KARACHI: Director General Customs Valuation Syed Tanveer Ahmed issued Order in Revision No. 291/2017 under section 25-D of the Customs Act, 1969 against Valuation Ruling No.937/2016 dated 26-09-2016. The revision petition was filed by M/s Nimir Chemicals Pakistan Limited & Others.
According to details, the petitioner said that the fixation of unrealistic ITP read with prevailing custom duty at 21% (20% custom duty plus 1% additional custom duty) may be giving undue benefit to few manufacturing concern helping them to earn huge profit margins by marketing their finished goods at considerable high price level but on the other side it is inflecting serious financial injuries to the end users who believe in fair play and whom cost of production has risen extraordinary.
Manufacturers are being unduly and unethically favored with a flat protective fortification of almost 55% (Custom duty 21% plus ITP differential 34%). Such discrimination is quite frustrating for the end users who find it extremely difficult to consume it and to earn any margin despite making heavy investment in their respective industries.
Director General Customs Valuation in his order stated that the hearing in this case was fixed on 22-12-2016 but no one appeared. Another opportunity of hearing was provide on 02-01-2017. Senior Manager Supply chain of M/s. Nimir Chemicals Asif Niaz Hussain appeared and stated that Glycerin is the raw material and used in manufacturing of resin and they are manufacturer of resin. They stated that present valuation ruling for glycerin is at US$ 720/MT C&F whereas in the international market the purified glycerin is at US$ 630/MT (FOB).
He stated that value of glycerin is depends on its grade and following are the grades which are more common of imports.
If insurance and freight is added than it comes to US$ 650/MT whereas in the valuation ruling No.937/2016, dated 26-09-2016 the value is determined at US$ 720/MT which is on higher side.
They further added that M/s Nimir Industrial Chemicals and Sufi Chemicals are local manufacturer of glycerin from palm sterin. They manufacture Stearic Acid and Soap Noodles and glycerin is the bye-product of the industrial process.
The departmental representative stated that the value was determined in the light of PRAL’s data and data available on the international websites. He further stated that being industrial raw material market inquiry was not possible. The manufacturers of glycerin were also consulted. They provided ICIS (Scan) prices which are in the range of $650 – 670/MT FOB. The manufacturers were of the view that if element of freight and other charges are added it comes to around $ 700/MT.
The manufacturer’s data and international prices were seen. The value of glycerin is therefore fixed at USS 695/MT.
