KARACHI: The Directorate General of Customs Valuation has revised the customs values of artificial flowers and material through Valuation Ruling No: 1271/2018 under Section 25A of the Customs Act-1969.
The customs values of artificial flowers were notified vide Valuation Ruling No.749/2015 on June 15, 2015. Since the valuation ruling was more than two years old and it was brought to the notice of the Directorate General that a large number of consignments of the materials of artificial flowers comprising leaves, stems, flowers etc were being imported and the same were being assessed at lower values. Since a reference was also received from MCC Appraisement (West) regarding valuation of the materials of artificial flowers, an exercise was initiated to determine the customs values of artificial flowers and materials thereof afresh under Section 25A of the Customs Act, 1969.
Meetings with stakeholders were held on February 14, 2018 and February 28, 2018 in the Directorate General of Valuation, Custom House, and Karachi. The importers were requested to submit import invoices of the last three months, showing factual values as well as the 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 values of supplies (excluding duty and taxes) to substantiate their contentions. The representatives of FPCC&I and Customs field formations attended the same.
However, despite lapse of considerable time and two meeting notices, neither any importer appeared in the meeting nor any documents were submitted in this regard.
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 the requisite 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 the declarations, the same could not be relied upon exclusively. In the sequential order this office conducted market inquiries in terms of Sub-Section (7) of Section 25 of the Customs Act, 1969.
