KARACHI: Director General Customs Valuation has disposes of a petition filed by M/s Marium Enterprises and M/s Noor Traders. The revision petition was filed under section 25-D of the Customs Act, 1969 against customs value determined vide valuation ruling No.859/2016 dated 25-05-2016 issued under section 25-A of the Customs Act, 1969.
The Directorate General of Customs Valuation in the order stated: “I have examined the record of the case as well as written and verbal arguments put forward by the petitioner and the respondent department. The petitioner contended that the impugned valuation ruling of shoes slippers etc was determined unilaterally and illegally at the instance of local manufacturers and enhanced the previous determined customs values by 100 percent without hearing the applicant and other stakeholders.
“The method adopted in determining the impugned valuation ruling are quite violation of the section 25 and 25-A of the Customs Act, 1969. The impugned valuation ruling appeared to have been issued on the basis of the international prices gathered from internet sources, which is violation of section 25 and 25-A ibid.
“Conversely the respondent department furnished their comments and argued that it was not correct that the said ruling was issued illegally or in violation of section 25-A of the Customs Act, 1969 as the same was issued after thorough investigation and following all valuation methods.
“The respondent department explained that it is incorrect that it is incorrect that the ruling was issued on the will of the local manufacturers. Further the concept of fixing of value no more exist in the Customs Act, 1969, rather Customs Values are being determined and notified in terms of the section 25A ibdi. They also explained that value in the said ruling has not been enhanced 100% without hearing the applicant and other stakeholders
The department provided two opportunities of meeting with the stakeholders / importers including trade bodies i.e FPCC&I, KCC&I and Pakistan Footwear Manufacturers Association, Lahore were called for participation and taking their input on 20-04-2016 and 27-04-2016 for determination of customs values of the subject goods.
They were also requested to provide import documents as mentioned at para (3) of the valuation ruling, however no one submitted the same.
The department further stated that all valuation methods from sub section (1) to (8) were properly exhausted sequentially before determining the customs values and reason for rejection of the same have also been clearly mentioned in ruling. Consequently the impugned valuation ruling was issued under section 25(9) of the Customs Act, 1969 after examining the import data on the line prices from international websites and by analyzing all the gathered information.
“In view of the foregoing situation, documents available on record written as well as verbal submission. I am of the view that the determined customs values appear to be fair and normal and issued after exhausting all the available provisions of law, the same is, therefore, upheld and revision petition is rejected.”
