of  m/s oilman (pvt) ltd, muhammad amin, Azhar Majeed Khalid, Ashir Azeem Gil, Muhammad Iqbal Muneeb, abid hussain hakro, anwar, Ikram elahi sufi, m/s kabir aluminum ind (pvt) ltd, Faqir muhammad, m/s faqir muhammad food grain dealer, Muhammad kabir, muhammad nasir, Muhammad idris khokhar, zahid mehmood, muhammad irfan, adil mansoor, iqbal hussain, m/s automotive products (pvt) ltd, Tayab iqbal, ghulam rasool, muhammad munib, rizwan hussain, fareed ahmed, muhammad waseem, usman ghani, munir ahmad, aziz-ur-rehman, faisala hameed, haider ali sheikh, shakeel ahmed sheikh, asif hussain sheikh, imtiaz ajmal, farhan afzal sheikh, shameem haider, muhammad riaz khan, muhammad iqbal, muhammad ayaz khan, m/s shehzad ghee mills (pvt) ltd, Shoukat ali, kashif mehmood, shoukat hussain, adnan zia, rafiullah and muhammad sohail.

KARACHI: Muhammad  Zahid  a  PCS/BS-20  officer  presently  posted  as Collector,  Model  Customs  Collectorate  of  Appraisement,  Lahore,  on  promotion  to  BS-21, is transferred  and  posted  against  the  upgraded  post  of  Collector  BS-21,  Model  Customs Collectorate  of  Appraisement,  Lahore  with  immediate  effect.

KARACHI: The Federal Board of Revenue (FBR) has suspended an official of Pakistan Customs for three months on charges of inefficiency.

According to a notification, the FBR said that the decision had been taken while exercising powers conferred under Rule 5(1) of the Government Servants (Efficiency & Discipline) Rules, 1973, the Competent Authority has placed Muhammad Arshad, Inspector, Model Customs Collectrate, Islamabad under suspension for a period of three months with immediate effect.

The Federal Board of Revenue (FBR) has also imposed major penalty upon Ansar Majeed, BS-16 Auditor Officer of Inland Revenue on charges of charges of inefficiency, misconduct, corruption and negligence of duty.

KARACHI: Chairman Federal Board of Revenue (FBR) Tariq Bajwa has left for Dubai on Friday to attend the meeting with IMF, Member Customs Nisar Mohammad Khan is already in Dubai for this purpose. The meeting is being held for policy level talks between Pakistan and IMF.

IMF role has always been very important in Pakistan’s economy. Through structural adjustments, loans, specific agendas and multiple suggestions and advices, IMF is greatly involved in improving Pakistan economic condition apart from the fact that Pakistan’s real economic growth and development lies in its self-sufficient position without any external help.

The current meeting of FBR authorities with IMF is in continuation of the previous so many meetings held to discuss issues of expansion of tax base, improving Tax to GD ratio, maximization of revenues and tax reforms etc.

In this meeting, FBR will apprise IMF about growth in revenue collection for the year 2014-2015 and inform them about their strategy and efforts in this regard.

It will include review of $6.64 billion extended fund facility (EFF) programme. Focal point, however, will be discussion on revenue generation. FBR will inform IMF that Pakistan’s economy is showing signs of improved activity.

Another important point on the agenda is to discuss and examine possibility of replacing Single Staged Sales Tax (SSST) with existing standard rate of 17 percent sales tax.

FBR will seek guidance from IMF regarding crucial tax reforms of indirect taxes and cooperation in some key tax areas particularly General Sales Tax (GST) structure.

It is hoped that IMF will greatly improve comprehension of FBR on these issues and provide guidance for future strategic decisions.

Written By:

( Nazia Saleem Bhinder )

Deputy Director

Directorate of Reforms and Automation ( Customs ), Karachi.

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.

Written By:

( Syed Haris Raza )

Vice President Pakistan

Gerry’s Dnata

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,

Written By:

( S.M. Tariq Huda )

Collector of Customs

Model Customs Collectorate ( Preventive )

Pakistan Customs

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.

Written By:

( M. Mustafa Khan )

IATA Country Manager Pakistan

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.

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: Chairman FBR Tariq Bajwa and Member Customs Nisar Mohammad Khan will visit Custom House Karachi on Friday and would attend various meetings and deliberate upon the issues facing Customs.

One meeting will be held with Chief Collector Appraisement south Nasir Masroor, Collectors Port Qasim, Appraisement East and Appraisement West would also be present. The meeting with discuss revenue collection and high profile cases pertaining to revenue leakage including pharmaceutical chemical mis-declaration case.

Another meeting would be held with Chief Collector Enforcement Nazim Saleem to discuss the performance of anti-smuggling organization (ASO) pertaining to the smuggling of Irani diesel.

Meetings would also be held at Directorate of Automation – WeBOC with Majid Yusufani to evaluate the performance of the development of description structure project, which is aimed at implementing the complete automation of assessment to minimize the involvement of assessing officers.

Director General of Afghan Transit Trade Ghulam Fareed Manika and Director Wajid Ali would brief the guests about the developments regarding afghan transit trade through railway. Besides, the Chairman FBR and Member Customs would also be apprised of recent developments regarding NATO/ISAF reverse cargo and highly sensitive information would also be shared with them.

KARACHI: The R&D section of MCC Appraisement East gave a briefing and presentation of the senior officers of Customs Appraisement South regarding the case in which security instruments deposited to the Collectorate in provisional assessment cases by the importers were fraudulently released.

Nasir Masroor conducted a meeting in Karachi, which was also attended by Collector Appraisement West Mohammad Saleem, Collector Appraisement East Manzoor Memon and Collector Port Qasim Surayya Butt and additional collectors.

The MCC Appraisement East team had prepared a detailed report about the above mentioned scam and forwarded it to Chairman FBR Tariq Bajwa. It was a comprehensive report and Chairman FBR directed to circulate the report to all Collectorates to avoid any such incidents.

It may be recalled that MCC Appraisement East has booked several persons including officials of National Bank of Pakistan (NBP) in the case of fraudulent release of security instruments, which were deposited to the Collectorate in provisional assessment cases by the importers causing huge loss to the exchequer.

According to details, information was received in the R&D Section that some unscrupulous elements are involved in fraudulent release of security instruments/pay orders which were deposited to the Collectprate in provisional assessment /release cases by importers.

Sources said that former Collector Appraisement East, Najeeb Abbasi had tasked R&D to conduct scrutiny and analysis of security instruments on the information that several instruments had been fraudulently released. MCC Appraisement East has lodged an FIR and arrested NBP officials including bank manager

Nasir Masroor organized the meeting and briefing/presentation meeting. Principal Appraiser Shafiullah, Appraising officers Ashfaque-ur-Rehman, Azhar Abbas and Preventive Officer Malak Hashim gave the briefing through a presentation.

Chief Collector Appraisement South Nasir Masroor personally appreciated the efforts of R&D of Appraisement East comprising Principal Appraiser Shafiullah, Appraising Officer Azhar Abbas, Preventive Officer Malak Hashim, Adil Rasheed and Samar and advised other collectors to include such dedicated and competent officials in their formations.

KARACHI: Finally, the Federal Investigation Agency (FIA) has accorded ‘clean chit’ to a number of Customs officers who were facing investigation pertaining to the clearance of pharmaceutical raw material without certificate of Drug Regulatory Authority.

“The Customs officers have joined the investigation and have given their defense. The investigation officer (IO) is satisfied with the defense and they have been declared as not guilty,” an FIA letter said.

FIA had booked 76 Customs officials including principal appraisers, appraisers and examining officers based on their self-interpreted stance that pharmaceutical raw material could not be imported and cleared without a certificate from the Drug regulatory Authority of Pakistan. Recently, the Agency recorded statements of the Customs officers who were accused of clearing pharmaceutical raw material without fulfilling the mandatory requirements.

The Customs officers submitted that pharmaceutical (allopathic) raw material of pharmaceutical grade was cleared by strictly adhering to the provisions of relevant import policy order. All imports and exports are governed by the import and export Control Act, 1950, and Order made there under called Import Policy Order.

As per the Import Policy Orders from 2005 to date the import of pharmaceutical (allopathic) raw material of pharmaceutical grade is subjected to procedural requirement as mentioned that ‘Import shall be allowed to pharmaceutical industries holding valid pharmaceutical manufacturing license in accordance with the provisions of Drugs (Imports and Exports) Rules, 1976 subjected to the condition that pharmaceutical (allopathic) raw material are of pharmaceutical grade and shall have at least 75 percent of the shelf life calculated from the date of filing of Import General Manifest (IGM) as per provision of Customs Act 1969, excepting those pharmaceutical raw materials specifically allowed by the Director General, Ministry of Health. As regards the position taken by investigating staff of the FIA that prior permission from the officer of the Federal Drug Department for each consignment was required, is not supported by law mentioned above.

Further the Federal Board of Revenue’s (FBR) clarification is self-explanatory that ‘It is clarified that since the new Sales Tax Notification SRO 673(1)/2005 does not prescribe any such condition to produce certificate from the Ministry of Health for granting sales tax exemption on pharmaceutical raw material, it is desired that the concerned appraiser staff may be directed to allow release of Imported raw materials for the basic manufacture of pharmaceutical active ingredients and for manufacture of pharmaceutical products, without payments of sales tax and without requiring any certification from the Ministry of Health’.

The FBR’s above mentioned orders were followed in letter and spirit by the field formations. Accordingly for the release of pharmaceutical raw material certificate from Drug regulatory Authority (DRAP) was not demanded by the customs if not submitted by the importer cum manufacturers themselves.

KARACHI: The Federal Board of Revenue (FBR) has instructed all heads of field formations both Inland Revenue and Customs to ensure full attendance prior to or after the Eid-ul-Azha holidays declared by Government in the formations of FBR immediately.

This sudden circular has spread panic among the officers and officials alike. Many officers and officials had already got their leaves approved for the above-mentioned period.

Moreover, in case any officer/official already been granted leave during the aforementioned days, the same may be treated as cancelled.

It would have been better had the authorities issued these directives earlier, as a large number of FBR employees already made arrangements even the payments for their trips to their natives towns and cities to celebrate Eid with families.

Majority of FBR officers and officials serve at locations away from their homes and families, they are now confused about these sudden instructions.

FBR has warned of strict disciplinary action against the officers/officials defying the aforementioned instructions of the board.

KARACHI: A number of Federal Board of Revenue (FBR) employees and officers particularly those belonging to Punjab and KPK had to cancel their flights and train reservations and some would not be able to celebrate Eid with families after FBR suddenly order cancellation of leaves prior to and after Eid.

Chief Collector Enforcement South Zahid Khokhar and many others had their leaves approved before the official Eid holidays. But, they had to cancel their flight reservations.

Most of these officers and officials will not be able to reach their families in other provinces in time. The government employees faced severe misery in finding flights or train seats and many of them remained deprived.

Deputy Director Dr. Mumtaz had his leave approved and even left for Lahore, but he had to come back Karachi after the FBR instructions. However, some officers who had left for their hometowns preferred to stay with their families.

Federal Board of Revenue (FBR) on September 19, 2015 instructed all heads of field formations both Inland Revenue and Customs to ensure full attendance prior to or after the Eid-ul-Azha holidays declared by Government in the formations of FBR.

This sudden circular has spread panic among the officers and officials alike. Many officers and officials had already got their leaves approved for the above-mentioned period.

Moreover, the order added, in case any officer/official already been granted leave during the aforementioned days, the same may be treated as cancelled.

Both IRS and Customs officers have criticized such a sudden order adding that it would have been better had the authorities issued these directives earlier, as a large number of FBR employees already made arrangements even the payments for their trips to their natives towns and cities to celebrate Eid with families.

Officials said that the head of formations had granted approvals to leave applications after due deliberations so that there could not be any significant staff shortage.

KARACHI: As the Federal Board of Revenue (FBR) has made it mandatory that prior to transfers and postings of FBR officers of Grade-18 and above, a sort of conduct clearance of the officers by Intelligence Bureau (IB) will be needed; a grand-scale reshuffling in the FBR are awaiting the said clearance report.

An official said, IB is not evaluating the officers for transfers nor they had any say in this decision; the intelligence agency would only suggest whether the officers were directly or indirectly involved in any terrorist, criminal or anti-social activity.

Last year, it was for the first time that such a report was sought from the Intelligence Bureau (IB), transfers and postings were then made keeping the agency’s input in view. This experiment proved to be a success, which is evident from the performance of field formations.

Quite contrary to the history, IB is for the first time being utilized at its professional potential instead of using the agency for political interests.

It was learnt that the team deployed in Sindh circle comprises of highly professional and reputed officers/officials, which even include holders of civil and military medals.

An official said that assistance of Intelligence Bureau was needed as the FBR’s own intelligence wings of Inland Revenue and Customs did not performed this due function. It may be mentioned here that Charter of Functions provides that FBR’s Intelligence & Investigation would look into and investigate cases of corruption and mal-practices of the revenue collecting agencies working under the FBR received by the Directorate General through public, press or any other source and to propose appropriate corrective or punitive action.

However, the I&I of FBR has never furnished any such investigative report against the FBR officers.

IB has strengthened its network in the entire province and is keeping strict vigilance over any anti-social and anti-Pakistan activity.

Sources said that the agency has started analyzing high-profile corruption cases, against senior officers of FBR, which were settled in past.

Moreover, the agency is also looking deeply into the money-laundering cases to identify any involvement or patronage by officers.

KARACHI: Nisar Muhammad Khan has assumed the office of Chairman Federal Board of Revenue (FBR) on November 17, 2015 while postings of Nasir Masroor as Member Customs FBR, Rehmatullah Wazir as Member IR Policy FBR, Dr. Muhammad Irshad as Member IR-Operations FBR and Waqar Ahmad as Member Admin FBR have also been notified.

The change of guards as the highest office of the revenue body brings about several challenges for a seasoned officer like Nisar Mohammad Khan.

Chairman FBR has arrived in Karachi Tuesday evening and he will be having a busy schedule for Wednesday i.e. November 18^th, which include introductory meetings with trade bodies.

Sources said that Khan’s goodwill also convinced World Bank and IMF with him being in the chair. Khan has been instrumental in rationalizing the exemptions regime, which also has been a recommendation   by the donor agencies.

Nisar Mohammad Khan has headed critically important and sensitive formations; he had been Collector PaCCS twice and every time he was posted there when corruption and revenue leakage had reached alarming levels.

Sources said that any significant reshuffling in FBR is not on the cards as all the members had been posted with the consent of Chairman FBR Nisar Mohammad Khan. Moreover, senior level postings in Customs were notified on his recommendations as Member Customs. However, there may be some movement in Inland Revenue Service.

Increase in revenue collection is the prime challenge facing the new Chairman while elimination of smuggling will be the area of focus.

An official said SRO 1125(I)/2011 was largely being misused causing huge revenue loss to the exchequer and Customs despite having reasonable evidence could not take punitive action against these elements because of jurisdiction constraints.

SRO 1125(I)/2011 provides duty exemptions on import of certain products to manufacturer importers having manufacturing facility. Inland-Revenue registers importers as manufacturer importers or commercial importers.

There is an established practice that several commercial importers get them registered with IRS as manufacturer importers through the backdoor and import large number of consignments on reduced duty as available vide SRO 1125(I)/2011. These importers shutdown their firms within months and again get themselves registered with IRS with a different profile and the cycle goes on.

Prominently, a huge quantity of cloth imported by commercial importers find their way in the country cleared on paying of duty as 4.0 percent while commercial imports invite 7.0 duty.

Another menace that is on the top of agenda for the new Chairman is ‘fake refunds’. Several elements with the connivance of officials are draining out the exchequer receiving refunds on fake and flying invoices.