Pkrevenue.com

Author: Mrs. Anjum Shahnawaz

  • Harsh penalties for pilferage of transshipped goods

    Harsh penalties for pilferage of transshipped goods

    KARACHI: Customs laws has defined harsh penalties for pilferage or replaced enroute of transshipment of goods without payment of duty.

    Federal Board of Revenue (FBR) issued Customs Act, 1960 updated till June 30, 2019 incorporating changes brought through Finance Act, 2019.

    According to the customs laws

    If any goods which are loaded for transshipment, are pilfered, replaced en-route or failed to reach the port of destination, or any person transships goods not allowed to be transshipped;

    Then such goods and the conveyance illegally carrying these goods shall be liable to confiscation and any person including the custodian involved in the offence and the bonded carrier shall be liable to a penalty not exceeding ten times the value of the goods and he shall further be liable, upon conviction by a Special Judge, to imprisonment for a term not exceeding seven years.

    If any person contravenes any rule relating to transshipment other than mentioned above;

    Then such person including the custodian and the inland carrier shall be liable to penalty not exceeding five hundred thousand rupees or three times the amount of duties and taxes involved.

    Under Section 121 of the Act, the transshipment of goods without payment of duty has been allowed.

    Section 121: Transshipment of goods without payment of duty

    Sub-Section (1): Subject to the provisions of section 15 and the rules, the appropriate officer may, on application by the owner of any goods imported at any customs-station and specially and distinctly manifested at the time of importation as for transshipment to some other customs-station or foreign destination, grant leave to transship the same without payment of duty, if any, chargeable on such goods with or without any security or bond for the due arrival and entry of the goods at the customs-station of destination:

    Provided that at customs-station where the Custom Computerized System, is operational, the system may automatically authorize transshipment to other customs-station subject to risk selectivity criteria.

    Sub-Section (2): The Board may, subject to rules and such conditions as it may deem fit to impose, authorize certain carriers to transport goods under the multimodal, scheme. Goods transported under the multimodal scheme shall be specially and distinctly manifested at the time of importation as for transshipment to some other customs-station or foreign destination and shall not –

    (a) require distinct permission for transshipment from the customs-station of first entry into the country to be transported to the customs-station of destination. The principal carrier issuing the multimodal bill of lading or air way bill will be responsible for the sanctity of the cargo during transportation between the customs-station of first entry into the country to the customs-station of destination; and

    (b) be subject to the risk management system at the customs station of first entry.

    Sub-Section (3): The Board may, subject to such conditions as it may deem fit, grant license to any carrier to carry goods under the multimodal scheme.

  • Bank Alfalah declares Rs9.24 billion net profit for period ended Sept 30

    Bank Alfalah declares Rs9.24 billion net profit for period ended Sept 30

    KARACHI: Bank Alfalah Limited has declared net profit of Rs9.24 billion for the period ended September 30, 2019 as compared with Rs8.63 billion in the same period of last year, depicting an increase of 7.1 percent.

    The Board of Directors of Bank Alfalah Limited in its meeting held on October 18, 2019, in Abu Dhabi, approved the Bank’s unaudited interim financial statements for the period ended September 30, 2019, said a statement on Saturday.

    The bank’s pre-tax profits grew by 16 percent from a year ago, amidst challenging operating environment.

    The bank earned post-tax profit of Rs 9.242 billion or Rs. 5.20 per share, up from a profit of Rs 8.629 billion or Rs. 4.87 per share despite super tax charge levied for 2017 through the mini budget in 2019, the statement said.

    Revenue was up by 29 percent from a year earlier. Higher spreads along with improved average deposits, rising average advances and effective balance sheet management have contributed to a strong rise in net interest income. Fee and commission income stood 12 percent higher than same period last year. Gain realized on government securities last year and bearish stock market sentiments during the first half of 2019 are the reasons behind lower capital gains and impairment charge.

    Administrative expenses increased by 21 percent against the corresponding reporting period. Main factors behind this are technology, marketing, deposit protection insurance which is a new levy, new initiatives like branch openings along with overall impact of inflationary adjustments and PKR devaluation. The cost to income ratio of the Bank has improved to 53 percent from 56 percent for the same period last year, as a testament to Bank’s focus on cost control.

    The Bank continued its focus on increasing no cost deposits with CASA mix improved to 80 percent as at Sep 30, 2019 compared to 77 percent as at Dec 31, 2018.

    Credit performance remained strong across businesses. The bank’s gross advances were reported at Rs. 490.664 billion, down by 5 percent being seasonal impact. Alongside, we continue to optimize our usage of capital and liquidity across the Bank.

    At September end, the bank remains adequately capitalized with CAR at 16.87 percent.

    Commenting on the Bank’s performance over the quarter, Nauman Ansari, CEO, Bank Alfalah said, “Although, the importance of the branch in attracting and retaining customers would remain, however, the retail banking industry is fast embracing a mobile-centric customer experience. Bank Alfalah’s investment in both, branches and digital technologies, has increased meaningfully due to consumers’ constantly evolving demands.”

  • MCC Islamabad announces auction of vehicles on Oct 22

    MCC Islamabad announces auction of vehicles on Oct 22

    ISLAMABAD: Model Customs Collectorate (MCC) Islamabad has announced auction of vehicles on October 22, 2019 including those announced by the prime minister under austerity measure.

    List of vehicles to be offered for auction on October 22, 2019 at State Warehouse:

    01. Mercedes Benz Car E280CDI Model 2006, Chassis No. WDB211020B006418

    02. Commando Jeep, Model 1989, Chassis No. E825-90320

    03. Toyota Corolla Spacio Car Automatic (Semi Bullet Proof) Model 2009, Chassis No. ZZE142-7403600

    04. Toyota Corona Car, Model 1998, Chassis No. SB153ABN00E012424

    05. Toyota Passo Car, Model 2004, Chassis No. KGC10-0022583

    06. Toyota Mark-X, Model 2005, Chassis No. GRX120-0041595

    07. Toyota Cressida, Model 1991, Chassis No. RX80-0021897

    08. Toyota Vitz Car, Model 2004, Chassis No. SP10-0131039

    09. Toyota Corolla Car, Model 2008, Chassis No. ZZE142-7401050

    10. Honda Motorcycle 125, Model 2012, Chassis No. U308915

    11. Mitsubishi Pajero, Model 2000, Chassis No. JMYONV460WJ001099

    12. Toyota Hiace, Model 1999, Chassis No. LH1140029610

    13. Toyota Land Cruiser, Model 2003, Chassis No. JTEBK29J60003281

    14. Toyota Land Cruiser, Model 2004, Chassis No. JTEBK29J500011811

    15. Toyota Hilux Pickup, Model 2002, Chassis No. JTFDEEE626100094494

    16. Toyota Cammary, Model 2005, Chassis No. JTDBF38K600169924

    17. Toyota Hiace, Model 2005, Chassis No. JTFJK02P100001190

    18. Toyota Mark-X, Model 2005, Chassis No. GRX120-002992

    19. Toyota Land Cruiser, Model 1995

    20. Toyota Crown, Model 1993

    21. KIA Sportage, Model 2005

    22. Toyota Corolla, Model 1999

    List of PM House Vehicles for auction to be held on October 22, 2019

    01. BMW Car 760U, Model 2014, Chassis No. CH-WBAHP42000DY99225

    02. BMW Car 760U Model 2014, Chassis No. CH-EBAHP42020DY99226

    03. Toyota Land Crusier, Model 2008, Chassis No. JTECB01J301032994

    04. Toyota Land Cruiser, Model 2008, Chassis No. JTEEV73J400002043

    05. Mercedes Benz Car (Protected), Model 2005, Chassis No. WDB-2201752A473693

    06. Mercedes Benz Car (Protected), Model 2005, Chassis No. WDB-2201762A457073

    07. Mercedes Benz Car (Protected), Model 2005, Chassis No. WDB-2201752A476036

    08. Mercedes Benz Car (Protected) Model 2005, Chassis No. WDB-2201752A475123

    09. Stretched Limousine Car (Protected) Model 2005, Chassis No. WDB-2201752A457643

    10. Toyota Lexus Jeep (Protected), Model 2005, Chassis No. JTJHT00W633531475

    11. Mercedes Benz Car (Protected) Model 2005, Chassis No. WDB-2201762A457435

    12. Mitsubishi Lancer S/Saloon, Model 1994, Chassis No. CSNCBIRU00812

    13. Lexus Jeep, Model 2006, Chassis No. JTJHT00W564013596

  • SBP urged to direct banks for accepting sales tax refund bonds

    SBP urged to direct banks for accepting sales tax refund bonds

    KARACHI: The business community has urged State Bank of Pakistan (SBP) to issue directives to banks for accepting sales tax refund bonds in order to ease hardship in liquidity issues, especially for the exports.

    Karachi Chamber of Commerce and Industry (KCCI) in this regard wrote a letter to SBP Governor Reza Baqir and apprised him about the government papers, which were issued by the Federal Board of Revenue (FBR) against the stuck up refunds, but despite inclusion in the Sales Tax Act, 1990 the banks were not accepting those.

    Agha Shahab Ahmed Khan, President, KCCI in the letter said that due to liquidity crunch the exporters had no option but to curtail their production and were trying to maintain their share in the existing international market.

    “The situation has worsened to such an extent that our exporters simply cannot explore any new market to raise the exports due to lack of funds which, if not timely addressed, is likely to have a negative impact on Pakistan’s economy which is already under immense pressure and is struggling hard to narrow the current account deficit.”

    He said that the Federal Board of Revenue (FBR) has issued Bonds to the claimants and as per provisions of section 67-A of the Sales Tax Act-1990, these bonds shall be traded freely in the Country’s secondary markets and they will be accepted by the banks as Collateral.

    “However, despite specific directions in the relevant Act, these bonds are neither being traded freely in the market nor being accepted by the banks, creating severe liquidity problems for the exporters who are unable to finish their export orders, hence the situation was likely to shrink the overall exports and may also result in further depreciation of the desperately Foreign Exchange reserves of the country which requires Governor State Bank’s indulgence.”

    He stressed that the State Bank has to ensure compliance of the statutory provisions as soon as possible. “Almost a month has passed so far but no relief has been provided to minimize the grievances being faced by the exporters.”

    He was of the opinion that the exporters were already going through the toughest time due to ‘Creative Destruction’ which has made many Pakistani products obsolete in the international markets whereas they are terribly suffering due to high cost of doing business, stagnant industrial activities, the highest ever inflation and many other issues particularly the stuck up refund claims that needs to be resolved and the claimants must get their legitimate refunds on top priority.

  • FPCCI hopes Pak-China FTA Phase II to be instrumental for bilateral trade

    FPCCI hopes Pak-China FTA Phase II to be instrumental for bilateral trade

    KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) hoped that the second phase of China-Pakistan Free Trade Agreement (FTA) will be instrumental in enhancing the bilateral trade to its optimum potential.

    FPCC president Engr. Daroo Khan Achakzai in a statement on Saturday appreciated the strenuous efforts made by the Prime Minister and his team in preparation of long awaited China-Pakistan Free Trade Agreement (CPFTA) – II in consultation and consensus of all the stakeholders and making it operational w.e.f. December 1, 2019 which will witness Chinese investment in all sector.

    The FPCCI Chief hoped that the CPFTA-II would be instrumental in enhancing the bilateral trade to its optimum potential, exploring the new areas of joint ventures, transfer of Chinese technology to Pakistan as it had thin industrial based as compared to China, broadening and protecting indigenous industries and improving Pakistan’s trade balance with its counterpart.

    He recalled that under FTA Part-I Pakistan had benefitted to the tune of only 4 percent whereas rest was derived by the China.

    While commenting on the statement of the Advisor to the PM on Commerce, Textile, Industries and Production and Investment published in some section of newspapers, he clarified that FPCCI has always advocated / supported the decisions of the government in the best interest of Business Community and flourishing of business environment to make Pakistan economically stable and sound.

    Being apex body of trade & industry of Pakistan FPCCI has all the capability and expertise to contribute in government efforts in expansion of all economic sectors such as manufacturing, investment, export etc. He said that the FPCCI status and its role should not be undermined as it has representation all members of trade and industry on its board across the country.

    He also hailed the efforts of the government in the development plan of Balochistan and KPK under CPEC which will definitely eradicate their economic issues particularly unemployment and poverty and will bring least developed rural areas of Balochistan and KPK at par with the other part of Pakistan.

  • Weekly Review: Market may be range bound on FATF decision

    Weekly Review: Market may be range bound on FATF decision

    KARACHI: The Stock market may be range bound next week owing to owing to decision of Financial Action Task Force (FATF) related to measures taken by Pakistan for prevention of money laundering and terror financing.

    Analysts at Arif Habib Limited said that the market to be range bound next week. Pakistan may have narrowly escaped being blacklisted, but the FATF has tasked the government to address outstanding issues by Feb’20, in order to avoid being placed on the black list.

    With many financial results to be announced in the coming week, the analysts expect activity to be accordingly influenced.

    The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) is currently trading at a PER of 5.8x (2020) compared to Asia Pac regional average of 13.3x and while offering DY of ~0.9 percent versus ~1.8 percent offered by the region.

    The market commenced on a negative note this week primarily due to uncertainty over the FATF outcome from the meetings held this week.

    During the week investor sentiment improved after three countries (China, Turkey and Malaysia) voted in favor of Pakistan, which eventually helped save the country from being blacklisted by FATF.

    However, Pakistan still remains on grey list of FATF. Weekly return turned negative after a 2 week bull run with the KSE-100 index closing at 33,870 points, shedding 606 points (down by 1.8 percent) WoW.

    Sector-wise positive contributions came from i) Fertilizers (99 points), ii) Food & Personal care products (15 points), and iii) Chemical (14 points) while negative contributions were led by i) Banks (279 points), ii) Cement (89 points) and iii) E&P Companies (78 points). Scrip-wise negative contributions were led by HBL (111 points), UBL (84 points), LUCK (65 points), HUBC (58 points) and POL (57 points).

    Foreign selling continued this week clocking-in at USD 2.1 million compared to a net sell of USD 4.2 million last week. Selling was witnessed in Commercial Banks (USD 3.4 million) and Exploration & Production (USD 1.0 million).

    On the domestic front, major buying was reported by Individuals (USD 8.4 million) and Banks / DFIs (USD 5.4 million). Average Volumes settled at 140 million shares (down by 51 percent WoW) while average value traded clocked-in at USD 30 million (down by 47 percent WoW).

  • Overseas Pakistanis can bring vehicles under three schemes

    Overseas Pakistanis can bring vehicles under three schemes

    KARACHI: Pakistani nationals residing abroad including dual nationals can import old and used vehicles into Pakistan under three different schemes.

    Federal Board of Revenue (FBR) said that these schemes are included: Personal Baggage; Gift Scheme; Transfer of Residence.

    The FBR further said cars not older than 03 years and other vehicles not older than 05 years can be imported under these schemes.

    The structure of duty and taxes under these 03 schemes remains the same.

    Motorcycles and Scooters can only be imported under Transfer of Residence Scheme, the FBR said.

    Students receiving remittance from Pakistan, non-earning members of the Pakistani nationals living abroad and those who have imported, gifted or received a vehicle in past two years are not eligible under these schemes.

    Old and used Vehicles of Asian Makes under these 03 schemes can be imported against the payment of the following amounts:

    01.Upto 800 ccUS$ 4,800
    02.801cc to 1000ccUS$6,000
    03.From 1001 cc to 1300ccUS$13,200
    04.From 1301cc to 1500ccUS$18,590
    05.From 1501cc to 1600ccUS$22,550
    06.From 1601cc to 1800cc (Excluding Jeeps)US$27,940

    Depreciation in duties & taxes at the rate of 1% per month is admissible according to the age of the vehicle.

    The FBR said that 50 percent exemption from duty & taxes is admissible on import of Hybrid Electric Vehicles (HEVs) of engine capacity up to 1800cc and 25 percent exemption from duty & taxes is admissible on import of HEVs of engine capacity from 1800cc to 2500cc.

    IMPORT OF DUTY FREE CAR FOR DISABLED PERSONS
    Duty free import of a car of engine of capacity up to 1350 cc in new condition to disabled person subject to recommendations of the Federal Board for Disabled Persons.

  • Penalties for smuggling under Pakistan’s customs law

    Penalties for smuggling under Pakistan’s customs law

    KARACHI: Award of death sentence has been prescribed for smuggling of narcotic drugs under Customs law of Pakistan.

    The Federal Board of Revenue (FBR) updated Customs Act, 1969 updated till June 30, 2019 which explained penalties for different penalties.

    According Customs Act, 1969:

    • If any goods be smuggled into or out of Pakistan:

    Such goods shall be liable to confiscation and any person concerned in the offence shall be liable to a penalty not exceeding ten times the value of the goods; and upon conviction by a Special Judge he shall further be liable to imprisonment for a term not exceeding fourteen years and to fine not exceeding ten times the value of such goods:

    Provided that, in the case of such goods as may be notified by the Federal Government in the official Gazette, the sentence of imprisonment shall not be less than five years, and the whole or any part of his property shall also be liable to confiscation in accordance with the provisions of the Prevention of Smuggling Act,1977.

    • If the smuggled goods are narcotics drugs, psychotropic substances or controlled substances,-

    such goods shall be liable to confiscation and any person concerned in the offence shall be liable to –

    (a) if the quantity of the narcotic drug, psychotropic substance of controlled substance is one hundred grams or less;

    • imprisonment which may extend to two years, or with fine, or with both;
    • imprisonment which may extend to seven years and shall also be liable to fine;

    (b) if the quantity of the narcotic drug, psychotropic substance or controlled substance exceeds one hundred grams but does not exceed one kilogram;

    death or imprisonment for life, or imprisonment for a term which may extend to fourteen years and shall also be liable to fine which may be up to one million rupees;

    (c) if the quantity of the narcotic drug, psychotropic substance or controlled substance exceeds the limit specified in clause (b);

    Provided that, if the quantity exceeds ten kilograms the punishment shall not be less than imprisonment for life.

  • SECP softens regulatory regime for rating companies

    SECP softens regulatory regime for rating companies

    ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) has softened regulatory regime for credit rating companies through amendments in the Credit Rating Companies Regulations, 2016.

    A statement issued on Friday, the SEPC said that Credit Rating Agencies (CRAs) play vital role in development of financial markets and conduct independent, professional and impartial assessment of the credit risk associated with a particular instrument or a corporate entity.

    The Securities Exchange Commission of Pakistan, to provide more conducive regulatory environment to Credit Rating Companies (CRCs) has introduced amendments in the Credit Rating Companies Regulations, 2016.

    The amendments have been designed while considering the dynamics of local industry and international best practices. The changes in regulatory framework aim at providing ease of doing business and promoting rating business without compromising quality of ratings.

    To provide the ease of doing business and reduce cost of business, the SECP has abolished the requirements for disengagement period of two years for private ratings, submission of annual accounts of associated concerns and obtaining documents relating to default status of associated concern.

    In addition, the requirements for submission of industry specific studies, additional copies of application, submission of updated resume, and dissemination of the financial statements of CRCs on their website also removed. In order to reduce cost of doing business, the SECP has waived fee to be paid at the time of permission and renewal of license. Further, the fee at the time of grant of licnese has been reduced from Rs1,000,000 to Rs100,000 only.

    To encourage new professional entrants with extensive research experience, individuals have been allowed to hold 40% of shareholding of Credit Rating Company.

    To ensure that CRCs focus on their core function, CRCs have been allowed to outsource their internal audit and compliance functions to independent chartered accountants firms.

    The regulations would result in reducing regulatory burden on CRCs with special emphasis upon building structural strength leading to enhancing the credibility of processes and procedure associated with the credit rating.