KARACHI: The Directorate General of Customs Valuation has revised the customs value of Computer, Trolley and Multimedia Speakers vide Valuation Ruling No 1342/2018 under Section 25-A of the Customs Act, 1969.
The Customs values of computer, trolley and multimedia speakers were determined under Section 25-A of the Customs Act, 1969 vide Valuation Ruling No. 970/2016 dated 16.11.2016. A reference from Customs Appraisement-West, Karachi was received regarding re-determination of customs values of trolley speakers of Chinese origin. The Valuation Ruling required revision in the line of prevailing price in the international market. Therefore an exercise to determine customs values of computer, trolley and multimedia speakers was initiated afresh in terms of section 25-A of the Customs Act, 1969 was initiated.
A number of meetings were held with different stakeholders including importers, officers from clearance Collectorates and representatives from trade bodies. All stakeholders were requested to submit the following documents before or during the course of stakeholders’ meetings: Invoices of imports during last three months showing factual value.
Websites, names and e-mail addresses of known foreign manufacturers of the item in question through whicfi 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.
During the course of meetings, the importers were of the view that the values of computer, trolley and multimedia speakers have considerably reduced in the international market as compared to the values determined in the existing Valuation Ruling. Importers requested that market inquiry may be conducted from the local market while keeping in view that local selling price include advertising cost, rise in pricing due to slow moving items and warranty charges on some models of speakers. However, importers did not submit import invoice, sales tax invoices, literature, representative samples, evidences and other relevant requisite documents in support of their contentions.
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 provided by the importers. 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.
