ISLAMABAD: Federal Board of Revenue has detected underinvoicing on the import of milk preparations for infant use from European Union and Far Eastern countries, causing revenue loss to national exchequer.
Sources said that it was brought to notice of Directorate General of Customs Valuation by field formations that milk preparations for infant use are being imported at under-invoiced values, causing loss of revenue. This prompted an exercise to determine the fair customs values for imported milk preparations for infant use.
The Valuation methods given in Section 25 of the Customs Act, 1969 were followed. The transaction value method under Sub-Section (1) of Section 25 ibid was found inapplicable because of non-availability of sufficient information. Identical/similar goods valuation methods provided in Sub-Sections (5) & (6) of Section 25 ibid furnished unreliable values. Deductive Value Method under Sub- Section (7) read with Sub-Section (9) of Section 25 of the Customs Act, 1969, was applied to arrive at the customs values. Meetings were held with the stakeholders including representatives of FPCCI & KCCI to obtain stakeholders views on valuation of milk preparations for infant.
In cases where declared/transaction values are higher than the customs value determined in this ruling, the assessing officers shall apply those values in terms of Sub-Section (1) of Section 25 of the Customs Act, 1969. In case 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 the ruling.
The value determined vide this ruling shall be the applicable customs value for assessment of subject imported goods until and unless it is rescinded or revised by the competent authority in terms of Sub-Section (1) or (3) of Section 25-A of the Customs Act, 1969.