KARACHI: Director General of Customs Valuation, Samaira Nazir Khan through Order in Revision No 100/2015 has disposed of a revision petition against Valuation Ruling No 692/2014 related to the import of gypsum board, gypsum tiles and fiber cement board remanding back the case to the Director Customs Valuation for DE novo consideration with a view to prevent undue loss to national exchequer.
The revision petition was filed under Section 25-D of the Customs Act 1969 against Customs value determined for gypsum board, gypsum tiles and fiber cement board vide Valuation Ruling No 692/2014 dated 25-09-2014 issued under Section 25-A of the Customs Act 1969 inter alia on the following grounds as reproduced below;
“The Valuation Ruling (V/R) has been issued for gypsum board and fiber cement board. We do not agree with the Customs Values determined in it. We request for revision of the value determined under the valuation ruling, under Section 25D of the Customs Act 1969.
Gypsum Board PCT Heading 6809.1100:
In Valaution Ruling No 566/2013 dated 03-07-2013 the customs value of gypsum board of China/ Thailand was $0.26per kg and decorated was $0.28 per Kg. However, in Valuation Ruling 692/2014 dated 25-09-2014 has been reduced to $0.24/kg for plain and $0.26/Kg for Decorated. As per Customs Collectorates data declared rate in $ 0.26/kg and assessed at $0.26/kg and $ 0.286/kg. Reduction in Customs value is not justified.
Similarly the values of Middle East Origin are 0.21/Kg. $0.23/kg are also not justified.
This review petition was filed against Valuation Ruling No 692/2014 dated 25-09-2014 and the hearing was fixed on 26-03-2015, which was attended by the petitioner’s representative namely Altaf Haroon, Manager Operations, DFB gypsum.
The Director General of Customs Valuations in her order remarked, “I have examined the petitioner’s verbal and written arguments and have also gone through the facts of the case on record. It has been observed that the valuation of these goods was basically decided after threadbare discussions held by the respondent with the subject petitioners, who are actually the local manufacturers of gypsum board; as with the active participation of other stakeholders i.e. the trade body/importers.
Case showed that the issue was previously raised by certain importers before the revisions authority and the matter was then remanded for consideration of Customs value vide Order in Revision No 23/2014 dated 07-03-2014. Subsequently, in consideration of the representation made by importers and other stakeholders, the impugned valuation ruling was issued. The petitioner has now made representation claiming that the determined value of gypsum board and fibre cement board was on lower side than the existing market price.
Keeping in view the foregoing circumstances, the impugned valuation ruling overall, deserves to be reconsidered in the light of citation of evidences given by the petitioners. It is viewed that in order to incorporate the correct market position in the light of relevant data in terms of Section 25(5) and (6) of the Customs Act, 12969, in the presence of cited evidences, issuance of fresh valuation ruling is warranted.
With a view to prevent undue loss to the national exchequer, if any, the case is remanded back to the Director Valuation for DE novo consideration, with the directions to undertake necessary exercise on priority basis. While re-determining the customs values all stakeholders may be accorded opportunity of hearing and to enable submission of their input before final conclusion in accordance with law. The review petition shall stand disposed of accordingly.
