KARACHI: The Directorate of Customs Valuation Director General, in its Order-in-Revision (O-i-R) No 93/2015 under Section 25-D of the Customs Act, 1969 against Valuation Ruling No. 648/2014, has remanded back the case to the Customs Valuation Ruling Director to re-examine the case for the issuance of fresh Valuation Ruling and determination of customs value of silk fabrics in accordance with the law.
While, examining the issue, the petitioners and as well as Customs Collectorates may also be associated to consider their technical expertise. All concerned stakeholders may also be associated in the proceeding before drawing out a revised evaluation of subject goods under section 25-A of the Customs Act 1969, the Order further said.
The DG in her O-i-R was of the view that the aforesaid case position has some technical ambiguity in the valuation of subject goods, lacking sound footings. It is also apparently on lower side when evaluated with comparable evidences as cited in the petitioner’s submission.
The aspect whether these evidences are reliable or not, needs a thorough analysis of material evidences in the light of relevant data with a view to including items of other various categories of identical or similar goods.
This brief fact of the case were that the Directorate of Post Clearance Audit, Lahore made audit cases worth about Rs. 940 million against under valuation of silk fabrics cleared form different collectorates. Some of the cases have already been decided in the favor of the directorate.
The director, Directorate of Post Clearance Audit, Lahore was of the view that customs value of silk yarn has been determined at US$ 30 per KG whereas the values of silk fabrics of different types were from US$ 11.50 per KG to US$ 15.40 per KG.
It is not possible that the value of finished goods is less than the value of its raw material. Valuation Ruling regarding silk fabrics was inconsistent with the earlier Valuation Ruling on silk yarn in the field.
In this regard it is submitted that whenever a valuation Ruling is issued, detailed enquiry regarding the goods that is ie. Raw material used in the goods, its origin, trade practices, international prices, options of trade bodies, valuable opinions of chambers, importers contentions, manufacturers opinion are considered and thereafter the Customs values are determined in such a manner that it should be under the ambit of law that is as per methods described in terms of Section 25 of the Customs Act 1969.
On the basis of this complaint, importers were called upon on meeting on November 25, 2013 and March 07, 2014 for the inputs but no one appeared for meeting nor was any written reply received from them. Since the matter was of urgent nature, hence reliance was placed on market enquiry in terms of sub-section 7 of Section 25 of the Customs Act 1969 and prices from different open markets were obtained for crinkle, tissue, shiffon plain/printed and grip silk fabrics and after working out these prices ranging from US$ 11 per KG to US$ 17.50 per KG were determined vide Valuation Ruling number 648/2011.
