KARACHI: The Director General of the Directorate General Customs Valuation Samaira Nazir Khan has disposed of a review petition through Order in Revision No.112 /2015 under section 25-D of the Customs Act, 1969 against Amendment to Valuation Ruling No.678/2012 dated 11-02-2015.
This revision petition was filed under section 25-D of the Customs Act, 1969 against Customs Value determined for “Sauce/Salad Dressings/Mayonnaise/Mustard of various and other brands” vide Valuation Ruling No.678/2014 dated 2-7-2014 issued under section 25-A of the Customs Act, 1969 inter alia on the following grounds, as reproduced below;
“We are the regular importer of sauces/salad dressing/mayonnaise/mustard of various and other brands and the Valuation Department issued the impugned valuation ruling in which vide Serial No.8 they gave too much higher unit price @ US$ 1.40/kg of all origins.
In this connection we hereby to say that in International market the goods supplied in bulk and retail packing have minimum of 20-25% price difference. In the valuation ruling the difference is negligible.
As we are importing these consignments in bulk packing and we are supplying our consignments to the food services provider and we are not selling our consignments in retail market.
According to the brief facts of the case, It was brought to the notice of Directorate General of Customs Valuation by field formations sauces/salad dressing/ mayonnaise and mustard was being imported at under invoiced values, causing loss of revenue to Government exchequer.
Later, the Valuation Ruling was issued after giving due opportunity to all the stakeholders meeting with the stakeholders including representatives, of FPCCI and KCCI on 22-4-2014 and 29-4-2014 to obtain stakeholders views on valuation of sauces/salad dressing/ mayonnaise and mustard which was attended by the stakeholders. The prices of retail packs worked out on the basis of market enquiry conducted was further discounted and further discount of 15%(approx) for bulk packing which appears to be reasonable. The values were determined as per law for uniform application in all field Collectorates.
The petitioner prayed that In view of the above fact & legal position the review is not maintainable and is prayed to be dismissed.”
The order stated that this Revision Petition was filed against ‘Valuation Ruling No 678/2014 dated 2.7.2014. It was fixed for hearing on 4.5.2015 which was attended by Mr Adnan Asad CEO of the petitioner, who reiterated the arguments contained in the written memo of petition and the submissions given during the proceedings of hearing earlier held in this case. He presented copy of documents, bearing retail price of local brand mayonnaise and invoices/Customs related documents and mentioned that US market has low prices on food items as compared to European origin goods. It was also contended that the value assessed on their product is unrealistic and much higher than its actual value.
In her order the Director General of Customs Valuation Samaira Nazir Khan stated that she had examined the petitioner’s 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 bythe Respondent on the basis of findings/enquiry held under section 25(7) of the Customs Act, 1969. This has been negated by the petitioner on the ground that their imported goods are not available in the retail sales market for the reason that these are supplied to multinational food companies and vendors having franchise chain stores namely KFC, McDonalds, Gourmet Foods etc. Therefore, the contention that determination made by the Respondent was relevant to imports of other similar goods in retail sales packing but irrelevant to their case and merely based on assumption and surmises.
The order further said that, in consideration of the foregoing circumstances, I find that the petitioners’ argument on the disputed value of goods as given in Sr. No. 8 of the impugned valuation ruling with regard to valuation of Sauces/Salad/Mayonnaise & Dressings in bulk quantity; deserves to be taken afresh for its revision, in the light of citation of evidences given by the petitioners. The case is therefore remanded back to the Director Valuation for re-consideration on the above aspect of the impugned ruling. While re-determining the customs values of the cited category of goods, petitioners may be accorded full 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.
