KARACHI: The Directorate General of Customs Valuation revised the customs value of children chocolates Valuation Ruling No: 1042/2017 under Section 25A of the Customs Act, 1969.
According to details, customs values of chocolate were earlier determined and notified vide Valuation Ruling No: 636/2014, dated 29th January, 2014.
A number of representations from importers were received stating that changes had occurred in international trading prices of subject goods and that due to the difference between valuation ruling values and actual trading prices, resulting in incentive for smuggling etc.
Since prevailing customs values mentioned in the said Valuation Ruling are also over two years old, therefore, the customs values therein need to be revised in view of current international price trends. An exercise to determine the customs value of subject goods was accordingly undertaken.
Meetings for the determination of customs values of chocolates with stakeholders were held on 18-08-2016 & 22-09-2016 which were duly attended by all the stakeholders. All the stakeholders agitated that the said valuation Ruling be reviewed in the light of prevailing international and local market prices so that import could be increased.
It was also highlighted that the subject goods are perishable items and therefore have got limited shelf life, consequently, near the expiry dates, these perishable items are sold on sale and discounted prices.
The traders further stated that since the subject goods are mainly being sold on super and general stores, therefore, a lot more expenses (shelf rent, marketing expenses, refrigeration cost etc.) are contributed at retail level which cannot be managed without adding extra value to the subject goods.
The importers contended that all these factors may also be considered in fixing value of subject goods. Prices were accordingly also verified on the basis of location of market in the city and date of expiry of the product in question.
