KARACHI: The Directorate General of Customs Valuation has determined the customs value of iron or non-alloy steel wire rod low/high carbon (draw quality) vide Valuation Ruling No. 693/2014 No. Misc/26/2014-VI dated September 26, 2014.
The customs values of the said goods were determined under Section 25A of the Customs Act 1969 vide Valuation Ruling No. 550 dated April 23, 2013.
In the process of revision and updating of the valuation ruling, representations were filed by All Pakistan High Carbon Steel Wires Manufacturers Association, other manufacturers and importers saying that they were facing hardship due to reduction in the price of wire rod in the international market and, thus, the customs values determined vide Valuation Ruling 550 in 2013 no more reflected the reduced international prices and thus need to be revised.
It transpired from the case record that the valuation of subject goods was based on the prices of metals quoted in LME. As a matter of principle it was agreed previously with the importers/stakeholders that average 90-day period price would be worked out for determining of the customs value and this consented formula continued in vogue.
However, in consideration of the representations and meetings with the importers/manufacturers and relevant stakeholders were held on March 17, June 26 and September 23 to discuss the valuation criteria to help resolve the issue.
During the meeting, the majority of the participants/stakeholders criticised the fixation of prices of prime quality iron and steel products. They said that in the view of the board’s letter C. No. (13)CTR/2000-Pt dated October 30, 2003 to ensure transparency, fairness and uniformity in assessment, the assessable value should be based on LMB prices with addition of freight.
During deliberation in the meetings, the Pakistan High Carbon Steel Wires Manufacturers Association contended that present Valuation Ruling may be withdrawn as it was done previously in the case of Valuation Ruling No.360/2011 dated August 2, 2011 which was withdrawn vide Advice C. No. Misc/26/2010-VI-A dated January 27, 2012.
It was, therefore, viewed that in the presence of fixed values in valuation ruling, the above cited situation would be causing problems to importers and subsequent difficulties in their proper valuation at the clearance stage. It was also observed that the prices of prime quality metals are easily verifiable through prices published in London Metal Bulletin.
Finally, the Directorate General of Valuation determined that iron or non-alloy steel wire rod low/high carbon (draw quality) of different origins shall now be assessed for duty/taxes on the customs values given against them as under.
Iron or non-alloy steel wire rod low carbon (draw quality) having PCT Heading 7213.9190 and 7213.9990 and Proposed PCT for WeBOC 7213.9190.1000 and 7213.9990.1000 would be assessed for Customs Values C&F in $ per MT as follows: LMB prices+5% (on account of Draw Quality, Size, etc.) + $45/MT (minimum, on account of freight).
Iron or non-alloy steel wire rod high carbon (draw quality) having PCT Heading 7213.9190 and 7213.9990 and Proposed PCT for WeBOC 7213.9190.1100 and 7213.9990.1100 would be assessed for Customs Values C&F in $ per MT as follows: Iron or non-alloy steel wire rod low carbon (Draw Quality) as determined above + $66 per MT.
“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, 1969. 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.”
