Livestock smuggling to Iran continues unabated: issue taken up with Balochistan CS

Customs authorities in Balochistan are facing serious problems in controlling smuggling of livestock to Iran following new techniques adopted by smugglers, transporting animals easily by obtaining NOCs from the local administration of various Balochistan districts.

Sources told Business Recorder here on Wednesday that the Customs authorities have taken up the issue with the Chief Secretary, Balochistan to resolve it through strict administrative measures. Customs department has requested the CS to direct concerned district authorities to stop issuing NOCs for check misuse of the facility. The NOCs have been obtained by smugglers with the declaration that the livestock would be locally consumed, but the same is being smuggled to Iran.

Taking serious notice of the situation, MCC has decided to approach the Federal Board of Revenue (FBR) and FBR Member Customs to immediately intervene for taking action through anti-smuggling measures.

Details of the issue revealed that Model Customs Collectorate Gwadar has initiated a crackdown against livestock smuggling, however to frustrate the efforts of the Collectorate certain livestock smugglers have now adopted a new technique for transportation of their stock that is by obtaining NOCs from the administration of various Balochistan districts.

The district administration of Lasbella, Turbat and Gwadar are issuing NOCs for the intra provincial movement of livestock. This livestock movement pertains to the districts located right at the Pak-Iran Border and wef October 4, 2013 till date, 16 NOCs for 6,559 oxen have been issued by Deputy Commissioner Lasbella, 4 NOCs for 800 oxen issued by Deputy Commissioner Turbat and 5 NOCs for 600 Oxen have been issued by Deputy Commissioner Gwadar.

According to credible sources, all these NOCs are being misused and this livestock is being smuggled to Iran through the in-frequently used land routes between Pakistan and Iran.

In view of the situation, customs authorities have requested that the concerned district administrations may be directed to desist from this practice or in case of a bona fide situation, they may sparingly issue the subject NOCs keeping in view the number of local population of the destination district, its livestock/protein requirements, quantum of its consumption and the physical existence of the breeding farms, sources added.

Copyright Business Recorder, 2013

Agriculture Minister Invites German Companies to Invest in Iran

TEHRAN (FNA)- Iran's Minister of Agricultural Jihad Sadeq Khalilian, who is in Berlin to attend an international conference, said Tehran plans to develop its agricultural sector, and asked German companies to invest in this sector.

Khalilian is in Berlin to attend the International Agriculture Ministers' Summit. 

Addressing a gathering at Iran's embassy in Berlin on Friday, the Iranian minister said the government has allocated $10 billion for investments in the agricultural sector. 

He added that Iran welcomes the presence of German food and agriculture companies in Iran, and made clear that food exports for Iran were not on the western sanctions' list. 

He also stressed that Iran could serve as a transit country for German firms to expand their agricultural cooperation in the region. 

Late in October, Media reports said that the volume of the bilateral trade exchanges between Iran and Germany is on the rise despite the US-led western sanctions on Iran, and the volume of trade transactions between the two countries is getting close to the eye-catching figure of 4bln euros for 2012. 

Germany is on the course to increase its bilateral trade volume with Iran to 4bln euros for 2012, the Jerusalem Post reported at the time. 

The volume of trade transactions between the two countries also reached 4bln euros in 2011, it said, noting that the new sanctions have not affected Iran's economy. 

Germany is an important trade partner of Iran. Berlin has long been ignoring the US-led sanctions against Iran. 

The German banking system has also reportedly ignored the US-led western sanctions against Iran several times thus far, it said. 

The flourishing trade transactions between Iran and Germany have frustrated Israeli, American, British and French officials, the newspaper said. 

Original Article Here

PSM proposal on Iran barter deal: Ministry may move summary seeking ECC nod

The Ministry of Production (MoP) is likely to move a summary to the Economic Co-ordination Committee (ECC) of the Cabinet for approval of barter trade of iron ore from Iran in lieu of Pakistani wheat, sources close to CEO Pakistan Steel Mills (PSM) told Business Recorder. 

The sources said Ministry of National Food Security & Research has already conveyed its No Objection Certificate (NoC) if the PSM''s proposal on import of iron ore from Iran in exchange for wheat is accepted by the ECC. PSM has been procuring iron ore from Iran against long-term contracts since 2003. At present two long-term valid contracts are in place which are as follows: (i) M/s Iranian Central Iron Ore Company (ICIOC), working under Ministry of Mines and Minerals - 400,000 tons valid June 2013; and (ii) M/s Ehya Sepahan, a private company, 300,000 tons (F) and 110,000 tons(I) valid up to June 2014. 

The sources said in view of sanctions imposed by the US, banks are hesitant to open LCs in respect of procurement of iron ore from Iran. The shipments against long-term contracts have not materialised on this account. According to sources, GoP has approved the proposal on sale of wheat under barter arrangements to Iran wherein Passco is planning to export 0.1 million tons of wheat @ $ 300 per metric ton at a cost of $ 30 million to Iran. 

The sources said PSM has proposed to the federal government to allow import of iron ore from Iran in exchange for exported wheat as per barter agreement. PSM has assured the federal government that GTC Iran will make payment to ICIOC Iran based on indexation prices of iron ore to be mutually agreed between PSM and ICIOC. PSM has requested that payment to Passco equivalent to $ 30 million (if the entire amount is allocated to PSM) in rupees along with bank charges. Modalities of payment will be agreed between PSM and Passco. 

A four-member delegation of PSM recently visited Iran and held discussions with GTC (Iran), IMIDRO and ICIOC on various subjects. PSM already owes $ 15 million as previous dues since September 2011 to ICIOC which has made it clear that it will not supply iron ore to PSM until old debt is cleared first. 

The Chief Executive Officer (CEO) maintains that in order to balance requirements of paying outstanding dues to ICIOC and urgent resumption of supply of iron ore to PSM, the two issues may not be linked and be tackled simultaneously but separately as GoP has allocated sufficient funds to commence retirement of debt in instalments. 

The Ministry of Commerce which is co-ordinating the possibility of barter between wheat and iron ore will form a committee to ensure that PSM commences payment of dues subject to government approval and concurrence by GTC; it can allocate $ 15 million out of barter of 100,000 tons of wheat to be provided by Passco as covering financial guarantee to satisfy auditors'' requirements against ICIOC/ IMIDRO. But PSM pays for all new shipments directly to ICIOC through its designated beneficiary in Pakistan. 

Alternatively, allocation of $ 15 million where GTC pledges to pay ICIOC for iron ore shipments, PSM on receipt of iron ore would commit itself to pay to Passco Pakistani rupees along with bank charges (to be agreed mutually by Passco and PSM). 

This proposed barter trade deal appears to be uncertain as the Ministry of National Food Security and Research has recently apprised to the ECC that the first consignment of 100,000 is ready for shipment, however, there are issues concerning mode of payment as barter trade in the existing geopolitical scenario was not possible. The ministry has been directed to submit a detailed report on this issue in the next ECC meeting. 

Copyright Business Recorder, 2013