KARACHI: The Directorate General of Customs Valuation has revised the customs values of hand tools (low end brands) made of iron and steel vide Valuation Ruling No 1200/2017 under Section 25A of the Customs Act, 1969.
The customs values of hand tools (low end brands) made of iron and steel were earlier determined vide Valuation Ruling No.367/2011, dated 12-08-2011. It was brought to the notice of this Directorate General that selling prices of hand tools have escalated internationally and since existing Valuation Ruling was more than five years old, therefore this Directorate General initiated an exercise for re-determination of the custom values of the subject goods to reflect the current prices in international markets.
Meetings were fixed in Karachi, however on the request of importers meetings were held with stakeholders at Lahore on 31-10-2016 and 03.08.2017. All the participants were requested to submit 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 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 difference in price (excluding duty and taxes) to substantiate that the benefit of difference in price is passed on to the local buyers.
During meetings, importers argued that raw material i.e. steel prices of hand tools have decreased internationally therefore the prices of hand tools may be reduced. However, they were confronted with the counter argument that imported hand tools are made of different raw material-ratios and their prices vary depending upon their type and ratio of raw materials and usage / purpose. It was informed that the last ruling was issued in year 2011.
