KARACHI: :Directorate General of Customs Valuation, Karachi has revised customs values on the import of Electrolytic Tin Plate (ETP) and Tin Free Sheet (TFS) for assessment of duties and taxes.
In this connection, the directorate has issued a new valuation ruling. The customs value has been fixed at Rs1.75 per kg on the import of prime quality ETP and the value of the secondary quality ETP has been fixed at Rs1.75 per kg.
The customs value has been fixed at Rs1.82 per kg on the import of prime quality TFS and the value of the secondary quality TFS has been fixed at Rs1.55 per kg. The customs values of ETP and TFS were determined under Section 25A of the Customs Act, 1969 vide Valuation Ruling No756/2015, dated 01-8-2015 which was recalled subsequently.
Representation was received from private companies and Collectorate of Customs (Appraisement) Port Qasim, vide Letter No Group-V-680-2021-PQ/1101 dated 31-12-2021 that values of the ETP and the TFS have been increasing in the international market and the said ruling being more than six years old is not reflective of prevalent international price. Accordingly, an exercise, to determine the Customs values of subject goods was undertaken. Stakeholders’ participation in determination of Customs values: Meeting was held with stakeholders on 04-03-2022 to discuss the current international price of the subject goods.
The participants contended that the prices of the instant items in the international market have considerably increased. Deliberations were held in the Directorate and the points of view of the participants/stakeholders were heard at length. The data of import of last 90 days was also scrutinized.
Method adopted to determine Customs values: 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 because sufficient information with respect to adjustments to be made to the transactional value in terms of Section 25(2) was not available and hence the requisite information required under the law was not available to arrive at the correct transaction value. Identical/similar goods value methods provided in Sub-Sections (5) and (6) of Section 25 ibid were examined and considered for applicability to determine Customs value of subject goods.
The data provided some reference; 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 etc. In line with the statutory sequential order of Section 25, this office then conducted a market inquiry using Deductive Value Method under Sub-Section (7) of Section 25 of the Customs Act, 1969, however, it was found that market values also varied and could not be made the sole basis for determination of customs values. Valuation method provided vide Section 25 (8) of Customs Act 1969, could not be applied as the exact date of conversion cost of constituent materials and allied expenses, at country of export were are not available. Finally, the PRAL database, market information and international prices through Web, LME prices were examined thoroughly. Keeping all the factors in view and after carefully analyzing all the available information from different sources, therefore, Customs values of subject items were determined under Section 25(9) of the Customs Act, 1969.
