ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday issued rules to make recovery from jewelers and real estate agents under money laundering cases.
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Customs values increased for imported imitation jewellery
KARACHI: Customs values of imported artificial / imitation jewellery have been increased for determination of duty and taxes at the time of customs clearance.
The Directorate General of Customs Valuation has issued Valuation Ruling No. 1509/2021 dated January 27, 2021.
The directorate said that earlier the customs values of artificial jewellery were determined under Section 25A of Customs Act, 1969 through Valuation Ruling No. 1376/2019 dated May 30, 2019.
The directorate general of customs valuation was tasked by the Federal Board of Revenue (FBR) to identify the items/goods where variation with respect to values in exporting countries viz-a-viz import values in Pakistan were observed and where valuation ruling already exist.
Accordingly, a special team was constituted in Directorate General of Customs Valuation, which identified the subject items where vast variations in declarations/specifications were observed.
Accordingly, an exercise was initiated to re-determine the customs values of artificial imitation jewellery under Section 25A of the Customs Act, 1969.
The directorate invited stakeholders to present evidence of the import values of the goods.
The meetings were attended by representatives from M/s. GA Jahangir & Associates authorized by various importers and stakeholders. The point of view heard in detail to arrive at customs values of subject goods.
The stakeholders claimed that their declared values were true transactional values and may be accepted as such. The stakeholders also submitted their proposal regarding values of artificial jewellery but failed to substantiate said values with documentary evidences.
The customs values of following artificial jewellery on import of various origins have been amended:
01. Electroplated white/yellow, without stones/beads:
The customs value enhanced to $3.85/kg from $3.54 on import from China.
The customs value enhanced to $5.40/kg from $4.97 on import from other origins.
02. Electroplated white/yellow, with plastic stones / beads:
The customs value enhanced to $4.40/kg from $4.12 on import from China.
The customs value enhanced to $6.55/kg from $6.12 on import from other origins.
03. Fancy Electroplated white/yellow, with crystal stones/beads:
The customs values enhanced to $12.5/kg from $11 on import from China.
The customs values enhanced to $27.35/kg from $24 on import from other origins.
In the previous valuation ruling a separate rate for imitation jewellery import from India was given. However, in the latest valuation ruling the rate of the goods on import from India has been eliminated.
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FBR sets up body to regulate jewelers, real estate agents
ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday approved a body to regulate transactions by jewelers, real estate agents and accountants under anti-money laundering (AML)/Counter Financing of Terrorism (CFT) laws.
According to an office order, the FBR approved the operationalization of Directorate General of Designated Non-Financial Business and Professions (DNFBPs), with its headquarter at Islamabad within the existing sanctioned strength and budget grant of FBR with immediate effect.
The Designated Non-Financial Businesses and Professions (DNFBPs) are real estate agents, jewelers and accountants.
The FBR issued SRO 924(I)/2020 dated September 30, 2020 related to DNFBPs to comply with conditions under Finance Action Task Force (FAFT).
Under the latest office order, the FBR sets up field formations at Islamabad, Quetta, Gilgit-Baltistan, Lahore and Karachi.
The FBR has assigned additional responsibilities to customs and Inland Revenue officials to operate the Directorate General of DNFBPs.
Dr. Bashirullah Khan (IRS/BS-20) has been assigned additional responsibility of Director General, Directorate General of DNFBPs.
Other officials who have been given additional charge as Director of Directorate General of DNFBPs are included: Asem Iftekhar, (IRS/BS-20) Karachi, Zafar Iqbal Khan (IRS/BS-20) Islamabad, Irfan Javed (PCS/BS-20), Quetta, Rashid Habib Khan (PCS/BS-20) Gilgit Baltistan, Ahmad Kamal (IRS/BS-20) Lahore and Muhammad Tahir (PCS/BS-19) Director (HQ) DNFBPs Islamabad.
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FBR issues SRO to regulate accountants, jewelers, real estate agents under AML/CFT
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Jewelers, real estate agents to maintain register, report suspicious transactions: draft rules issued
ISLAMABAD: Federal Board of Revenue (FBR) has proposed to make mandatory for jewelers and real estate agents to report suspicious transactions. In this regard the FBR issued draft rules through SRO 1320(I)/2019 to make amendments in Income Tax Rules, 2002.
As per the draft rules, the designated persons as jewelers and real estate agents should maintain documents and records, where the value of transaction exceeds Rs2 million in case of immovable properties and Rs one million in other cases.
The FBR said that the designated persons would require to obtain and maintain the following relating to its buyers and sellers, namely:
In case of an individual any of the following documents should be obtained by jewelers and real estate agents:
i. copy of computerized National Identity Card (CNIC) issued by National Database and Registration Authority (NADRA).
ii. copy of National Identity Card for Overseas Pakistanis (NICOP) issued by NADRA.
iii. copy of Pakistan Origin Card (POC) issued by NADRA.
iv. copy of Alien Registration Card (ARC) issued by NADRA, and
v. copy of passport, having valid visa on it or any other proof of legal stay along with the passport (foreign nationals only).
The jewelers and real estate agents also required to keep a list of all such customers where the business transaction was refused or needed to be closed either on account of failure of the customer to provide the relevant documents or the original documents for viewing as required.
Regarding furnishing of information, according to the draft rules, the sale and purchase register for the immediately preceding calendar month shall be uploaded by the designated persons on the IRIS online system within 15 days of the end of the preceding calendar month for transactions.
The draft rules said that the designated persons would mark a transaction as suspicious in the IRIS online system if the person has reason to believe that the transaction or a pattern of transactions of which the transaction is a part:
(a) involves funds derived otherwise than from the business activity or assets declared to the income tax authorities;
(b) is designed to evade any requirement of the Income Tax Ordinance, 2001 or to conceal the beneficial owner or his activity.
(c) has no apparent economic or lawful purpose after examining the available facts, including the background and possible purpose of the transaction; or
(d) involves financing of terrorism, including fund collected, provided, used or meant for, or otherwise linked or related to, terrorism, terrorist acts or organization and individual concerned with terrorism.
According to the draft rules, the designated persons have also been asked to mark as suspicious transaction if the buyer or seller –
(a) frequently changes bank accounts;
(b) uses a bank account other than an account maintained in the name of beneficial owner;
(c) makes or receives payment in cash or primarily in cash; or
(d) maintains a creditor or debtor account with the designated person and instructs the designated person to adjust the balance of his account against a creditor debtor account of another buyer or seller.