MULTAN: Directorate of Customs Valuation determined the customs values of imported curtain and sofa cloth after review.
According to details, Directorate of Customs Valuation issued the Ruling No 765/2015 after revisiting the previous Customs values of imported curtain and sofa cloth. The market value of the imported curtain and sofa was far different from the market and Customs has taken a positive step as the customs values of curtain and sofa cloth are being brought at par with the velvet.
According to current review in the customs values of furnishing fabrics would discourage mis-declaration of velvet, which was being imported on a large scale in the garb of furnishing cloth i.e. curtains and sofa cloth.
It may be recalled that as per the relevant valuation ruling velvet is assessed for duty and taxes at $4.40 per kilograms while furnishing cloth was assessed at $3.20 per kilograms.
On several complaints received from Customs Intelligence and Investigation and Appraisement West that velvet was being mis-declared and revenue was lost. Directorate of Customs Valuation formed a committee to conduct market surveys and research.
After comprehensive market survey of the imported curtain of velvet and sofa cloth the valuation ruling No. 765/2015 has been finalized and accordingly the customs values of furnishing cloth has been revised to $4.5 per kilograms.
It may be mentioned here that the rate of duty on velvet was 25 percent, which was reduced to 20 percent in the last budget. It also attracted FTA concession of 3.0 percent. Furnishing cloth however attracts customs duty of 15 percent.
