KARACHI: The Directorate General of Customs Valuation has revised the customs value of pet food (cat and dog food) Valuation Ruling No 977/2016 under Section 25-A of the Customs Act, 1969.
The directorate general during routine analysis of import data observed that volume of import of subject items has increased over time, however, the same are being cleared against guideline price issued by a clearance Collectorate. The import values were observed to be on lower side vis-a-vis international selling prices, available online, and also on lower side in comparison to the local market prices of subject goods. It was observed that the subject goods were being cleared by clearance Collectorate up to $ 0.50/Kg, therefore, needed assessable values be rationalized as per the international and local market prices. Therefore, in order to rationalize the import values of subject goods, an exercise was undertaken by the Directorate General of Customs Valuation, Karachi to determine the Customs Values of subject goods in terms of Section 25-A of Customs Act, 1969.
Meeting was held on 25-10-2016 with stakeholders of subject goods and representatives of clearance Collectorates were also participated. All the stakeholders contended that the existing clearance values were correct and that they purchase the subject goods at discounted rates etc. and requested that values be determined in line with actual international prices which are on the lower side and to keep the aspect of packing mode in focus. It was also highlighted by the importers that subject goods are perishable items and therefore have a limited shelf-life, consequently they contended that near the expiry dates, these items are sold in sales at discounted prices. It was further contended by the stakeholders that since subject goods are mainly being sold in high-end super/ general-stores, therefore, much more expenses (shelf rent, marketing costs etc.) are incurred at retail level which cannot be managed without adding extra value to the subject goods, hence the prices get inflated in the retail market. The importers requested that all these factors be considered while determination of value of subject goods. Prices are also verified on the basis of location of market in the city and date of expiry of the product in question and from available international websites. While determining the prices, factors ike mode and nature of essential packing have also been taken into account and it was decided that valuation ruling shall reflect prices on net content basis.
