KARACHI: Directorate General of Customs Valuation has determined the customs value of conventional and inverter type air conditioners vide Valuation Ruling No.744/2015 which also outdid the previous Valuation Ruling No. 586/2013.
According to details, the Valuation Department had received a reference from MCC Appraisement -West which explicated that the current ruling excludes the inverter type air conditioner. On the other hand, local manufacturers also complained about improper assessment of the inverter type air conditioner.
Taking into consideration the grievances of the importers and manufacturers, an inquiry was conducted to determine the customs value. Moreover, a market research indicated that there exist a substantial difference in the prices of conventional and inverter type air conditioners of similar brands. The entire market inquiry report was thoroughly analyzed and evaluated.
Furthermore, meetings were also held with the stakeholders on May 21 and June 3, 2015 where all the findings and information of the market report had been discussed. During the meetings, the local manufacturers submitted that the inverter type air conditioner consists of most advanced form of technology and are sold at very exorbitant prices in the international market along with the excessive premium payments.
Whereas, the importers accepted this clarification, but with the exception that the differences being depicted by the local manufacturers tends to be ambiguous. Importers also requested the authorities concerned to enhance prices up to the extent of 15 percent for legal import.
Later, the assessment of customs values for split air conditioners were proposed for Wall mounted 12000 BTU under PCT code 8415.1020 for $209 (c) and $282 (i), Wall mounted 18000 BTU under PCT code 8415.1020 for $242 (c) and $327 (i), Wall mounted 24000 BTU under PCT code 8415.100 for $300 (c) and $405 (i), Floor standing 24000 BTU under PCT code 8415.100 for $477 (c) and $644 (i), Floor standing 48000 BTU under PCT code 8415.100 for $690 (c) and $932 (i), Floor standing 60000 BTU under PCT code 8415.100 for $822 (c) and $1110 (i), Wall mounted 12000 BTU under PCT code 8415.100 for $225 (c) and $304 (i), Wall mounted 18000 BTU under PCT code 8415.100 for $291 (c) and $ 393 (i), Wall mounted 24000 BTU under PCT code 8415.100 for $340 (c) and $459(i), Floor standing 24000 BTU under PCT code 8415.100 for $534 (c) and $721 (i), Floor standing 48000 BTU under PCT code 8415.100 for $816 (c) and $1102 (i), Floor standing 60000 BTU under PCT code 8415.100 for $1017 (c) and $1373 (i) respectively.
It is important to mention that in case of consignments imported by air, the assessing officer shall take into account the differential between air and sea freight at the time of applying custom duty.
