KARACHI: The Directorate General of Customs Valuation has increased customs values on the import of generators.
The directorate determined the customs values of generators under Section 25-A of the Customs Act, 1969 vide Valuation Ruling NO.356/2011 dated 19-07-2011 and its Amendment dated 29-08-20 II.
According to the ruling, the customs values of Gasoline (Petrol) Generators (low-end brand) of China origin were determined by issuing Valuation Ruling No 569/2013 dated 12-07-2013. A number of representations have again been received from the importers of Generators wherein they have agitated that values in the international market have considerably gone down and that existing valuation ruling does not reflect correct international prices. Therefore an exercise to determine customs values of Generators afresh in terms of Section 25-A of the Customs Act, 1969 was initiated.
The new ruling has superseded Valuation Ruling No 35612011, dated 19-07-2011 and its Amendment dated 29-08-2011 and Valuation Ruling No 569/2013 date 12-7-2013. A meeting for the determination of customs values of Generators with stakeholders was scheduled on 07-03-2016. The meeting was attended by a number of importers, including representatives of M/s Greaves Pakistan (Private) Limited, M/s SM Jaffar, M/s Allied Engineering, M/s Base Ten International.
During the meeting, the importers said that the values of European-origin generators were determined on much higher side in the earlier valuation ruling, resultantly imports from European origins was stalled and such generators became uncompetitive in the local market. This segment of market was taken over by old and used generators’ import.
During the meeting the participants were requested to submit documents, record and other evidence in support of their arguments. Despite a lapse of considerable time, the importers have not submitted the requisite documents barring a few who only submitted partial record.
The valuation methods given in Section 25 of the Customs Act 1969 were followed to arrive at customs values of Generators. Transaction value method provided in Section 25 (1) was found inapplicable because the requisite information was not available. Identical/similar goods value methods provided in Section 25(5) & (6) were examined for applicability to the valuation issue in the instant case which provided some reference values of the subject goods but the same could not be exclusively relied on due to wide variation in declared values of subject goods.
Thereafter, market enquiry as envisaged under section 25(7) of the Customs Act, 1969, was conducted which gave most of the generators bought and sold in the local market. The generators of some specifications were not readily available in the market; therefore, different markets were surveyed repeatedly. The computed value method as provided in Section 25(8) of the Customs Act, 1969, could not be applied as the conversion costs from constituent material at the country of export were not available. Online values of subject goods were also obtained.
All the information so gathered was evaluated and analysed for the purpose of determination of customs values. Consequently, the Customs values of Generators have been determined under Section 25(9) of the Customs Act, 1969, it said.
In cases where 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. In case 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. The values determined vide this Ruling shall be the applicable Customs value for assessment of subject imported goods until and unless it is rescinded or revised by the competent authority in terms of Sub-Sections (I) or (3) of Section 25-A of the Customs Act, 1969.
Revision of the value determined vide this Valuation Ruling: A revision petition may be filed against this Ruling, as provided under Section 25-0 of the Customs Act, 1969, within 30 days from the date of issue of this ruling, before the Director General, Directorate General of Customs Valuation, Karachi Custom House.
