ISLAMABAD: The Customs collectors at Model Customs Collectorates (MCCs) have adopted new customs value for accurate assessment of customs duty on the import of non-prohibited bore arms and ammunition from China, in light of the recommendations made by the Supreme Court commission.
According to details, 9mm pistols from China are being assessed at the customs value of $120 per piece; 30 bore calibre (pistol) of Chinese origin $70 per piece and ammunition/cartridges for pistols 9mm and 30 bore are being evaluated at $0.058 per piece.
It is to be noted that the Customs Collectors are following the valuation recently determined in exercise of the powers under Section 25-A of the Customs Act, 1969 Customs values of Arms & Ammunition.
The new value has been determined in light of the findings a probe conducted by a Supreme Court commission into smuggling of arms and ammunition. The commission observed that the imported arms and ammunition of Chinese origin is being assessed for customs duty and other taxes on the basis of values ascertained almost 15 years ago.
In this backdrop, the Model Customs Collectorate Appraisement (East) and Model Customs Collectorate Appraisement (West) approached the Directorate General of Customs Valuation Karachi to determine new Customs values for Chinese origin 9mm and 30 bore pistols and their ammunition. The Federal Board of Revenue also directed the Directorate General to determine the Customs values of Chinese origin arms and ammunition. Accordingly, exercise to determine the Customs values of the aforesaid goods was conducted in terms of Section 25-A of the Customs Act, 1969.
The valuation methods given in Section 25 of the Customs Act, 1969 were followed. Transaction value method provided in Sub-Section (1) of Section 25 ibid was found inapplicable because the requisite information to determine the Customs values as per law was not available. Identical/similar goods value methods provided in Sub-Sections (5) & (6) of Section 25 ibid were also not found applicable due 10 unreliable values. Market enquiry as envisaged under Sub-Section (7) of Section 25 of the Customs Act, 1969, was conducted and values so worked out were taken up for determination of customs value of the subject goods. Thus, deductive valuation method under Section 25(7) of the Customs Act, 1969, was applied to arrive at the customs values of arms and ammunition of Chinese origin consisting of pistols of 9mm and 30 bore calibres and their ammunition.
Similarly, all stakeholders including the representatives of Pakistan Arms & Ammunition Merchants & Manufacturer Association were also taken on board besides getting output from functionaries of clearance collectorates concerned in the process to determine a consensus new value.
The one-man commission in its fact-finding report has pointed out that no exercise could be conducted over the years to ascertain actual value of arms and ammunition being imported through the work back method of assessment by comparing the market prices of the frequently imported weapons. Moreover, in cases where the Customs assessed values exceed the values allowed in the import authorisations of the Ministry of Commerce, the information is not being shared with either the L/C opening bank or the Ministry of Commerce to adjust/account for the excess values at the time of issuance of next authorisation.
The commission also pointed at absence of punitive action against the importers/dealers exceeding authorised limits. As a result, importer opens the L/C for entire amount shown in the authorisation each year and succeeds in bringing quantities of his liking without any fear of punitive action or reduction of value quota for the next import.
