KARACHI: Importers and dealers of motorcycle spare parts have said that revised Valuation Ruling has failed to redress their grievances and concerns.
Talking to Customs Today, the importers and dealers said that the Valuation Ruling 686/2014 dated September 15 was a mismatch of reduction and increase in the Customs values of the said motorcycle spare parts imports. They cited various examples like the Customs Value (C&F) on Oil Through is fixed at US$ 14.00 per kilogram depicting US$ 1.16 increase while the Customs values of Cylinder Head Cover (Front & Rear) is fixed at US$ 5.85 per kilogram depicting a reduction of just one US cent. Similarly, the Customs value for Insulator Carburetor is determined at US$ 4.47 per kilogram depicting an increase of 2 US cents.
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They, however, expressed relief at the US$ 0.28 reduction in the Customs value of one of the top selling motorcycle replacement spare part- the spark plug. The Customs of the non-genuine spark plug China origin is fixed at US$ 0.12 compared to US$ 0.40 vide the Valuation Ruling 664/2014 dated 31.3.2014. The Customs value of the OEM spark plug China origin is also been reduced by half to US$ 0.50 per piece compared to US$ 1.00 previously.
All Pakistan Motorcycle Spare Parts Importers & Dealers Association (MSPIDA) as well as the Association of Pakistan Motorcycle Assemblers (APMA) have long been stressing for fair determination of Customs values on motorcycle spare parts. The MSPIDA argues that since the replacement/non genuine motorcycle parts were of lower quality and thus lower C&F value than the OEM and genuine parts, their customs values should be determined separately.
On the other hand, the APMA, which represents assemblers that turn China origin Completely Knocked Down units into finished motorcycle has been emphasizing for single values for both the OEM brands/ genuine parts and commercial brands/ non genuine motorcycle spare parts. Similarly, Pakistan Automotive Manufacturers Association (PAMA) has been stressing that many motorcycle parts are usually being assessed at values below raw material cost which in turn is benefiting the commercial importers by diverting Chinese OEM brands to them.
