KARACHI: Customs Valuation Director General Syed Tanveer Ahmed has revised the customs values of water dispenser with mini refrigerator and without mini refrigerator.
The DG issued Order-in-Revision Order against M/s Midas International, which challenged Valuation Ruling No.910/2016 issued under Section 25-D of the Customs Act, 1969.
This revision petition stated that the department has determined and fixed the customs value of water dispenser (hot & cold) of China origin with mini refrigerator at $60.00 per piece by adopting method prescribed under section 25 (9) of the Customs Act, 1969.
The petitioner briefly stated that the petitioner entered into contract dated January 10, 2016 of China based company for import of 3720 pieces of water dispenser at unit price $48.00 per piece. The consignments earlier imported parts of the said contract were supplied by the exporter at final destination Lahore at unit value $50.00 per pc and were being released by applying Valuation Ruling 282/2010 dated December 08, 2010.
The respondent issued impugned valuation ruling dated August 15, 2016 under which the value of water dispenser was fixed at $60.00 per pc. A consignment of water dispenser containing 372 pc part of contract recently imported at value $50.00 per pc vide commercial invoice and packing list both dated July 26, 2016. The consignment of the petitioner was shipped reached at Lahore dry port and it was informed by staff of respondent that the value of water dispensers has been determined at $60.00 per pc as per the valuation ruling.
The petitioner added that a meeting was held on July 25, 2016 with request to submit the requisite documents i.e. invoices, copy of contract, sales tax etc. No documents were submitted on or even after the said scheduled meeting. The meeting was attended by the importers and representative of M/s. Fluid Technology International (Pvt) Ltd., and the officers from field formations. M/s Fluid Technology International was of the view that the value of hot & cold water dispensers have slightly increased in the international market as compared to the values determined in the existing valuation ruling and this mainly depends upon order of huge quantity and discount of any sort offered by Chinese suppliers.
DG Syed Tanveer Ahmed in his order stated that, no one appeared in last two hearings. Ample time was given. The record shows that the market inquiry reveals prices of dispenser and refrigerator between Rs 14000-17500, whereas the prices of dispenser range between Rs.11000 to 14000. The work back sheet shows that margin of 15 percent was given to retailer instead of routine 10 percent margin done in all calculations. The miscellaneous charges were also calculated on higher side.
In view of above, the calculations were again done and value for water dispenser with mini refrigerator China origin fixed at $70, while value for water dispenser without mini refrigerator has been fixed at $62.
