KARACHI: The Directorate General of Customs Valuation has revised the customs values of rear engine intercity buses through Valuation Ruling No 1230/2017 under Section 25-A of the Customs Act, 1969.
A representation was received from M/s Master Motor Corporation (Private) Limited wherein they requested for determination of customs values for rear engine intercity buses imported from China as the phenomenon of under invoicing has been prevalent in the import of the aforementioned buses. Therefore, an exercise was initiated in this Directorate General for determination of customs values of the subject vehicles under Section 25 A of the Customs Act, 1969.
A meeting was held on 14.09.2017 with different stakeholders including the representatives of M/s Master Motors Corporation (Private) Limited, M/s Hino Pak Motors (Private) Limited, M/s Al Haj Hyundai (Private) Limited, M/s Gandhara Motors (Private) Limited, and M/s Universal Auto Engineering (Private) Limited. They were requested to submit import invoices of the last three months showing factual values.
Websites, names and e-mail addresses of known foreign manufacturers of the item in question through which the actual current value can be ascertained.
Copies of Contracts made / LCs opened during the last three months showing the value of item in question. Copies of sales tax invoices issued during last four months showing the difference in price (excluding duty and taxes) to substantiate their contentions on customs values.
Another meeting was convened on 9.11.2017 as the stakeholders did not provide the above-mentioned documents except M/s Master Motor Corporation Pvt. Ltd and M/s Universal Auto Engineering Pvt. Ltd who provided certain documents in support of their claims.
During the meetings, local manufacturer M/s Master Motors Corporation Pvt. Ltd contended that no customs value of intercity rear engine buses has been determined by the Directorate General, Customs Valuation and the intercity rear engine buses having length ranging from 11.70 to 13 Meters are of high value and have been imported at under invoiced values.
Furthermore, their price vary on the basis of available features with these buses like LCD fitted seats, ZF transmission, luxury seats, availability of bath room. On the other hand importers argued that the assessed values of intercity rear engine buses are fair and the prices provided by the local manufacturer are of ultra-luxury buses with additional features, therefore, these prices cannot be made basis for determining the customs values of the subject buses. However, the importers did not submit any corroborating documents in favour of their contentions.
