KARACHI: The Directorate General of Customs Valuation has revised the customs values of iron padlocks through Valuation Ruling No 1144/2017 under Section 25-A of the Customs Act, 1969.
According to details, the customs values of iron padlocks were determined vide Valuation Ruling No. 593/2013 dated 01-10-2013. An exercise to re-determine the Customs values of the said goods under Section 25-A of the Customs Act, 1969 was initiated to reflect their current international price trend.
Two meetings with all stakeholders were scheduled on 19-04-2017 & 02-05-2017. All the stakeholders were requested to submit invoices of imports during last three months showing factual values. They were also asked to give websites, names and e-mail addresses of known foreign manufacturers of the items in question through which the actual values could 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. The importers were of the view that values of padlocks determined in the earlier valuation ruling are on high rise as per prevailing international prices. Therefore, the values may be decreased. However, they had failed to file supporting documents to determine the customs values of the padlocks.
Valuation methods given in Section 25 of the Customs Act, 1969 were applied sequentially to address the valuation issue at hand. Transaction Value Method under sub-section (1) of Section 25 of the Act ibid was found inapplicable because required information under the law was not available, identical and similar goods valuation methods provided in sub-sections (5) and (6) of Section 25 of the Customs Act, 1969 provided some reference values but due to wide variations in declarations the same could not be relied upon exclusively.
In the sequential order this office to conducted market inquiries in terms of sub-section (7) of Section 25 of the Customs Act, 9. Input and feed back by the stakeholder during meetings was also considered.
