KARACHI: The Directorate General of Customs Valuation revised the customs value of networking cables through Valuation Ruling No 1085/2017 under Section 25A of the Customs Act, 1969.
According to details, customs values of networking cables were determined under Section 25A of the Customs Act, 1969, vide Valuation Ruling. No. 643/2014, dated 07-03-2014. The Valuation Ruling required revision in line with the prevailing prices in the international market.
The Directorate General initiated an exercise for determination of customs values of networking cables.
Sources said that a meeting with stakeholders was held on 01-03-2017. Importers were requested to furnish 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, copies of contracts made/LCs opened during the last three months showing the value of item in question and 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.
However, no documents were submitted in this Directorate General on or even before the said scheduled meetings. During the course of the meeting, the stakeholders claimed that the values of raw material of the networking cables have actually reduced in the international market as compared to the values determined in the existing valuation ruling, therefore the values needed downward revision accordingly.
Valuation methods given in Section 25 of the Customs Act, 1969 were followed to arrive at customs values of networking cables.
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, 1969, was conducted. For the purpose, different markets were surveyed repeatedly.
