ISLAMABAD: Director General Customs Valuation Karachi Syed Tanvir Ahmed has dismissed the appeal for revision against the Valuation Ruling 925/2016 by determining the import tariff price of melamine molded fiber door skin.
This revision petition was filed under section 25-D of the Customs Act 1969, against Director, Customs Valuation Karachi, by M/s Ameen Company, M/s Mateen Traders and other 14 importers and traders.
It is pertinent to mention here that through the valuation ruling 925/2016, director customs valuation had changed and increased the value of the Melamine MFD skin import from China, from US$ o.56 to 0.75 per kg/sheet, on the other hand, in the same valuation ruling they have fixed C&F value of US$ 0.55/kg for Malaysia prime moulded fiber door skins which is expensive than Melamine moulded fiber door skin. It is also important to mention here that 99 % of MDF Melamine door skin import in Pakistan from China.
According to market sources Melamine MFD skin retail price is cheaper than Malaysia market while prime moulded fiber door skin is expensive than China Melamine moulded fiber door skin. The petitioners being aggrieved and dissatisfy with the impugned valuation ruling No.925/2016, was plead in the review appeal that Director Customs valuation misinterpreted the Sindh High Court order passed in CP No.6918 dated 10 November 2015 and exercise was undertaking to re-determine value of the said goods under section 25-A of the Customs Act,1969.
It is another fact that some opportunists have mislead the customs officials and have succeeded to get the valuation issued of their own choice. The director valuation has falsely mentioned the participation of the stakeholder but the stakeholders were not taken into the confidence, while issuing the valuation ruling.
The only meeting was called on 16th August 2016, when it was agreed that next meeting shall be called and all stake holders shall be given opportunity to produce relevant material in support of their contentions but no meeting was called.
They also plead that once door skin is a bi-product of MDF and prevailing price for MDF is 0.33/kg for 2mm to 3mm and US$ 0.336/kg for 3.01mm to 4.9mm so how could it be possible to evaluate addition for melamine lamination over 125% from raw material. The cost o value addition for melamine including profit of manufacturer comes to 50% from the price of MDF.
Appropriate market inquiry in collaboration with Karachi Timber Merchant Group was not conducted by the department as it was always been practice in past. Valuing the Chinese product with other countries is otherwise unjust, unfair.
The Chinese products are available and sold at cheaper prices. Through the valuation ruling, the Chinese products have been targeted, which consequently also gave bad effect to the relations between two friends and neighboring countries. The Director General valuation has said in his order in revision no.274/2016, that market inquiry was conducted and it was observed that the melamine moulded fiber board is value added product and more expensive than prime moulded fiber board door skin. To verify prices the Zauba data, imports of India of these products were compared. Zauba data also shows prices in the same range as determined by the director valuation.
The bifurcation of moulded fiber board door skin into three categories in valuation ruling No. 873/2016 is correct and logical because for cheap and expensive products same value cannot be applied by way of bifurcation of all three categories of moulded fiber board skin and notify the separate value for each category the menace of mis-declaration is discouraged.
The prices got from international sources come around the same level as mentioned in the valuation ruling. Considering the value of raw material and value addition the request regarding downward revision in value of melamine moulded fiber door skins cannot be considered.
