KARACHI: Director General Customs Valuation Syed Tanveer Ahmed has disposes of a petition filed by M/s IBL Operation (Private) Limited. The revision petition was filed under section 25-D of the Customs Act, 1969 against customs value determined vide valuation ruling No.834/2016 dated 19-04-2016 issued under section 25-A of the Customs Act, 1969.
According to the details, the petitioner said that the values notified on the subject ruling for Wrigley’s chewing gum products. Our declared price for chewing gum Wrigley’s brand extra pallet (different flavors) is $10.70 the value notified is $10.90 per kg 2 percent higher which is unfair, arbitrary. The transaction value has been rejected without any cogent reasons. The petitioner stated that their transactions with the supplier are on L/C basis. “We are enclosing herewith the import documents for the last one month along with the trade price list and sales tax invoices raised in favor of the whole sellers indicating the retail prices available to the customers at large,” the petitioner said.
The Directorate General of Customs valuation in the order stated that “I have deliberated on the case record as well as verbal & written arguments put forth by the petitioner and the respondent Department. The petitioner contended that the customs value of Lottee brand chewing gum imported from Europe and Far-Eastern countries determined @ $ 2.00/Kg of all origin vide valuation ruling 834/2016, dated 19-04-2016 which have been uplifted without any basis and it may be reviewed downwardly at $ 1.25 kilograms. The petitioner further stated that the subject item’s value in the previous Valuation Ruling No. 506/2012, dated 19-12-2012 was determined at $ 1.70 kilograms which has been increased hypothetically and illogically. Due to higher valuation, the subject goods are being imported into Pakistan since issuance of previous valuation ruling 506/2012. He added that M/s. Candyland is exporting to Africa on the same values and producing chewing gum.
The petitioner confessed the genuinity of customs values determined vide impugned Valuation Ruling of Lottee brand chewing Gum of Korea origin @ $ 2.00 kilograms but he demanded for determination of valuation ruling on lesser side to compete with Afghan Transit Trade. The Departmental representative stated that values of the subject items have been determined in terms of Section 25(7) of the Custom Act, 1969 after conducting market enquiry to arrive at genuine assessable value. However, on representation of the Petitioner, this Directorate General again conducted market survey. During market survey it was found that values are much on higher side than those determined in the valuation ruling. It was further found that many brands have not been included in the list.
These values shall be applicable from the date of issuance of this order. The revision petition stands disposed accordingly. Being identical on facts and law points, this order shall also apply mutatis mutandis to the following (04) petitions.
