KARACHI: The Sindh High Court (SHC) issued notices to the customs officials directing them to file their respective para wise comments on a constitutional petition filed by M/s Prefect Craft (SMC-OVT) Ltd and M/s Max Comfort (SMC-Pvt) Ltd challenging valuation ruling no 1331/2018.
On 15 February 2021, during the hearing, counsel for the petitioner stated that petitioners have entered into contracts with various supplier for import of consignment of alloy carbon steel wire rods against letters of credits, whereas, the payment against same contracts are to be made through banking channels and electronic import forms (EIFs), as approved mode of payment by State Bank OF Pakistan.
He further argued that the international trade prices against the imported goods are weekly quoted under London Metal Bulletin, which are taken by the respondents at benchmark for assessment of import value and has also been taken under impugned valuation ruling no 1331/ 2018, however, petitioners are seriously aggrieved by impugned formulae under caption valuation ruling by addition of 5% (for low-carbon wire rod) and further addition of US$ 66/MT (for high-carbon wire rod), for which, no any cogent and plausible reasons have been given by the directorate of customs valuation Karachi.
Petitioners submitted that they are also aggrieved by the addition of freight charges at US$ 40/MT for ascertainment of the customs value, vide impugned valuation ruling, which is also unreasonable and unjustified, hence, un-acceptable under the law.
They argued that the prices of imported goods at the rate, as above, are inclusive of cost and freight CFR, terms, which means that the said purchase price already includes the freight charges, hence same is being charged by the respondents again, which is illegal, unlawful and tantamount, to double taxation, which is not permissible under the law by any stretch of imagination, hence, the same VR is not sustainable.
Citing Chairman FBR, Collector of Customs Appraisement East and West as respondents, petitioners pleaded the court to set aside impugned valuation ruling no 1331/ 2018 and direct them to release the consignments of the petitioners and also restrain them from taking any adverse action against the petitioners till final order in this petition.
