KARACHI: The Directorate General of Customs Valuation has revised the customs value of Submersible Motors through Valuation Ruling No 990/2016 under Section 25A of the Customs Act, 1969.
Customs values of Submersible Motors were determined -under Section 25A of the Customs Act, 1969, vide Valuation Ruling No.318/2011, dated 17-05-2011. The valuation ruling required revision in line with the prevailing prices in the international market. Therefore, the directorate general initiated an exercise for determination of customs values of Submersible Motors. A meeting with stakeholders was held on 03-08-2016.
Importers had been requested to furnish the following documents before or during the course of meeting:
Invoices of imports during last three months showing factual value, Websites, names and E-mail addresses of known foreign manufacturers of the item in question through which the actual current value can be ascertained, C.Copies of Contracts made / LCs opened during the last three months showing the value of item in question. Copies of sales tax Invoices issued during last four months showing the difference in price (excluding duty and taxes) to substantiate that the benefit of difference in price is passed on to the local buyers.
No documents were submitted to the directorate general after the said scheduled meetings. The meeting was attended by the importers and the officers from field formations.
During the course of meeting, the importers were of the view that the values of Submersible Motors of China origin have reduced in the international market as compared to the values determined in the existing valuation ruling, therefore, the values needed downward revision. However, importers did not submit import invoices, sales tax invoices, literature, evidences and other relevant requisite import documents in support of their contentions. They requested that market inquiry should be conducted from Shahrah-e-Liaquat, Karachi. The request was acceded to. The importers agreed that work back values obtained from a market inquiry from the market where these Submersible Motors, are traded will actually reflect correct values. The prices varied depending on the KW, origin and material.
Valuation methods given in Section 25 of the Customs Act, 1969 were followed to arrive at customs values of Submersible Motors. Transaction value method provided in Section 25 (1) was found inapplicable owing to wide variation in the values being declared to the customs. Identical / similar goods
value methods provided in Section 25 (5) & (6) were examined for applicability to the valuation issue in the instant case which provided some reference values of the subject goods but the same could not be exclusively relied upon due to wide variation in declared values of subject goods. Thereafter, market enquiry as envisaged under section 25(7) of the Customs Act, 69, was conducted. For the purpose, different markets were surveyed repeatedly. Equity, the Customs values of Submersible Motors have been determined under n 25(7) of the Customs Act, 1969.
