KARACHI: The Directorate General of Customs Valuation Department has directed the Valuation director to issue fresh ruling after consideration of the importers’ contention. This direction was issued while hearing a revision petition filed by M/s L’Oreal Pakistan (Private) Limited against the VR No 814/2016 dated making Karachi Customs Valuation director as respondent.
The revision petition was filed on the following grounds as reproduced below:
“Being aggrieved and dissatisfied with the ruling no 814 of 2016, the petitioner prefers this revision petition under Section 25-D of the Customs Act, 1969 before this honorable authority on the facts that the petitioner is a private limited company incorporated in Pakistan under the Companies Ordinance, 1984 and a subsidiary of the L’Oreal Group, which is an internationally recognised name in the field of cosmetics, hair care products, toiletries continue to develop new products in the same field time to time.”
The petitioner further stated that “the petitioner scrupulously discharges its liabilities under the various laws and has contributed huge sums to national exchequer by way of inter alia, diligent payment of duties and taxes. The petitioner in due course of its business under takes imports from various countries around the world including USA, France, India many others of various toiletries.”
It further stated that “the respondent director while considering whether or not to revise the values of shampoos contained in the previous Valuation Ruling No 589 of 2013, failed to take into account the dictates of section 25-A of the Customs Act 1969 and while causing immense prejudice and harm to the petitioner, the respondent director without any application of mind and in fashion patently contrary to the law issued the impugned ruling without any determination of the values and decided to determine the value of the product under sub-section (7) of section 25 of the Customs Act 1969.”
It is pertinent to note at the outset that the respondent has, at paragraph 4 of the impugned ruling rejected most of the methods of valuation enshrined in section 25 of the Customs Act 1969.
In the order, the Valuation DG stated that the record of the case has been examined in the light of written and oral submission put forward by the learned advocate along with petitioners.
The order further elaborated that “In this case customs values of toiletries/shampoos were determined with the name of L’Oreal Company instead of its brands. L’Oreal Company is importing different products with different brands names for example some shampoos bearing different brand names have been imported by L’Oreal Company which they claim to fall in different categories.
Their contention is that they have been categorized in ‘A’ category as importer and company whereas some of their brands falls in lower category. Some brands are imported from UK on higher side whereas same brands from India and China are valued on lower side. Their transaction value may be accepted and deleted from valuation ruling as per past practice.
They have grievances that some of our competitors have been placed in lower categories instead of their higher category e.g. 1, 3, 5, 6, 7, 8 & 9 falls in ‘A’ category and Himalya Shampoo (Anti-Dandruff Dry Hair 200ml) and Dabur Vatika shampoo (hair fall control 200ml) 2 & 4 falls in ‘B’ category. Some brands have been mentioned in the valuation ruling like Pentene, Head and Shoulder etc.”
While issuing order, the DG said that their contention to fix values on the basis of brands was reasonable. Therefore, the Customs Valuation director was directed to issue fresh ruling after consideration of the importers contention.
