KARACHI: The Directorate General of Customs Valuation revised the customs value of imported pop-corn through Valuation Ruling No 1107/2017 under Section 25A of the Customs Act, 1969.
According to details, the Directorate General earlier conducted an audit of clearance values of subject goods and during the course of perusal of import clearance data, it was observed that imported pop-corn were being assessed at lower values compared to the international selling prices and local market prices. As a stop-gap arrangement and to sensitize the clearance Collectorates, the Directorate General issued database values vide VDB letter 58 dated 20-10-2016 of imported pop-corn.
Thereafter, as per policy in vogue, Valuation Database Reference values are required to be converted into Valuation Ruling for uniform applicability across the country. In this context, the Directorate General, valuation initiated an exercise for determination of customs values of imported pop-corn under section 25A of Customs Act, 1969.
Meetings for determination of customs values of pop corn were held with stakeholders held on 02-03-2017 & 15-03-2017 which were duly attended by stakeholders. Importers strongly contended and requested that the said Valuation Data Base values may be reviewed downwards.
The importers, were of the view that actual prices of imported pop corn were lower than that determined vide VDB letter No. 58 and that their costs of selling have not been correctly accounted for.
Further, to determine veracity of their stance, the stakeholders insisted that a fresh market surveys be conducted from local market for determination of customs values of imported pop-corn and that their extra selling costs like allied expenses in shape of logistics and handling (due to perishable nature of goods) may be duly accounted for.
Furthermore, due to limited shelf life of the subject goods, near expiry dates these perishable items are sold on sale and discounted prices, hence adding to their cost of selling. It was further contended by the traders that since the subject goods are mainly being sold on super and retail markets, therefore, a lot more expenses (shelf rent, marketing expenses etc.) are contributed at retail level which cannot be managed without taking extra profit margins.
The importers contended that all these factors may also be considered in fixing value of subject goods.
