KARACHI: Director General of Customs Valuation Suraiya Ahmed Butt issues Order in Revision No. 342/2017 under section 25-D of the Customs Act, 1969 in compliance of Lahore High Court in ICA No 241/2015 and W.P No 30801/2014 filed by M/s Time Trading Company, and M/s Zain International, Lahore.
According to the details, M/s Time Trading Company Lahore had filed a writ petition no. 33572/2014, before the Lahore High Court, challenging the legality and applicability of Office Order No. 04/APR/Misc/AFU/823/2012-13/19 dated 03-012012, vide which the Master Airway Bill was identified to be the basis for determination of actual freight of imported consignments, for treatment thereof under Section 25(2)(a)(i) of Customs Act, 1969.
The petition was dismissed vide Lahore High Court’s orders dated 16-01-2015 in the favor of the Department.
Director General of Customs Valuation Suraiya Ahmed Butt in his order stated that, the petitioners have not complied with the orders of Lahore High Court, issued vide ICA No. 241/2015 dated 6-6-2016 in which they were directed to appear before the Director General Customs Valuation with a certified copy of the said judgment to present their point of view.
Despite repeated notices for personal hearing, no one appeared from the petitioners’ side. Since the case cannot be kept pending indefinitely, therefore, it was resolved to decide the issue on the merits of the case as available on record.
The Air Freight Units (AFU) Lahore and Karachi have given self contained comments on their views viz. legal position as well as procedures in practice in their respective area of jurisdiction.
The amount of freight is added to the value of goods in terms of Section 25 of the Customs Act, 1969. The correct amount of freight is the amount indicated in the Master Airway Bill issued by the airline which has transported the cargo. The international best practice also supports the contentions of the clearance Collectorates.
Based on the discussion in the preceding paras, it is held that the Master Airway Bill (MAWB) being a Customs document and the primary declaration of the carrier of imported goods, at importation stage is, therefore the bona fide and valid basis for calculation of freight and for apportioning of the same as per the Volume / Gross weight paid against each imported consignment for determining the values of the individual consignments to satisfy the legal requirements stipulated vide Section 25(2)(a)(i) of the Customs Act, 1969.
In case the goods are imported against consolidated MAWB with more than one House Air Way Bills, the freight has to be mentioned in the respective Master Air Way Bill therefore the petition is disposed of accordingly.
