KARACHI: The Directorate General of Customs Valuation has issued Order-in-Revision against Valuation Ruling No 658/14 under Section 25D of the Customs Act, 1969.
According to details, the petitioner Deco-Rez Flooring filed a revision petition against the Valuation Ruling No 658/14 in which the Customs authorities determined the values for wall paper.
In the review petition filed by the importer Deco-Rez was adopted the view point that the subject Valuation Ruling No 658/14 for wall paper imported from China, Malaysia and Korea origins was nullity to the provision of Section-25 of the Customs Act, 1969, read with Chapter IX of Customs Rules, 2001 and without evaluating the nature of the goods in question and the dictum laid down by Superior Court of Pakistan.
The importer was also stated that the wall paper from China, Malaysia and Korea against confirm letter of credit at $1.60 and $5.50 per roll, which comes to $1 per Kg and $ 1.15 per Kg C&F respectively as evident from the annexed letters of credit, invoices, packing and Bill of Lading.
The importers further viewed that the Customs authorities have determined the Customs values of wall paper imported from China, Malaysia and Korea at $ 2.25 and $ 2.70 per Kg C&F under the provision of Section (7) of the Section 25 of the Customs Act, 1969, adding that the Customs authorities prior to determine the value of wall paper through impugned ruling did not conducted market inquiry despite mandated under law.
In response, the respondent while giving their view-point said that it was brought into the notice of Directorate General of Customs Valuation that the consignments of wall paper (PCT Heading 4814.2000) were being cleared at under invoiced values, causing loss of revenue to government exchequer.
“This prompted an exercise to determine the fair Customs values for imported wall paper”, they added.
Respondents further said that the meetings were also held with the stakeholders and representatives of FPCCI on November 28, 2013, December 10, 2012-2013,January 2 and 23, 2014 to obtain stakeholders views on valuation of wall paper.
The Director General of Customs Valuation in the judgment stated that “while fixing the values, the Customs authorities have totally ignored the element of quality and the case is accordingly remanded to the director for re-fixing the values on the basis of origin, length of roll, width of paper and weight per roll, keeping in view the factors of origin and length of roll while conducting the market survey each and every cost has to be discussed”.
