KARACHI: The Directorate General of Customs Valuation has revised the customs value tropical multi system/ chiller type / ductless air conditioners vide Valuation Ruling No 1178/2017 under Section 25A of the Customs Act, 1969.
According to details customs values of air conditioners were determined, under Section 25A of the Customs Act 1969, vide Valuation Ruling No.1053/2017, dated 23-02-2017. Several importers filed revision petitions under section 25-D of the Customs Act, 1969 before the Director General of Customs Valuation.
The Director General directed vide Order in Revision No. 343/2017 dated 24-05-2017 that Customs values for Window type and tropical multi systems/ductless air conditioners be re-determined and notified within three weeks of the issuance of the Revision Order.
Therefore, this Directorate General initiated an exercise for determination of customs values of all types of tropical multi system/ ductless/chiller type air conditioners.
Meeting with stakeholders was held on 06.06.2017. Importers had been requested to furnish the following documents before or during the course of meeting. Websites, names and E-mail addresses of known foreign manufacturers of the item in question through which the actual current value can be ascertained. Copies of contracts made / LCs opened during the last three months showing the value of item in question. Copies of sales tax Invoices issued during last four months showing the difference in price (excluding duty and taxes) to substantiate that the benefit of difference in price is passed on to the local buyers.
During the revision proceeding and during the course of the meeting. The stakeholders agitated that Values determined vide the Valuation Ruling No.1053/2017, dated 23-02-2017 were much higher than the actual values. They were shown quotations taken by CHI 1;11 department from the market. At this they pointed out that the prices taken by the ailment to work back values of Tropical Multi System/ Ductless/ Chiller Type Air conditioners included installation costs. They also claimed that installation cost ranged from a minimum of 40% to 60% of the total cost of the air conditioners. They also stated that the value of MPS air conditioners was not higher than split type air conditioners. They presented clearance data wherein they were clearing goods at much lower values (13$/KW) before the issuance of Valuation Ruling No.1053/2017 dated 23-02-2017.
