KARACHI: Director General of Customs Valuation Syed Tanveer Ahmed has issued Order in Revision No. 234 /2016 under section 25-D of the Customs Act, 1969 in compliance of the Sindh High Court (SHC) C.P.No. 2928, dt. 19-05-2016.
According to details, M/s AO Enterprises Karachi filed a constitutional petition No.2928/2016 in the SHC. The court had directed the respondents, their subordinate officers and other persons acting on their behalf to release the consignment of the petitioner lying at port since long, strictly in accordance with the provisions of Section-81 of the Customs Act, 1969. The petitioner is ready to deposit pay order/bank guarantee of differential amount before the respondent No.2 till the final decision of the case. Whereas the court directed the respondents to issue the delay and detention certificate in respect of the consignment.
After the orders of the SHC, the Director General of Customs Valuation Syed Tanveer Ahmed stated that the hearing in this case was fixed on June 6, 2016. However Osama bin Siddique appeared on July 12, 2016.
Director General of Customs Valuation Syed Tanveer Ahmed stated in his order that, “I have examined the verbal submissions as well record of the case and observed that in Valuation Ruling No.650/2014 dated March 26, 2014; menthol crystals are mentioned without restricting it to particular grade, density or melting point, hence applicable to all grades, densities and melting point menthol crystals.
It is also a matter of fact that no other review petition was filed against the subject ruling. Import data was also retrieved and analyzed which reflected that subject ruling was being applied on pharmaceutical as well as food grades without any exception and accepted by the traders without any reservation except by M/s A.O Enterprises. They are of the view that smoking grade is inferior and values $5/kg. I have contacted the experts of M/s Pakistan Tobacco Company, who verified that all types menthol used in tobacco industry is of food grade added Director General of Customs Valuation.
Syed Tanveer Ahmed further stated in his order that, there is no question of low or inferior quality menthol to be used in the tobacco industry. Moreover, the importer has claimed that he is exporting menthol flavored tobacco. Low grade menthol is not accepted in other countries. The importer has imported 300 kg menthol twice up till now. So his consumption is very low. He should seek other ways to get refund of import duty on exports.
We have collected international data of menthol which shows that values of tobacco grade menthol is high. Prices of menthol crystals, all grades were retrieved from international websites and observed that prices are higher as compared to values determined in the Valuation Ruling No.650/2014 which was fixed in 2014 (26.03.2014). The prices of the menthol crystals are based on the grades and ranges from $18 to $35/kg for food grade and from $25 to $45/kg of pharmaceutical grade. The values of smoking grade menthol are akin to food grade menthol, Director General of Customs Valuation Syed Tanveer Ahmed said in his order.
