KARACHI: The Directorate General of Customs Valuation has revised the customs value of butter (derived from milk/dairy) through Valuation Ruling No 1050/2017 under Section 25-A of the Customs Act. 1969.
According to details, Directorate General had earlier conducted an audit of the clearance values of imported butter and in comparison with international trading prices and the local market selling prices, and the import values were found to be on lower side. As an immediate corrective measure this Directorate General circulated reference values vide National Valuation Data Base letter 163 dated 13-01-2017. However, as per the policy in vogue, Valuation Database Reference values are required to be converted into Valuation Ruling for uniform applicability across the country. In this context, the Directorate General, Valuation initiated an exercise for determination of customs values of imported butter under section 25A of Customs Act, 1969.
A meeting for determination of customs values of butter with stakeholders was held on 03-01¬2017 which was duly attended by the importing stakeholders. Importers strongly contended and requested that the said Valuation Data Base values may be reviewed in the light of prevailing international and local market prices. The importers, were of the view that actual prices of butter were lower than that determined vide VDB letter No. 163 and that their costs of selling have not been correctly accounted for. Further, to determine veracity of their stance, the stakeholders insisted that a fresh market surveys be conducted from local market for determination of customs values of Butter and that their extra selling costs like refrigeration and allied caution in logistics and handling (due to sensitive nature of goods) may be duly accounted for. They also insisted to bring on record that the subject goods are perishable items and therefore have got limited shelf life, consequently, near the expiry dates.
