KARACHI: Director General Customs Valuation Syed Tanveer Ahmed has issued Order in Revision No. 259/2016 under section 25-D of the Customs Act, 1969 against Valuation Ruling No.827/2016 dated 06-04-2016.
The revision petition was filed by M/s Trade International under section 25-D of the Customs Act, 1969 against customs value determined vide Valuation ruling No.827/2016 dated 06-04-2016 issued under Section 25-A of the Customs Act, 1969.
The petitioner is a regular indenter/importer of paper and paper board from various worldwide sources. The petitioner mainly imports a sizeable quantity of uncoated offset paper for writing, printing and photo copying from Japan against valid performa invoices, commercial invoices and letters of credit. The petitioner possesses excellent record of tax compliance without a single blemish.
During the past few years, the petitioner imported hundreds of tons paper from Japan on actual transaction value and the prices actually paid for the goods when sold. All the consignments were, however, cleared.
The director has issued impugned valuation ruling under section 25(9) of the Customs Act, 1969 without properly appreciating the current evidences produced before him. The petitioner is aggrieved by the value of Japan origin un-coated offset paper for writing and photo copying which has been fixed against actual transaction value of $ 770/MT against the actual transaction value of $ 700-715/MT is higher than actual value) and is also highly aggrieved by the value.
Director General Customs Valuation Syed Tanveer Ahmed in his order stated that I have gone through the record of the case as well as written and verbal submissions of the petitioners and Respondent Department. The petitioner has contested that the impugned Valuation Ruling has been issued under Section 25 (9) of the Customs Act, 1969, without proper appreciating the current evidences produced. The value of Japan origin Uncoated Offset Paper for writing, printing & photocopying fixed at $ 770/MT against the actual transaction value of $ 700-715/MT.
The impugned valuation ruling is highly defective, discriminatory, and illegal of the Section 25(1), (5). (6), (7), (8) & (9) of the Customs Act, 1969, and violation of Section 24-A of the General Clauses Act. Customs values determined by ignoring the guidelines laid down by the Honorable High Court and are binding on each subordinate authority.
In the written and Verbal submissions, Respondent Department stated that in the previous Valuation Ruling the value of different origins of Un-coated Offset paper for Writing printing of Photocopying have already been decreased about 4% to 6% in the existing Valuation Ruling. Paper Merchants Association also agreed during the meeting held in the Department.
Petitioners M/s Trade International, Lahore import documents reflects that it is a related party transaction. Self import made by the petitioner being indenter and percentage of selling commission involved is a part of value which was not declared and added in the transaction made in terms of Sub-Section (2) clause (b)(i) of Section 25 of the Customs Act, 1969. The prayer of the petitioners for the acceptance of transaction value concealing the facts indicate that the petitioner has not come with clean hands. In view of above, the petitioner fails on merits and is rejected accordingly.
