Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • FBR starts consultations for implementing track, trace system

    FBR starts consultations for implementing track, trace system

    ISLAMABAD: Federal Board f Revenue (FBR) has launched consultations with various sectors for implementing track and trace system to prevent revenue leakages.

    A FBR statement said that to prevent leakage of revenue, under-reporting of production and sales, and to ensure proper payment of FED and Sales Tax on the manufacture and sale of specified goods/ products, the FBR has decided to implement a Track and Trace System for specified goods/ products i.e. Cement, Sugar, Fertilizer and Beverages imported into or manufactured in Pakistan.

    Project Office of Federal Board of Revenue (FBR), confirmed that they have finalized all bidding documents relating to issuance of license of Electronic Monitoring of Production/ Sales and Track and Trace System of the four major sectors Sugar, Cement, Fertilizer and Beverages, the Press Release stated.

    Instructions for Licensing (IFL) and related documents will be published in January, 2020 after consulting all major sectors/ Stakeholders. In order to arrive at the best possible solution, FBR plans to hold meetings with all stakeholders for their input, suggestions and recommendations.

    First meeting in this regard was held on 2nd December, 2019 with Cement manufactures. Second meeting with the Fertilizer manufacturers was held on 5th December, 2019 and third meeting is scheduled on 12th December, 2019.

  • SBP receives $1.3 billion from Asian Bank for economic reforms

    SBP receives $1.3 billion from Asian Bank for economic reforms

    KARACHI: State Bank of Pakistan (SBP) has said that it received $1.3 billion from Asian Development Bank (ADB) on Monday night.

    In a tweet message, the central bank confirmed the transfer of $1.3 billion from the ADB.

    Earlier in the day Minister for Economic Affairs, Muhammad Hammad Azhar witnessed the signing of two loans programme amounting to US $1.3 billion between the government of Pakistan and the ADB for economic reforms.

    The loan agreements were signed by Secretary, Economic Affairs Division, Dr Syed Pervaiz Abbas and Ms Xiaohong Yang, Country Director, Asian Development Bank (ADB).

    Under Special Policy-Based Loan (SPBL) Facility, Asian Development Bank has committed to providing US $1 billion for Economic Stabilization Programme.

    This programme aims at improving exchange rate management, strengthen public financial management to mobilize more revenues, restore allocated efficiency of scarce public resource, address the power sector pricing issues and reduce the social impacts of macroeconomic stability measures by improved targeting and transparency of existing social protection programmes.

    Out of total US $1.3 billion loan, US $ 300 million is allocated to Energy Sector Reforms and Financial Sustainability Program (Subprogram 1).

    It will address issues regarding energy shortfalls, technical lacuna’s and policy related shortcomings in Pakistan’s energy sector.

    The programme will help to secure financial sustainability by controlling new accumulation of circular debt; strengthen governance by rationalizing competitive market road-map, separation of policy and regulatory functions in hydrocarbons sector, appointment of appellate tribunals, implementation of multi-year tariffs and un-bundling of gas sector and reinforce infrastructure improvements through integrated planning to facilitate public and private sector investment across the energy supply chain.

  • Customs announces auction of smuggled vehicles on Dec 11 at ASO Karachi

    Customs announces auction of smuggled vehicles on Dec 11 at ASO Karachi

    KARACHI: Pakistan Customs has announced auction of smuggled vehicles to be held on December 11, 2019 at Anti-Smuggling Organization (ASO) Office, Ghasbandar, Keamori, Karachi.

    Following used vehicles will be auctioned on December 11, 2019:

    01. Toyota Lexus Car – Reg No. UC-868 -Model-2006- (As per seat Belt) Chassis: JTHBG 963905034702 / Engine EMH-3 GR-FE158467 – 3485 cc. at State Warehouse-III- Near PICT Gate-Keamori

    02. Toyota Harrier Jeep – Reg.No-JAA-454 – Model-1998 – 2999cc, Chassis No-MCU-10-0013510 – Engine No- IMZ-FE6688090. at State Warehouse-III- Near PICT Gate-Keamori

    03. Toyota Mark-II Saloon Car / Reg. No-BBL-708 / Model-2000 / 1800 HP, Chassis No-JZX110-6000922 / Engine No-1JZ-075010, In Front of ASO HQ Ghasbandar East Eharf

    04. Toyota AXIO-X car – White Colour – Reg.No.BFE-068 – 1496 cc – Model-2007, Chassis : NZE-141-6028039 / Engine : INZ-C0360547 at State Warehouse-III- Near PICT Gate-Keamori

    05. Toyota Land Cruiser Jeep – Silver Colour Reg. No. BG-1131 – Model-1989 – 3400 cc, Chassis : BJ 60-023765 – Engine : 3B-1098887(As per Reg.Book). DIESEL at State Warehouse-III- Near PICT Gate-Keamori

    05. Mercedes Benz Saloon Car – Black Reg. No- BFF-014 / – Model- 2007, Chassis No. WDD2193222A117436 / Engine No. 64292040471958 / 3200 CC at ASO NMB Wharf EW

    06. Toyota Land Cruiser Jeep – P.White Reg.No. LZN-888 – Model – 1999 – 4663 CC, Chassis No-UZJ 100-0081129 / Engine No- 2 UZ-0132269. at ASO – NMB Wharf EW

    07. Toyota Surf Jeep – White Reg.No.BF-9252 – Model-1998, Chassis No. RZN185-9019896 / Engine No. 3RZ-FE. At ASO – NMB Wharf EW

    08. Toyota Hilux Surf Jeep – Reg. No. CJ-4242 (Sindh) – Model-1990 – 2446 CC, Chassis No LN130-0026273 / Engine No. 2L-2264058 at ASO – NMB Wharf EW

    09. Nissan X-Trail 5 Door Jeep – Pearl White Reg. No. GR-621 – Model-2005 ( As per seat Belt Model-2000 ), Chassis No. NT 30-100374 – Engine No. QR 20 (DE) at ASO – NMB Wharf EW

    10. Toyota Mark- X Car – Trim Reg. No. BFB – 837 – Model-2005 – 2499 CC, Chassis No. GRX 120-3007142 / Engine No. 4 GR-0093992 at ASO – NMB Wharf EW

    11. Toyota Land Cruiser Jeep – ( Petrol ) White Reg. No. BF-5933 – Model-1995 – 4476 CC, Chassis No. FZJ 80-0109507 / Engine No. at ASO – NMB Wharf EW

    12. Honda Civic Hybird Car Reg. No. AND-312 – Model-2008 – 1339 CC, Chassis No. FD 3-1203642 / Engine No. DAA-1984158 at ASO – NMB Wharf EW

    13. Toyota PASSO car Reg. No. GS-6996 – Model-2010 – 996 CC, Chassis No. KGC 30-0044392 / Engine No. IKR 1144091 at ASO – NMB Wharf EW

    14. Toyota AIXO Car Re.No. KCH-434 – Model-2006 – 1496 CC, Chassis No. NZE141-6003694 at ASO – NMB Wharf EW

    15. Mercedes Benz Saloon Car (AG) – Reg.No. # AB 1001, Chassis No-WDB1240312B476728 at ASO – NMB Wharf EW

    16. Toyota Hilux Surf Heep – Reg,No. UU-691 – Modle – 1992 – 240CC., Chassis – LN130-7022502 – Engine No-3244904 at ASO – NMB Wharf EW.

    17. Toyota Mark-X Car Reg.No. BGD-647(Karachi) – Model – 2005 – 2499 CC, Chassis No. GRX120-004523 Engine No. 4 GR-0119104 at ASO – NMB Wharf EW.

    18. Toyota RURIO Saloon Car Reg. No. BFA – 954 (Karachi) – Model – 2006 – 1496 CC – Colour Sky Blue., Chassis No. NCZ20-0051360 Engine No. 1NZB-240903 at ASO – NMB Wharf EW.

    19. Honda Civic Hybird Car Reg. No. AXC – 614 – Model-2012 , Chassis No – JHMFD-36208S205131 – at ASO – NMB Wharf EW.

    20. Toyota Surf Jeep – Reg.No. AFR-2019 – Model – 2000 – 2693 CC., Chassis No-RZN185-0040063 Engine No. 3RZ-FE at ASO – NMB Wharf EW.

    21. Toyota VITZ Car Reg. No. AKV – 219 (Sindh) – Model – 2006 – 1296 CC., Chassis No. SCP90-5081452 at ASO – NMB Wharf EW.

    22. Toyota AXIO Saloon Car – Reg.No. AWB-204 – Model – 2008 – 1496 CC, Chassis No. NZE141-6088775 Engine No. INZ – C837894 at ASO – NMB Wharf EW.

    23. VITZ Car Rsg. No. BFB-648 (karachi) – Model – 2003 – 997 CC – White., Chassis No. SCP10-0432762 – Engine No. 1107800 at ASO – NMB Wharf EW.

    24. Toyota Premio Car Reg. No. BFL-098 – Model – 2005, Chassis No. ZZT – 240-0096078 Engine No. IZZ-FE at ASO – NMB Wharf EW.

  • LTU Karachi detects mega tax evasion of Rs18 billion by a company

    LTU Karachi detects mega tax evasion of Rs18 billion by a company

    KARACHI: Large Taxpayers Unit (LTU) Karachi has detected mega tax evasion to the tune of Rs18 billion by a company.

    The unit, which is the largest revenue contributor towards total Federal Board of Revenue (FBR)’s total collection, issued a statement on Monday saying that it had detected evasion of sales tax to the tune of Rs18 billion.

    “This discovery was made, when a taxpayer’s sales tax returns were scrutinized in depth revealing huge anomalies in declared sales.”

    The LTU Karachi further said that the taxpayer had been served with the statutory notice under the relevant provisions of Sales Tax Act, 1990.

    The unit further hoped to recover the evaded amount following the service of the notice and other legal formalities.

    The LTU Karachi has jurisdiction over companies having huge turnover and paying significant amount as tax revenue.

    The statement did not disclose the name of the taxpayer but the evaded amount shows the company might be belonged to one of those sectors on which the economy relied upon.

    The LTU Karachi has jurisdictions over companies active in sectors including: oil market companies, exploration and production companies, banks, insurance, sugar, textile, cement etc.

    The statement also pointed out another big case of illegal/unauthorized brought forward losses by a company in order to reduce the income tax liability.

    The LTU Karachi detected huge tax evasion by the taxpayer, who claimed unauthorized/illegal brought forward losses to the tune of Rs21 billion.

    “This revelation was made, when taxpayer’s past assessment record was probed in detail, whereby it transpired that against actual assessed losses of Rs10 billion, the taxpayer claimed losses to the tune of Rs21 billion resulting into over claim of losses to the tune of Rs11 billion.”

    This disclosure would result into huge tax payments by the taxpayer during current and future tax years, the statement added.

  • FBR threatens terminating tax treaty with UAE

    FBR threatens terminating tax treaty with UAE

    ISLAMABAD: Federal Board of Revenue (FBR) has threatened to terminate avoidance of double tax treaty with the United Arab Emirates (UAE) for not sharing information of Pakistanis having assets in that country.

    In a statement on Monday, the FBR spokesman said that the tax authorities had once again asked UAE authorities to provide information of Pakistanis having iqama (residential permit) in the UAE.

    The spokesman said that the FBR was conducting scrutiny of those Pakistanis who transferred money illegally to other destinations by evading tax money.

    The spokesman said that those Pakistanis fraudulently shifted the money and concealed by taking advantage of iqama.

    The FBR wrote another memorandum to the UAE authorities to provide details otherwise Pakistan would consider the other option to terminate the avoidance of double taxation treaty.

    Pakistan and UAE signed a full scope tax treaty on February 7, 1993 and it was come into force on November 30, 1994. The treaty became effective in Pakistan from July 01, 1995 and in the UAE on January 01, 1995.

    Under Article 27 of the Treaty both the states are bound to exchange information in case of fiscal fraud and tax evasion.

    The Article 27 is as follow:

    01. The competent authorities of the Contracting States shall exchange such information (including documents) as is necessary for carrying out the provisions of the Convention or of the domestic laws of the Contracting States concerning taxes covered by the Convention, in so far as the taxation thereunder is not contrary to the Convention, in particular for the prevention of fraud or evasion of such taxes.

    Any information received by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that State.

    However, if the information is originally regarded as secret in the transmitting State, it shall be disclosed only to persons of authorities (including courts and administrative bodies) involved in the assessment or collection of, the enforcement or prosecution in respect of, or the determination of appeals in relation to, the taxes which are the subject of the Convention.

    Such persons or authorities shall use the information only for such purposes but may, disclose the information in public court proceedings or in judicial decisions.

    The competent authorities shall, through consultations, develop appropriate conditions, methods and techniques concerning the matters in respect of which such exchange of information shall be made, including where appropriate, exchange of information regarding tax avoidance.

    2. The exchange of information or documents shall be either on a routine basis or on request with reference to particular cases or both.

    The competent authorities of the Contracting States shall agree from time to time on the list of the information or documents which shall be furnished on a routine basis.

    3. In no case shall the provisions of paragraph 1 be construed so as to impose on a Contracting State the obligation:

    a) to carry out administrative measures at variance with the laws or administrative practice of that or of the other Contracting State;

    b) to supply information or documents which are not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State;

    c) to supply information or documents which would disclose any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to public policy.

  • KTBA proposes steps for exports growth without revenue loss

    KTBA proposes steps for exports growth without revenue loss

    KARACHI: Karachi Tax Bar Association (KTBA) on Monday proposed steps to the Federal Board of Revenue (FBR) for the exports growth without any negative implications to the tax revenue.

    The KTBA submitted following proposals to FBR Chairman Syed Shabbar Zaidi:

    1- Section 8B (Bottleneck for potential / existing exports)

    Section 8B restricts Input tax adjustment to the extent of 90 percent of the Output tax (i.e. ratio of Input / Output ≤ 90percent). Since exports do not contribute towards Output tax (denominator) while the input tax relating to exports is included in numerator, therefore, such input tax relating to exports should not be considered for the purposes of comparison of ratio of Input / Output under Section 8B.

    For fair comparison, 90 percent restriction should be made applicable only for local sales where both input tax and output tax are subject to the levy of standard rate of sales tax.

    As per serial no.4 of SRO 1190(I)/2019 dated October 02, 2019, section 8B is not applicable to persons whose zero rated supplies during a month is more than 50 percent of the total taxable supplies.

    Suggestion: Either of the following options may be considered to be implemented by the FBR:

    i. Since exports do not contribute towards Output tax, therefore, condition of 50 percent should be amended to 10 percent [in serial no. 4 of the said SRO 1190] on monthly basis for all exports irrespective of any sector otherwise it would not be possible for registered person to absorb the amount of input tax paid for the purposes of manufacturing of items for local and export sales and consequently, the same would discourage export of goods; OR

    ii. Abolish sales tax on conversion cost (like electricity / gas bills) for manufacturers whose export sales during the preceding tax year is more than 40 percent of the total sales. Sales Tax liability, if any, on local sales, will be discharged by the registered person at the time of filing of monthly sales tax return.

    In case a person utilizing 80 percent of total capacity for local sales gets an opportunity to export remaining unutilized capacity of 20 percent, he will not be interested to avail that export opportunity as input tax paid on goods used for exports will form part of the total input tax and consequently, he will be required to pay 10 percent minimum value addition tax under section 8B, which will be refunded after around a year.

    Considering the impact of finance cost of delayed refund, he will not be interested to avail that export opportunity.

    2- Section 8B (Discriminatory Treatment with Manufacturers as compared to Commercial importers)

    Sales tax is now being collected from manufacturers on almost all value additions (like conversion cost, contractors, transporters etc.) and then they are required to pay 10 percent minimum value addition tax over and above all these inputs under section 8B of the Sales Tax Act, 1990 whereas on the other hand, commercial importers paying 3 percent minimum value addition tax at import stage have been excluded from the ambit of section 8B.

    In order to provide level playing field to manufacturers, the FBR is requested to consider any of the following options:

    i. Exclude manufacturers of 100 percent taxable goods from the ambit of section 8B of the Sales Tax Act, 1990

    ii. If complete exemption is not possible, increase the threshold of restriction of input tax adjustment to 95 percent from present 90 percent; OR

    iii. Abolish sales tax on conversion cost (gas / electricity bills) incurred by manufacturers of 100 percent taxable goods. This will not have any negative impact on Government’s revenue as sales tax liability, will be discharged by manufacturers along with filing of the monthly sales tax return.

    3- MINIMUM VALUE ADDITION (MVAT) SALES TAX AT 3 percent ON IMPORT OF PLANT & MACHINERY

    On the basis of powers under subsection 2 of section 7A, 12th Schedule has been inserted in to the Sales Tax Act, 1990 wherein it has been stated that MVAT will be applicable on

    “All imported goods subject to exclusions as in conditions and procedure given after the Table”.

    Moreover, among few other exclusions under clause 2 of the 12th Schedule, raw materials and intermediary goods meant for use in an industrial process which are subject to customs duty of less than 16 percent have also been excluded from the ambit of applicability of MVAT. You will appreciate that said exclusion is applicable only on raw materials and intermediary products of less than 16 percent Custom duty whereas similar exemption is nowhere specified for Plant and Machinery / spare parts and therefore, custom authorities are charging MVAT on import of Plant & Machinery / spare parts by manufacturers.

    It is needless to mention that exclusion from MVAT is already available to service sector importing goods for their in-house business. Clause 2(iii) of the Twelfth Schedule is reproduce as under:

    (iii) Registered service providers importing goods for their in-house business use for furtherance of their taxable activity and not intended for further supply.

    3.3- Based on the above submissions and considering the fact that goods including plant and machinery imported by service sector is already exempt from MVAT, the Plant & Machinery imported by manufacturers for its own use should not be subject to the levy of MVAT under Twelfth Schedule read with subsection 2 of section 7A.

    Therefore, it is requested to kindly issue necessary notification for inserting following clause in Twelfth Schedule.

    (ix) Plant, machinery and spare parts imported by manufacturers for their in-house business use for furtherance of their taxable activity and not intended for further supply.

    3.4- It is worth mentioning that earlier as per Chapter X of the repealed Sales Tax Special Procedures Rules, 2007 both the goods as imported by a manufacturer of goods for in-house consumption as well as goods imported by registered service providers for in-house business use, were exempt from levy of MVAT, however, in the 12th schedule of the Sales Tax Act, 1990, exemption from MVAT in case of imports of Plant & Machinery/spare parts by manufacturers of goods, has not been retained.

    4. SALES TAX REFUND – ISSUE BEING FACED BY EXPORTERS

    As per the amendments made in Sales Tax Rules, 2006 vide SRO no. 918(I)/2019 dated August 7, 2019, mechanism for expeditious processing of refund claim has been devised only for manufacturers-cumexporters.

    As per the Rules, refund will be treated as having been filed only after filing of Annexure H of the Sales Tax return, for which deadline of 120 days has been prescribed in the Rules and the same can be extended for a period of 60 days on the basis of approval from the Commissioner.

    However, the rules are silent about the mechanism for processing of Sales Tax refunds incase Annexure H has not been filed by manufacturer-cum-exporter for any reason. Considering the legal and legitimate right of the taxpayer to claim adjustment / refund of the input tax, either of the following two option be considered by the FBR for facilitation of exporters:

    i. Allow filing of Annexure H without any time limit [present time limit of 4 months be abolished and taxpayer be allowed to claim refund as and when required]

    ii. Incase present limit of 4 months cannot be abolished, registered persons be allowed at least to alternatively file refund on annual basis after the end of the tax year.

    Apart from the above, Annexure H is only being allowed to be filed to taxpayers who have filed the said Annexure from sales tax returns of July 2019 and onwards. Instead of claiming refund,
    some taxpayers have reported sales tax carried forward balance in their sales tax returns from July 2019 onwards.

    In case they now intend to file Annexure H from the current month, FBR’s online portal does not allow such taxpayers to enter opening balance of inventory / raw materials as the said field in blocked for editing. This limitation should be removed and taxpayers should be allowed to file Annexure H for any specific month, for which they intend to claim refund.

    From apparent mechanism being followed by the system, it appears that those taxpayers who have not filed Annexure H for the month of July 2019 will never be allowed to file Annexure H for any subsequent month.

    This apparent anomaly should be resolved at earliest.

    These suggestions will have no revenue loss to the government as sales tax collected is otherwise adjustable, however, through industrialization, government will be able to generate more tax revenue as well as employment opportunities.

  • FBR issues draft rules for movement of international transshipment cargo

    FBR issues draft rules for movement of international transshipment cargo

    ISLAMABAD: Federal Board of Revenue (FBR) on Monday issued draft rules for the movement of international transshipment cargo through any sea port in Pakistan.

    The FBR issued SRO 1538(I)/2019 for introducing draft rules and asked stakeholders to provide their comments within 15 days to finalize the rules.

    Following are the rules to be inserted in the Customs Rules 2001:

    Rule 510A: Transshipment of imported cargo from gateway port to a foreign port

    The following procedure is prescribed for the movement of the International Transshipment (IT) cargo through any sea port in Pakistan, which shall be distinctly manifested as such in the IGM/carrier declaration uploaded electronically in the Customs Computerized System by the shipping line or its agent. Such manifest shall necessarily include the following information, namely:

    (a) port of loading

    (b) via port (name of the transshipment port of Pakistan)

    (c) port of destination (final port of discharge at foreign destination)

    (d) bill of lading (B/L) No

    (e) name of foreign exporter, and

    (f) name of foreign importer.

    510B: Transshipment of containerized cargo

    The unloading of IT containers of the transshipment of containerized cargo shall,-

    (a) mode in presence of Preventive Officer and after unloading. IT containers shall be stored separately at a place earmarked for them in the notified premises of a seaport.

    (b) the Preventive Officer shall examine the shipper seals of the IT containers and in case of any broken seal, such container shall be examined and immediately released with the Customs seal in the presence of the custodian and same shall be recorded.

    (c) the cargo so unloaded from one vessel for storage for subsequent loading at another vessel shall not be allowed under any circumstances to be taken out of the bonded area. The terminal operator shall b e responsible for safe storage and security of the goods. In case of any pilferage, shortage, theft or damage to goods, the terminal operator shall be liable to make payment of duty and taxes leviable thereon and compensate the owner of goods.

    (d) for loading of stored international destined cargo, master of the vessel or his authorized agent, or Non-Vessel Operating Common Carrier (NVOCC) shall electronically file an online declaration in Pakistan Customs Computerized System for International Transshipment (IT) against respective VIR/IGM and index to be loaded on a vessel for transportation to an international destination.

    (e) this online declaration shall indicate complete details of the consignment and shall be filed with invoice, packing list, bill of lading and any other requirement document.

    (f) no goods for international transshipment shall be loaded on a vessel until the system has allowed loading electronically. The computerized system may on the basis of Risk Management System (RMS) assign such online declaration to the assessing officers for documentary and physical inspection.

    (g) International transshipment of cargo shall be effected within thirty days of inward berthing of vessel.

    (h) if there is a reason to believe that the goods in violation of any prohibition or restriction have been brought for international transshipment, the same shall be examined and auctioned after the approval of the collector of customs, and

    (i) after online allow of loading, goods shall be allowed to be loaded on to the ship under the Customs supervision. The preventive officer supervising the loading shall acknowledge the loading of such cargo. This record shall be reconciled with the copy of Export General Manifest.

    510C. Transshipment of oversized, bulk and break bulk cargo

    (1) Oversized, bulk and break-bulk cargo shall be examined by the Customs upon discharge and examination report along with the pictures of the cargo shall be uploaded in the Customs Computerized system against B/L. Upon filing of online declaration for transshipment, the details of the cargo shall be reconciled with the imported cargo.

    (2) Partial transshipment of bulk or break bulk cargo shall be allowed against Online Bulk Transshipment Declaration having endorsement ‘partial transshipment’ containing details of total cargo arrived, quantity being transshipped and remaining quantity. The shipping line or its representative shall furnish a complete accountal of bulk or break cargo to the Assistant Collector (Import Section) within twenty four hours of the completion of transshipment. In case of liquid bulk cargo, the same shall be stored in the storage tank used exclusively for the international transshipment.

    510D: Financial guarantee on transshipment goods

    (1) The international transshipment goods shall not be subject to payment of import or export duties and taxes provided the activities are in conformity with these rules.

    (2) Shipping line intending to use the facility of International Transshipment shall furnish a financial guarantee for the leviable duty and taxes of the goods as security to ensure exit of goods outside the country within thirty days from the berthing of inward vessel. The financial guarantee shall be forfeited apart from the other consequential penal action under the Customs Act, 1969 and the rules made there under, if the shipping line misuse the facilities of international transshipment.

    (3) If a request for transshipment is not filed for the goods stored for transshipment within thirty days of its arrival, a notice shall be sent to the shipping line or its agent on the address given in the shipping documents for transshipment of goods from the port. If goods still remain on the port after expiry of sixty days of their arrival, the goods shall then be auctioned and unless the delay is attributable to the port authorities.

    513E: Execution of Bond by Shipping Line

    Shipping line shall execute a bond for ensuing to follow Customs Rules and regulations and for immediate removal of the goods from port in case the same is required by an officer not below the rank of Collector of Customs. The collector of customs, after recording the reason of such direction in writing, shall require the shipping line of immediate removal of transshipment cargo.

    510F: Prohibition and Restrictions

    The facility for international transshipment shall not be available to cargo containing arms and ammunition, explosive, radioactive materials, goods and technologies relating to Nuclear and Biological Weapons and restricted commodities under the UNSCC sanctions.

  • Stock market falls by 289 points in narrow range trading

    Stock market falls by 289 points in narrow range trading

    KARACHI: The stock market fell by 289 points on Monday owing to narrow range trading activity.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) closed at 40,443 points as against 40,732 points showing a decline of 289 points.

    Analysts at Arif Habib Limited said that the market opened on a positive note today at +72 points and 1.3 million shares traded at opening.

    The benchmark index went up by 184 points in the morning and largely traded in a narrow range for good part of the session.

    Near close of session market saw profit booking, which brought the index down by 417 points and closed the session at -289 points. Banking, OMCs, Steel, Autos and Cement sector stocks saw major sell off.

    Cement sector led the volumes table with 44.3 million shares, followed by Chemical (37.4 million) and O&GMCs (31.4 million). Among scrips, UNITY led the volumes with 26.8 million shares, followed by MLCF (18.7 million) and LOTCHEM (15.4 million).

    Sectors contributing to the performance include Banks (-152 points), Cement (-65 points), O&GMCs (-58 points), Power (-45 points), Autos (-27 points), Fertilizer (+27 points), E&P (+24 points), Food (+22 points).

    Volumes declined further from 417.1 million shares to 320.1 million shares (-23 percent DoD). Average traded value also declined by 25 percent to reach US$ 73.5 million as against US$ 97.9 million.

    Stocks that contributed significantly to the volumes include UNITY, MLCF, LOTCHEM, PAEL and HASCOL, which formed 27 percent of total volumes.

    Stocks that contributed positively include ENGRO (+23 points), NESTLE (+18 points), OGDC (+13 points), MARI (+10 points) and EPCL (+8 points). Stocks that contributed negatively include UBL (-60 points), HBL (-37 points), LUCK (-35 points), PSO (-33 points), and HUBC (-30 points).

  • Rupee gains 10 paisas on improved inflows

    Rupee gains 10 paisas on improved inflows

    KARACHI: The Pak Rupee maintained gain against dollar and appreciated by 10 paisas on Monday owing to improved economic indicators.

    The rupee ended Rs154.97 to the dollar from last Friday’s closing of Rs155.07 in interbank foreign exchange market.

    The currency experts said that the rupee continued gain and reached to below Rs155 to the dollar after six months. They said that export receipts and inflows of home remittances remained helped the rupee to make gain.

    The foreign currency market was initiated in the range of Rs154.95 and Rs155.05. The market recorded day high of Rs155.02 and low at Rs154.95 and closed at Rs154.97.

    The exchange rate in open market also witnessed appreciation of the rupee. The buying and selling of dollar Rs154.60/Rs154.90 as compared closing of last Friday’s Rs154.80/Rs155.10.

  • Banks to provide details of persons receiving profit on debt

    Banks to provide details of persons receiving profit on debt

    ISLAMABAD: Banks will provide certain information of persons receiving profits on their deposits to the Federal Board of Revenue (FBR) after amendment in the tax rules, sources said on Monday.

    The sources said that the banks will provide details of depositors receiving profit on debt, including name, CNIC, most recent particulars including address, amount of profit on debt during the year, tax deducted etc.

    The banks are required to provide information of persons receiving profit on debt exceeding Rs500,000 during the financial year.

    According to the FBR, every banking company officer, shall file electronically on FBR’s web portal the Account Holders Deposits Statement and Credit Card Payments Statement and Cash Withdrawal Statement as specified in Form „A‟ and Form ‘B’ respectively, for immediately preceding calendar biannually.

    Every banking company officer shall furnish to the Board an annual Written off Loans Statement as specified in Form „C’ for immediately preceding calendar year within three months of the end of the preceding calendar year.

    Every banking company officer, shall furnish to the Board a copy of each currency transactions report and suspicious transactions report generated by it at the time it is submitted to the Financial Monitoring Unit under the Anti-Money Laundering Act, 2010 (VII of 2010).

    Every banking company officer, shall furnish to the Board any information and documents in addition to those mentioned in sub-rules (1) to (3) within the time allowed by the Board.