KARACHI: The Directorate General of Customs Valuation has re-determined customs values of honey (H.S. Code 0409.0000) vide Valuation Ruling No 966/2016 under Section 25-A of the Customs Act, 1969.
The directorate earlier issued reference values for imported honey vide Valuation Database letter No.68 dated October 31, 2016. It is pertinent to mention here that no valuation ruling existed at that time and the subject goods were identified as being persistently under-invoiced at import stage.
The import values were examined in the light of international prices and the local market and it was observed that import values were not corresponding to market realities. Consequent to the issuance of reference values, a number of importers of subject goods requested for determination of custom values of imported honey under section 25-A of the Customs Act, 1969.
In order to rationalise values of subject goods, an exercise was undertaken by the Customs Valuation, Karachi to determine the values of subject goods.
A meeting was held on November 03, 2016 with stakeholders of subject goods and representatives of clearance collectorates also participated. All the stakeholders strongly contended that a ruling should be issued and the said valuation reference value-letter may be revisited in light of prevailing international and local market prices and also raised their issues regarding clearance vis-a-vis packing mode. It was also highlighted that subject goods are perishable items and therefore have a limited shelf life, consequently, near the expiry dates; these perishable items are sold in sales at discounted prices.
The importers contended that all these factors may also be considered in fixing value of subject goods. Prices are also verified on the basis of location of market in the city and date of expiry of the product in question. While determining the prices the factors like mode and nature of essential packing have also been taken into account.
Honey hereinafter specified shall be assessed to duty/taxes at the following custom values:-
