KARACHI: The Directorate General of Customs Valuation has determined the customs values of liquefied petroleum gas (LPG) vide Valuation Ruling No. 704/2014 dated December 22, 2014.
The directorate had received a reference from different stakeholders, including a letter dated November 22, 2014 from the LPG Association of Pakistan. The letter was about the revision of the customs values of LPG.
Valuation methods given in Section 25 of the Customs Act 1969 were applied sequentially to determine the customs values of the LPG. The Transaction Value Method under Sub-Section (1) of the Act was found inapplicable because required information under the law was not available. Identical and Similar Goods valuation methods provided in Sub-Section (5) and (6) of Section 25 of the Act provided some reference values but due to wide variations in declarations the same could not be relied upon. In the sequential order, the directorate then resorted to conduct a market inquiry in terms of Sub-Section (7) of Section 25 of the Act. Sub-section (9) of Section 25 was, however, applied to arrive at assessable customs values.
Meetings were held with the stakeholders on December 3, 10 and 22, 2014 and written contentions forwarded by the stakeholders were scrutinised.
Finally it was determined that LPG shall be assessed for duty/taxes at the values mentioned below.
LPG from All origins except Iran having PCT Code 2710.1910 and Propose PCT for WeBOC of 2710.1910.1000 shall be assessed for duty/taxes at Customs Values (C&F) at Saudi Aramco Values on the 1st of every month in plus $50 per kg on account of freight and other charges. Saudi Aramco Values are made available on the first of every month on the following website: http://pasenergy.asn.au/reports-and-submissions/saudi-aramco-lpg-prices-per-metric-tonne-mt/.
LPG Iran origin having PCT Code 2710.1910 and Propose PCT for WeBOC of 2710.1910.1100 shall be assessed for duty/taxes at Customs Values (C&F) at 10 percent less than the total of the above value.
In cases where the declared/transaction values are higher than the customs values determined in this ruling, the assessing officers shall apply those values in terms of Sub-Section (1) of Section 25 of the Customs Act. And in cases of consignments imported by air, the assessing officer shall take into account the differential between air freight and sea freight while applying the customs values determined in this ruling.
