KARACHI: The Directorate General of Customs Valuation has revised the customs values of stainless steel pipes (welded and seamless)/fittings (joints) Valuation Ruling No 1155/2017 under Section 25A of the Customs Act, 1969.
According to details, currently there is no Valuation ruling of subject items in-field. The Customs clearance data revealed that stainless steel pipes (welded and seamless) were being declared at low values when compared to local and international selling prices. Furthermore, a representation was received from MCC Appraisement (West) vide No.S1/Misc/194/2016-V dated 26-01-2017 whereby proposed formulas for deriving at values of subject goods where shared with the Directorate General.
The Collectorate had constituted a specialized departmental committee to examined various aspects affecting the values of the subject goods and the same were considered while determination of value under Section 25A of Customs Act, 1969. Directorate General Valuation examined the matter thoroughly in the light of above proposals, PRAL data, LMB prices, local market survey as well as information form online international sources and consultation with stakeholders for determining the subject values under Section 25A of Customs Act, 1969, to ensure uniform assessment of subject goods across the country.
The manufacturing/conversion cost to convert stainless steel sheets of 300 series (available in LMB), to stainless steel sheets of 200 series (not available in LMB), the Collectorate had proposed a deduction of 40% from value of sheets of 300 series, however, this Directorate General has worked-out this conversion cost to be 37%. Furthermore, the Collectorate proposals regarding conversion cost from Stainless Steel Sheets to Stainless Steel pipe joints and fittings was US$ 500 per metric ton, however, the same has been determined to be not less than US$ 600 per metric ton keeping in view the extra working for manufacturing of joints and in light of the local and international selling prices of Stainless Steel Fitting and Joints.
Meetings with the stakeholders and representatives of MCC Appraisement (West), Karachi were scheduled on 21-02-2017 and 02-03-2017. Importers 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 and 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.
