KARACHI: The Directorate General of Customs Valuation has revised the customs value of bicycle none geared/ geared (low end brands) vide Valuation Ruling No 1300/2018 under Section 25-A of the Customs Act, 1969.
It was brought to the notice of this Directorate General that similar category of low end brand bicycles are being cleared at different prices in different formations. To address the issue an exercise was initiated under Section 25A of the Customs Act, 1969 in accordance with the provisions of law. .The field formations were also requested to provide their valuable inputs on the matter. During the proceedings a reference No SI/Misc 128/2018-VII was received from Appraisement (West) Karachi indicating under-invoicing in bicycles with the request to issue a ruling.
Stakeholders’ participation in determination of Customs values: Numerous meetings with stakeholders including importers and representatives from field formations were scheduled on 25.01.2018, 06.03.2018, 29.03.20 I 8 and 12.04.2018, to discuss the current international prices of the subject goods. The importers / stakeholders were requested to submit the following documents before or during the course of stakeholders’ meetings to help in determination of Customs Values.
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 their contentions.
Method adopted to determine Customs Values: Valuation methods provided in Section 25 of the Customs Act, 1969 were duly applied in their regular sequential order to arrive at customs values of subject goods. The transaction value method as provided in Sub-Section (1) of Section 25 of the Customs Act, 1.969 was found inapplicable due to wide variation of values displayed in the import data. Hence requisite information required under law was not available to arrive at transaction values. Therefore, identical / similar goods value method as provided in Sub-Sections (5) & (6) of Section 25 ibid were examined for applicability to the valuation is in the instant case but due to wide variations in declarations this method could not he relied upon exclusively.
