KARACHI: Director General Customs Valuation Syed Tanveer Ahmed issues Order-in-Revision No.279/2016 under section 25-D of the Customs Act, 1969 against Valuation Ruling No.887/2016 issued on July 27, 2016. The revision petition was filed by M/s Home Plus (Private) Limited and others.
The petitioner stated that the valuation ruling 887/2016 dated 27.07.2016, superseding valuation ruling 479/2012, ostensibly under Section 25A of the Customs Act, 1969, is illegal and violates section 25A and superior courts judgments pronounced in a number of cases.
The officer concerned may issue a valuation ruling but he is required to determine the customs value and not to fix the value. The determination is a multi-step exercise at each stage of which there has to be a proper application of mind by the officer. It is, therefore, necessary that the ruling should contain sufficient details to show that section 25A has been properly applied. And without visible exercise reflected on record, a valuation ruling cannot be said to have issued legally as provided Sec. 25A and interpreted by higher judiciary.
Director General Customs Valuation Syed Tanveer Ahmed said in his order that record of the case has been examined, five importers appeared, and contended that the customs value of zipper has been determined on higher side vide Valuation Ruling No.887 issued on 27, 2016. The difference of value of zipper in cut to size and in rolls is too divergent.
In the Valuation Ruling 887 issued on July 27, 2016, the value addition for zipper in rolls to cut to size is not rational. In case of metallic / brass the value of cut to size is $6.30/kg and that of in rolls (a $5.80/kg, hence value addition to make cut to size zipper from roll is $0.50/kg. On the other hand, in case of nylon / polyester/plastic the value for cut to size is determined at $4.34/kg whereas as for the rolls, it is $2.15/kg, showing that addition is $2.19/kg which is not understandable.
He further stated that plain reading of the customs values determined vide impugned ruling valuation reflects that in case of brass aluminum zipper the consumer cost from roll to cut to size is only above 8 percent only whereas for nylon/polyester zipper it is workout at the rate of 102 percent. Moreover the custom value of Nylon/Polyester in rolls is used 2.15/kg and aluminum zipper at as 3.35/kg, meaning these by the aluminum zipper is costlier than nylon/polyester zipper. Whereas in case o cut to size category the polyester / nylon zipper is at S4.34/kg and aluminum zipper at $3.65/kg, showing that aluminum zipper is cheaper than nylon / polyester zipper significantly. The reasons for this conclusion have not been recorded in this impugned Valuation Ruling.
The facts and figures reflects that due care was not taken while determining the customs values of aluminum zipper in cut to size and nylon / polyester zipper in rolls. Therefore, the Director Customs Valuation is directed to re-determine the customs values by considering all aspects, within 30 days of issuance of this order. In the meantime the value of cut to size aluminum zipper (finished form) is enhanced to $5.50/kg. The petition is disposed of accordingly.
