KARACHI: The Directorate General of Customs Valuation has revised the customs value of peanut butter through Valuation Ruling No 1016/2016 under Section 25A of the Customs Act, 1969.
According to details, Directorate General had earlier circulated the reference values vide valuation database letter 39 issued on August 29, 2016. However, some importers approached this Directorate General and requested to issue valuation ruling for subject goods, pointing out various issues in uniform applicability etc. of the reference values. Therefore, this Directorate General initiated an exercise for determination of customs values of peanut butter.
All the stakeholders strongly contended and requested that the said valuation database may be reviewed in the light of prevailing international and local market prices. The different importers viewed that the actual prices of peanut butter are lower than that determined valuation vide VDB letter No. 39.
Further, to determine the veracity of their stance, the stakeholders insisted to conduct fresh market surveys from local market for determination of customs values of peanut butter.
It was also highlighted that the subject goods are perishable items and therefore have got limited shelf life, consequently, near the expiry dates, these perishable items are sold on sale and discounted prices. It was further contended by the traders that since the subject goods are mainly being sold on super and general stores, therefore, a lot more expenses (shelf rent, marketing expenses, refrigeration cost etc.) are contributed at retail level which cannot be arranged without adding extra value to the subject goods. The importers contended that all these may also be considered in fixing value of subject goods.
Prices are also verified on the basis of location of market in the city and date of expiry of the product in question.
