KARACHI: Director General of Customs Valuation Syed Tanveer Ahmed issues Order in Revision No. 225/2016 under section 25-D of the Customs Act, 1969.
According to the details, the revision petition was filed by M/s Master Tiles Ceramics Industries and others against customs value determined vide Valuation Ruling No.874/2016 dated 22-06-2016 under section 25-A of the Customs Act, 1969.
During hearing the manufacturers (Al-Shabbir, Master Tiles, Al-Karam etc.) contended that their market share is being shrinking. Presently, the imports have captured around 75 percent of the market and the manufacturers are left with only 25 percent share .
Units like Emco has been closed and others are on the verge of collapse because of China’s dumping and under valuation in this sector. The local manufacturers are facing difficulties to compete with smuggled tiles. They further stated that values of tiles are continuously declining by the department during the last 3 valuation rulings. The industry needs a fair value. They contended that the values are around 30 – 40 percent more as compared to the valuation ruling.
During market inquiry it was found that prices of ceramic, porcelain etc. varied as per colour, design, quality etc. It was found that all work back calculations were made at the lowest of the quality as stated by Principal Appraiser (PA) and Valuation Officer (VO) of the group.
The Valuation Officer said that the prices which were revised downward (of major import volume) is on the basis of market inquiry but could not give reason why other prices were not reduced, if there was a general downward trend. The PA/VO accepted that they did not took into account factor of colour, design, quality etc.
The difference comes around (Rs 50 – 300/sq. meter). In view of above discussion, the prices have been fixed on lower side for Chinese origin tiles. Taking average values, it is ordered that prices of Chinese origin tiles shall be enhanced by 12.5% with immediate effect.
