KARACHI: The Directorate General of Customs Valuation has determined the Customs values of Formic Acid (H.S. Code 2915.1100) vide Valuation Ruling No. 703/2014 dated December 19, 2014.
The Directorate General Customs Valuation had received reference No C-13/CH-CC/2014/122.550 dated October 20, 2014 from Pakistan Chemical Dyes Merchants Association. The Association requested the Directorate for revision of Valuation Ruling No. 627/13 dated December 24, 2013.
The Directorate initiated an exercise to determine the Customs values of Formic Acid afresh to reflect the current prices prevailing in the international market.
The exercise followed the Valuation methods given in Section 25 of the Customs Act, 1969. The Transaction method under Sub-Section (1), Sub-Sections (5) and (6) of Section 25 of the Act were found inapplicable due to abnormal variation. The Deductive value method under Sub-Section (7) of the Act was, however, exhausted. Finally Sub-Section (9) of Section 25 was applied to arrive at assessable Customs values.
After the meetings with stakeholders on October 14 & 21 and December 9, 2014 as well as scrutiny of the contentions forwarded by the Association the Directorate determined that Formic Acid shall be assessed to duty/taxes at the following Customs values. China Origin Formic Acid 85 percent manufactured by BASF having PCT Code 2915.1100 and Proposed PCT for WeBOC of 2915.1100.1000 shall be assessed for duty/taxes at Customs Values (C&F) at $ 0.80 per kilogram.
China origin Formic acid manufactured by other manufacturers having PCT Code 2915.1100 and Proposed PCT for WeBOC of PCT Code 2915.1100.1100 shall be assessed for duty/taxes at Customs Values (C&F) at $ 0.72 per kilogram.
India origin Formic Acid 85 percent manufactured by All manufacturers having PCT Code 2915.1100 and Proposed PCT for WeBOC of having PCT Code 2915.1100.1200 shall be assessed for duty/taxes at Customs Values (C&F) at $ 0.70 per kilogram.
Formic Acid 85 percent manufactured by All manufacturers from “Other origin” having PCT Code 2915.1100 and Proposed PCT for WeBOC of having PCT Code 2915.1100.1300 shall be assessed for duty/taxes at Customs Values (C&F) at $ 0.80 per kilogramme. Formic Acid 88 percent manufactured by “All manufacturers” from “All Origins” having PCT Code 2915.1100 and Proposed PCT for WeBOC of having PCT Code 2915.1100.1400 shall be assessed for duty/taxes at Customs Values (C&F) at $ 0.90 per kilogram. The above values are determined for packing 25/35 kilogram drums. A further reduction of US$ 20 per ton is allowed on account of bulk packing, which includes 250 kilogram and above drums.
In cases where the declared/transaction values are higher than the Customs values determined in this Ruling, the assessing officers shall apply those values in terms of Sub-Section (1) of Section 25 of the Customs Act. And in cases of consignments imported by air, the assessing officer shall take into account the differential between air freight and sea freight while applying the Customs values determined in this Ruling.
In cases where the declared/transaction values are higher than the Customs values determined in this Ruling, the assessing officers shall apply those values in terms of Sub-Section (1) of Section 25 of the Customs Act. In cases of consignments imported by air, the assessing officer shall take into account the differential between air freight and sea freight while applying the Customs values determined in this Ruling.
