KARACHI: Customs Valuation Director General Syed Tanveer Ahmed issued Order-in-Revision No. 256/2016 stating that customs values for cereal foods have been determined on reasonable and sound basis after giving due opportunity to the importers under Valuation Ruling No.818/2016.
According to the details, the revision petition was filed by M/s Pepsi Cola International under section 25-D of the Customs Act, 1969 against Valuation Ruling No.818/2016.
On the facts of the case in brief are that the applicant imported a consignment of “Quacker’ brand oatmeal cereal from M/s Altratec SD. BHD, Malaysia vide commercial invoice No. 242 19 dated March 12, 2016 and filed goods declaration number KAPW-HC-185629 dated April 01, 2016 on payment of leviable duty and taxes to the tune of Rs. 1.922 million. However, the assessment was completed after applying the impugned valuation ruling and duty and taxes were assessed to the tune of Rs. 2.592 million. The applicant immediately obtained copy of the impugned ruling.
That applicant stated that it was however, not associated during the exercise for determination of valuation of ‘Quacker’ brand ‘quick cooking oatmeal’, adding that unfortunately, neither the importer nor any other importer of oatmeal cereal were associated with this exercise and due to this factor alone a wrong, incorrect and illegal valuation has been determined.
DG Tanveer Ahmed in his order stated, “I have examined the case record as well as verbal and written arguments put forth by the petitioner and the respondent department. Akhtar Ali Naeem Advocate appeared on June 27, 2016. He said that price of oatmeal was determined at higher side, as the prices were determined at Serial No. 11 for “cereal foods (other brands) of Malaysia and Indonesia origins at $2.15/Kg”.
The applicant stated that whole sale price is Rs 245/kg whereas they are importing at $1.59/kg. The defence counsel said that he is concerned only with the whole sale price which is Rs 245/kg. He was asked as to why price should not be increased to Rs 280/400 grams, but the defence counsel requested that their value may be determined separately and it may not be included in other category and he said that he does not have any Sale contract.
The respondent department submitted that the valuation ruling was correctly and lawfully issued after giving hearing opportunity to all the stakeholders / importers. All the participants were given their input on their respective brand. Fresh market survey was conducted and customs values were worked out to know the correctness of the transaction value.
Keeping in view of the above, the DG inferred that customs values have been determined on reasonable and Sound basis after giving due opportunity to the importers.
