KARACHI: The Directorate General of Customs Valuation has revised the customs value of Potato Frozen French Fries Valuation Ruling No 1164/2017 under Section 25-A of the Customs Act, 1969.According to details.
Customs Values of various types of Potato Frozen French Fries from different origins were determined vide Valuation Ruling No. 976/2016 dated 24.11.2016 Some importers filed applications before the Director Valuation. Hence an exercise was initiated by this Directorate General to determine the customs values afresh.
A meeting was scheduled on 19-05-2017 with stakeholders and importers of subject goods. All stakeholders were requested to submit invoices of imports during last three months showing factual value.
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 differences in price (excluding duty and taxes) to substantiate that the benefit of difference in price is passed on to the local buyers.
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 (self rent, marketing expenses and refrigeration cost shifting from place to place, breakage, expiry,) etc. are incurred thus increasing their retail price. The importer contended that their declarations were correct and their value added plain French fries were being declared at values higher than those determined in the Valuation Ruling. The view point of all stakeholders was considered before arriving at customs values of Potato Frozen French Fries.
Valuation methods provided in Section 25 of the Customs Act, 1969 were duly followed and applied sequentially to address the valuation issue at hand. Transaction value method provided in Sub-Section (1) of Section 25 was found inapplicable as the requisite information was not available as per law.
