While customs officials are apprehensive that they will have to be on their toes, bullion traders are unhappy that high duty will push up attempts to smuggle in gold by evading taxes and will lead to loss of jobs for local goldsmiths.Jewellers say smugglers, couriers and middleman can make as much as Rs 1,800 for every 10g of gold imported (6% of Rs 30,000).“With imports of 50kg, the margins can be as high as Rs 1 crore,” said a jeweller who did not want to be named. Jewellers say the government has seized close to 900kg of unaccounted gold in the last year.Prithviraj Kothari, managing director, RiddiSiddhi Bullions, said, “It will have a big impact on the bullion sector.The increase comes to approximately Rs 60,000 per kg of gold. There will be a difference of 7% between international and domestic prices of the yellow metal. This may lead to rise in malicious activities to import gold and jewellery. In turn, it will lead to an increase in unemployment among skilled artisans — around two million people depend on this sector for their livelihood.”Consumers will have to pay Rs 60 more per gram from Tuesday morning. “The wedding season has just begun and the hike will affect purchases,” said N Ananthapadmanabhan, regional chairman, All India Gems and Jewellery Trade Federation.Jewellers also anticipate under-reporting of business. “Many transactions will take place outside the books and such cash transactions without bills will not reflect in the overall turnover of the retailer,” he said. Gold prices in Chennai closed at Rs 30,715 (10g, 24 carat) on Monday.
Tobacco Smuggling: Bill To Recover 80% Of Revenue Losses
The Government onWednesday estimated that it will recover 80 per cent, or $20 million, of the revenues it loses annually to tobacco smuggling via its Excise Stamp initiative, and disclosed it was looking at similar measures to combat illegal alcohol imports.Michael Halkitis, minister of state for finance, revealing that the Government lost $25 million per year in revenues to illegal tobacco (cigarette and cigar) imports, told the House of Assembly that the new requirements might also deter the smuggling of other contraband into the Bahamas.Kicking off debate on the long-awaited Excise Stamp (Tobacco Products) Control Bill, which was first flagged in the 2012-2013 Budget last May, Mr Halkitis said all tobacco-related imports, or products manufactured locally, would now be affixed with a Stamp to confirm due Excise Taxes had been paid.This would enable Ministry of Finance personnel, or other enforcement inspectors, to enter stores and determine instantly whether taxes had been paid.If tobacco products did not bear the Excise Stamp, vendors would be subject to further investigation and exposed to potential sanctions/penalties.“It has been estimated that $25 million per year in Excise Tax revenue was being lost to smuggling,” Mr Halkitis said. “That is the estimate of what was being lost to the authorities.“It is estimated by the experts that, let’s say $25 million is a conservative number, with effective implementation of the Excise Stamp that 80 per cent [of this sum] can be collected. That is, in this case, $20 million.“If the estimates are correct, and we effectively implement this Act, we’ll be looking at an extra $20 million amount into the Public Treasury. We are hopeful that is the case.”While some might consider $20 million to be a relative ‘drop in the bucket’ when set alongside the Government’s projected $550 million deficit for the 2012-2013 fiscal year, every little helps for a cash-strapped Treasury, and an administration that continued to be hard-pressed to meet all its bills.Meanwhile, Mr Halkitis said the Government was looking at “introducing legislation to reduce the smuggling of alcohol” products, chiefly beer, into the Bahamas.He suggested that the Government was looking at something similar to the Excise Stamps it plans to affix to all tobacco products, adding that it had been estimated that the Government was also losing “millions of dollars” to beer/alcohol smuggling.No data was provided on the level of alcohol smuggling, although Commonwealth Brewery’s initial public offering (IPO) document from May 2011 placed the ‘grey market’ and parallel imports as having a 15-20 per cent share of the total Bahamian market.Elsewhere, Mr Halkitis said the Government also aimed to crack down on smuggling/tax evasion that was facilitated by inter-island shipping.“We are also advised that there is a problem with the importation of goods into the Family Islands, and having them shipped into New Providence,” he added. “We are increasing our surveillance activities, and are looking at reporting those type of shipments to eliminate that loss.”Back on the tobacco angle, Mr Halkitis said the Bill fitted in with the Government’s strategy of improving revenue administration and collection, closing loopholes rather than increasing taxes or introducing new ones.“The cost of operating government continues to rise, so we must find new avenues, new revenue streams,” Mr Halkitis said.“It involves not imposing new taxes on the public, but improving the measures we have in place already to increase the flow of money into the Treasury. The demands on the Public Treasury continue to increase.”The Minister added that the Government was continuing to face pressure from public sector workers, and their trade unions, for wage and benefit increases despite the fiscal position.And the recession had also increased the burden on the public education and healthcare systems, as children were pulled out of private schools and health insurance either dropped or lost with unemployment.
#“We do not believe the solution is the imposition of new taxes,” Mr Halkitis said, “If you impose new taxes in recessionary times that might exacerbate the situation.”He added that, given “the structure of the economy”, the Government had “very little wiggle room” to make serious spending cuts. Achieving these would require public sector lay-offs and/or reduced benefits.Mr Halkitis also took a swipe at the former Ingraham administration, saying its response to the recession was “less than optimal”, with the national debt reaching levels “where there is serious concern”.Ryan Pinder, minister of financial services, in his contribution to the House debate said tobacco products – given that they are seen as socially harmful and detrimental to health – attract a 220 per cent Excise Tax rate.He added that exports, vital to companies such as Graycliff, which exports 70 per cent of its tobacco products, were not subject to Excise Taxes.Mr Halkitis said tobacco importers and manufacturers had agreed the Bill was “the way forward, is doable and agreeable to all stakeholders”.Under its requirements, all importers and manufacturers are required to register with the Ministry of Finance. To obtain registration, they must be up-to-date on Business Licence and National Insurance Board (NIB) payments.The diplomatic community and persons importing tobacco for their own use will be exempt from the Excise Stamp and registration requirements.To minimise supply chain disruptions and delays, Mr Halkitis said major Bahamian importers could pay their Excise Tax in advance, purchase the Stamps and send them to the manufacturer to be affixed at source.The Stamps’ design will be approved by the Ministry of Finance, which will be able to track them electronically to confirm the date tobacco products were imported, and when the tax was paid.No tobacco manufacturing equipment will be allowed into the Bahamas unless it is imported by a registered tobacco producer/manufacturer.
http://www.tribune242.com/news/2013/jan/24/tobacco-smuggling-bill-to-recover-80-of-revenue/
Lear MoreRomania Turns up Heat on Cigarette Smuggling
Armed with state-of-the-art sensors and surveillance cameras, authorities in Romania say they are gaining the upper hand against rampant cigarette smuggling along the country’s porous border with Ukraine. Ukraine, to the north, is a hotbed of smugglers seeking to profit from vastly higher prices on the other side of the rugged border. A pack of cigarettes rolled in makeshift workshops can sell for as little as half a euro — and the price immediately doubles over the northern Transylvania and gets dramatically higher the closer they get to western capitals. Some 9.7 million packs of cigarettes were confiscated in 2012 by police, who say they have busted 30 organized gangs. The patrols also stopped over 130 individual smugglers and recovered 268 stolen cars and vans. The turning point in the daily battle — waged in diverse terrain ranging from steppe to rugged mountains— came in July when EU funds totaling some €2 million ($2.66 million) were invested in seismic sensors able to detect footsteps, surveillance cameras and other equipment. Some €9 million worth of cigarettes alone have since been confiscated, officials say.”We used to patrol through extreme weather, through cold and through rain, but the new technology makes our work much easier and the traffic has visibly decreased,” chief agent Olimpiu Breton told The Associated Press. He says the X-ray systems — known as Robo-Scan — are working night and day and can detect whatever may be stashed inside passing trucks. Video obtained by the AP showed officials intercepting an oil tanker, filled with contraband cigarettes.After Romania became an EU member in 2007, life in the quiet northernmost region some 650 kilometers (400 miles) north of Bucharest changed dramatically. Many people went to work abroad; those who remained had little option but to seek easy money. The 1,600 kilometers (1,000 miles) of border make Romania the European state with the longest external frontier. And with it came not just smuggled cigarettes, but also drugs, cars and human trafficking. The smuggling has also been rampant in other Balkan countries, as a result of the wars of 1990s.Struggling uphill alongside his horse, woodcutter Ionut Opris sighed at the thought of what until recently had been a crime zone: “Smugglers are Romania’s biggest thieves! We work hard, in the forest, in rain and cold, for less than €150 per month and pay taxes, while these guys, with their cigarettes, do nothing but steal.”
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Bulgarian customs seize large amount of fake perfumes
Bulgarian customs officers seized large amount of fake perfumes from ‘suitcase traders’ at the Kapitan Andreevo checkpoint, the press office of the National Customs Agency announced for FOCUS News Agency.Some 2,155 fake perfumes and toilet waters, worth more than BGN 200,000, were seized during the weekend. Big part of the illegal replicas bears the logos of popular world brands.Some 1,412 of the fake perfumes were seized after a check on a mini-van with Polish registration, which was travelling from Turkey through Bulgaria to Poland. Earlier authorities seized other 743 fake perfumes and toilet waters from a passenger’s bus with Turkish registration. Three Romanian nationals were arrested.
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Import duty hike to up gold smuggling
CHENNAI: An increase in the import duty on gold, the third in less than a year, is expected to lead to a rise in smuggling of the precious metal into the country. On Monday, the government hiked the import duty on gold from 4% to 6%.Air customs officials speculate that more gold will be smuggled from abroad through airports as import duty is now at its steepest. 
There has been an increase in smuggling of gold through Chennai from Sri Lanka, Singapore,Malaysia and other Southeast Asian countries over the past three years.This is the third time the government has raised import duty on gold. In March 2012, the government doubled import duty on standard gold from 2% to 4%. In January 2012, it increased duty from 1% to 2%. Of the 800 tonnes of gold that India imports every year, one-fourth is accounted for by Tamil Nadu.
Piracy Taking Big Bite out of Books in Spain?
Ebook piracy resulted in €350 million ($467.1 million) in lost revenue for the €3 billion Spanish publishing industry in 2012 (13%-15%), according to a new report from Spain’s Federation of Publishers’ Associations and Spain’s ISBN Agency.The report also said the number of titles published in the country decreased by 8% even while ebook publishing increased — with ebooks now accounting for 22% of all registered titles in the country.Like many studies that seek to measure the economic impact of ebook piracy, this study may fail to account for content piracy that occurs as an alternative to not consuming the content at all — i.e., when the content thief wouldn’t have bought the ebook unless they could get it for free. That may not represent lost revenue for the industry.A popular notion in the ebooks industry in the U.S. is that piracy isn’t much of a problem. Organizations like BitTorrent, which provides a content-sharing technology, frequently cite studies that show piracy has little impact on content industries. At Digital Book World last week, Michael D. Smith, professor of information technology and marketing at Carnegie Mellon University, argued that piracy does in fact effect the ebook industry and that studies that say the opposite are invalid or improperly conducted. Most authors don’t seem to care why piracy occurs — they want to guard against it. When asked in a recent survey about digital rights management software (DRM), which theoretically guards against piracy, a majority of authors want it either strengthened or left alone
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Man arrested for smuggling counterfeit cigarettes in NW
North West Police have arrested a Namibian national on charges of smuggling counterfeit cigarettes. Police spokesperson Brigadier Thulani Ngubane says the suspect was arrested at the Kopfontein border post in Nietverdient near Zeerust. He was arrested after his truck was searched.Ngubane says the suspect will appear in court tomorrow .“We can confirm that as of last night the police once more busted a person who was illegally smuggling illegal cigarettes into the country. These cigarettes were hidden in a truck and about 90 cases of illegal cigarettes were found in the possession of this Namibian driver.”Ngubane says the cigarettes have a street value of more than Rs 500 000. On Friday, Orange Farm police arrested a 46-year old man at his home after he was found in possession of commercial explosives following tip-off from community members. Police spokesperson Maloisane Polo said during questioning the man said they belonged to a friend.Commercial explosives are normally used by criminals for ATMs bombings and are predominantly found in mines. The suspect is expected to appear in court tomorrow.
Lear MoreTraders get Supreme Court notice on imported Samsung goods
The Supreme Court has issued notices on a complaint filed by South Korea’s Samsung Electronics against the sale of imported Samsung-branded products without its authorisation, an issue which has major implications for trade and business in the country. The company claimed that such sales by traders was an infringement of its trademark, whereas local traders claimed they were within their rights to sell goods legally bought abroad and imported into India.Samsung was represented by senior counsel T R Andhyarujina, while Shyam Divan appeared on behalf of local traders who were importing and selling printers bearing the Samsung trademark without the company permission. A three-judge bench, led by Chief Justice Altamas Kabir, issued the notices which will have to replied to within four weeks. Samsung had earlier sought an order from a lower court seeking an injunction restraining the traders from infringing and diluting its trademarks, but failed. The Delhi High Court had on October 3, 2012, ruled that local traders can import goods bearing a registered trademark into India and sell it further without any authorisation from the registered proprietor. It held that such sales were legal under the Trade Marks Act, 1999.
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100 pumps with fake ISI mark seized
As many as 100 pumps were seized from a pump company at Peelamedu by Bureau of Indian Standard (BIS) officials in Coimbatore on Thursday, for selling pumps with fake ISI certification.BIS Coimbatore branch head, M Sadasivam had received information that Jaibajrang Pump Company at Vilankurichi road near Thanneerpandal in Peelamedu had been selling pumps with ISI mark. However, the company did not obtain the ISI ark. He instructed BIS enforcement director, V Ravichandran and his team to take appropriate action against the company on Thursday.The team conducted surprise check at the company and seized 100 self priming pumps worth Rs 4 lakh and 1,000 cartons used for packing the pumps. “The company had four brands in the name of Gem, Star, Rain Tech and Medini. They used ISI mark on all pumps and sold them to the public. But the company did not get ISI certification. They violated the rules and regulation of BIS,” said Ravichandran.The pump company will be booked under section 11 of BIS Act. The owners of the company would face one year imprisonment or penalty of Rs 50,000.He also added that stringent action would be taken against the pump sellers who are using ISI mark without getting certification.
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Induscreed denies manufacture, supply of sub standard drugs
Accused of manufacturing and supplying sub standard drugs to hospitals and medical units in the State, Induscreed Pharmaceuticals on Wednesday clarified that corrective measures had been taken since November 20, 2012 and renovation of manufacturing units is underway as per the approved drawing of the Assistant Drug Controller of the Health department.The company situated at the Industrial Estate, Lawmali also said that not a single production of medicine is being carried out at present.The clarification came from the Induscreed after Civil Society Women’s Organization (CSWO) carried out an inspection recently and found that the license which was issued earlier to the company was cancelled in 2003 due to alleged malpractices.In a statement issued here on Wednesday, the chief executive of Induscreed said that the license of the factory was never cancelled in 2003 but the production was stopped in 2006 due to technical reason but again the production resumed in 2007 as per the direction of the Assistant Drug Controller after completion of formalities.Reacting to a photo appeared in the local dailies regarding manufacturing of medicines, the company claimed that the workers were only cleaning the empty bottles.Earlier, Kharshiing had alleged that the medicines manufactured by Induscreed were not as per the prescribed standards after a test was conducted in this regard.However, the factory has termed the allegations as false and meant to tarnish the image of the only local medicine manufacturing unit of the State.The company also said that it has always adhered to the laid norms as no company could manufacture any medicine without following the norms of the Government as the medicine has to pass many tests.It was reported that the company did not adhere to the laid down norms and conditions regarding the manufacture of medicines like Albendazole Suspension (de-worming medicine), Paracetamol (mild analgesic), liver tonic, furazolidone oral suspension (antibiotic used to treat infectious diarrhea) and Povidone Iodine Solution (stable chemical complex of povidone and elemental iodine possessing anti-bacterial activity.Kharshiing, while quoting a CAG report, had also claimed that the test check of records revealed that the commercial firm located at Shillong imported 28,000 bulk litres of spirit, 24,000 bulk litres of absolute alcohol and 4,000 bulk litres of methylated spirit in four consignments between April 28, 2006 and May 27, 2008 on which import fee of Rs 1.92 lakh, though realizable, was not realised by the Department although the rules do not permit such exemptions.The company, however, said it never imported or used Methyl Alcohol but only pharmaceutical Dehydrated Alcohol Gradfe -1 which was approved for manufacturing of specified medicines.Moreover, necessary excise duty was also paid, the company added.
Lear MoreFake Alcohol Floods Kigali Market
VENTURES AFRICA – Counterfeit alcohol has flooded the market in Gitega, Kigali, threatening other genuine brands and people’s lives, Rwanda’s News Times has reported.This, if it is not tackled sooner, could negatively impact the earnings of established brewers operating in the central African country.Residents and local authorities said the fake brews were made locally, but bear brand names of imported genuine brands.They identified the common counterfeit brands as FURAHA, Chief, Senate, Bond 7 and Coffee. There are genuine brands imported from Uganda, but their containers are recycled by counterfeiters to dupe the people.The residents accused yet-to-be identified unscrupulous business men as being behind the illegal trade.Idrissa Nkurunziza, the executive secretary of Gitega Sector, said they were aware some traders were dealing in sub-standard brews, but had not yet made any arrests.Gitega Sector is made up of what used to be Gitega and Cyahafi Sectors. It consists of six Cells: Akabahizi, Kora, Akabeza, Kigarama, Kinyange and Gacyamo.This Sector has a common border with the Sectors of Rwezamenyo, Kimisagara, Muhima and Nyarugenge. It has a population of more than 40.000.“We are working on it. In case we find any bars selling counterfeited alcohol, the owners will be arrested and charged in courts of law for endangering people’s lives and profiteering from illegal products,” he said.The director of quality assurance at the Rwanda Bureau of Standards, Phillip Nzaire, said they test all products entering the country, adding that in case they discover sub-standard or illegal ones, they confiscate them.
“We did not know there are counterfeit brews in the country. However, we will work with the Police and residents to solve the problem,” he said, adding: “It is easy to change containers of imported alcohol brands.”
http://www.ventures-africa.com/2013/01/fake-alcohol-floods-kigali-market/
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