KARACHI: The Directorate General of Customs Valuation has revised the customs values of bearings vide Valuation Ruling No 1188/2017 under Section 25-A of the Customs Act, 1969.
The values determined vide the aforementioned valuation ruling, especially the customs values of ball bearings and taper bearings, were challenged before the Director General under section 25-D of the Customs Act, 1969 by different importers and Bearing Trade Group. They contended that while issuing the Valuation Ruling neither any inquiry was conducted from the wholesale market nor their proposals submitted during meetings were considered at the time of issuance of the impugned valuation ruling.
They claimed that the values in the impugned valuation ruling were very high and it was difficult for them to import ball bearings and taper bearings and compete in market where there was presence of smuggled goods.
They also claimed that through the said enhancement in customs values the legal imports were discouraged. They feared a possible shift from legal imports to smuggling regime. The Director General customs valuation, vide Order-in-Revision No. 351/2017 dated 07-06-2017, held that “Categorization, origin, brands of valuation of ball bearings and taper bearings, as notified vide the impugned Valuation Ruling No 1135/2017 dated 18-4-2017, warrants to be revisited.”
“Therefore, the case is remanded back to the Director, Customs Valuation, Karachi for re-determination of Customs values, according to law, with due attention to the areas which have not yet been properly focused, to the extent of serial No. 1 to 5 of the impugned Valuation Ruling and notify the same under Section 25A of the Customs Act, 1969. It is also directed that customs values for ball bearings and taper bearings be re-determined within two weeks of the issue of this order.” Hence, this Directorate General re-initiated exercise for determination of customs values of ball bearings and taper bearings.
Different meetings with stakeholders were held on 15-06-2017. Importers had been requested to furnish the 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. 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.
