KARACHI: The Directorate General of Customs Valuation has revised the customs values of shade net (HDPE) Valuation Ruling No 1160/2017 under Section 25A of the Customs Act, 1969.
Local manufacturer of shade net (HDPE) M/s. Kolachee International vide their letter dated 28-03-2017 lodged a complaint of under invoicing regarding import of shade net (HDPE) H.S code 5608.1900 and requested for determination of fair values. This prompted the initiation of a detailed exercise for determination of values of the said item under section 25-A of Customs Act, 1969.
Meetings were held on 12-04-2017 & 02-05-2017 with stakeholders including importers and local manufacturer cum complainant. None of the importers participated in the subject meetings nor was any written reply submitted by them, while local manufacturer M/s. Kolachee International participated in the said meetings and forwarded working comprising manufacturing cost of shade net.
As per the working submitted by M/s Kolachee International, constituent raw materials used for the manufacturing of shade net are HDPE (91.50 %), UV (2.50 %) and master batch (6%). In this regard, the value of HDPE is taken from Scan Prices (March 16-22 2017), whereas applicable values of UV and master batch are taken from Valuation Ruling No.778/2015 dated 07.12.2015 and Valuation Ruling No. 786/2016 dated 01.01.2016 respectively.
Valuation methods provided in Section 25 of the Customs Act, 1969 were duly applied in their regular and sequential order to address the particular valuation issue at hand. The transaction value method as provided in Sub-Section (1) of Section 25, found in applicable in the light of the wide variety of manipulated invoices produced at import stage and as no invoices were reported to be found inside the containers (as per the international trading standards), thus, requisite information required under law was not available to arrive at the correct transaction value. Identical / similar goods value method provided vide Sub-Sections (5) & (6) of Section 25 ibid were examined for applicability to determine Customs value of subject goods, this data provided some references.
However, it was found that the same cannot be solely relied upon due to the absence of absolute demonstrable evidence of qualities, and quantities of commercial level 0 etc.
