KARACHI: The Directorate General of Customs Valuation has introduced new procedure for determination of customs values of tyres and tubes for calculating duty and taxes at the time of clearance.
The Directorate General in this regard issued Valuation Ruling No. 1236/2017 to revise the previous Valuation Ruling No. 985/2016 dated November 30, 2016 followed by correction dated February 06, 2017.
Stakeholders have requested the directorate to determine customs values in line with values prevalent currently in international market.
During the meeting of stakeholders and customs authorities, the importers and local manufacturers repeatedly agreed to come up with a joint proposal on a certain type and size of tyres but no such document was submitted till the issuance of this rling.
Their individual proposals had significant variance; importers have requested for further downward revision, whereas local manufacturers, have contended that tyres and tube prices have significantly appreciated owing to an increase of approximately then percent in the international market. They also contended that the values of certain type of tyres have gradually been decreased giving an undue advantage to importers.
The issue of ratio of value of tube imported separately from the tyre was also discussed threadbare; manufacturers of tubes wanted to increase the ratio from five to at least eight percent whereas importers contended that giving such an advantage to importers of tyres brought without tubes with the significant and would compromise government revenue on the one hand and increase the tube values disproportionally.
The directorate after hearing the arguments issued the valuation and procedure for customs values of tyres and tubes: Customs values of tyres and tubes shall be assessed to duty and taxes on the defined customs values, which forms integral part of this valuation ruling along with following conditions:
- If a radial tyre is imported which is not covered in the ruling and whose specifications are similar to normal tyre except for being radial, such tyres may be assessed at 25 percent higher than the normal tyre.
- Where only tyres are imported, other than tubeless, deduction of six percent shall be allowed on Ruling value. Conversely if tube of a tyre specified in the ruling is imported, the values shall be assessed at six percent of the tyre value. However, two and three wheeler’s tube shall be assessed at 15 percent of the value of the tyre if imported by separately.
iii. Value of tyres with different ply shall be assessed by adding or subtracting from the determined value at five percent per two ply rating.
- Discount of five percent is admissible for import of tyres and tubes through land route on C&F values determined by the directorate general.
