KARACHI: The Directorate General of Customs Valuation has revised the customs value of Natural and Alkalized Cocoa Powder (H.S. Code 1805.0000) vide Valuation Ruling No 1228/2017 under Section 25A of the Customs Act, 1969.
Earlier, the customs values of Natural and Alkalized Cocoa Powder were determined vide Valuation Ruling No. 619/2013 dated 10-12-20 13. There were several representations from commercial importers as well as from Pakistan Biscuit and Confectionary Manufacturers Association wherein they claimed that value of the subject item needs to be realigned with international values which have considerably gone down over the years.
They requested to determine the applicable customs values afresh in accordance with the trend of values in the international markets, therefore, this Directorate General initiated an exercise for determination of the Customs Values of Natural and Alkalized Cocoa Powder in terms of Section 25-A of the Customs Act, 1969.
Stakeholders’ participation in determination of Customs values: A number of meetings with stakeholders including importers, representatives from Pakistan Biscuit & Confectionary Manufacturers Association and representatives from field formations were held at this Directorate General, culminating in a final meeting held on 16.11.2017 to discuss the current international prices of the subject goods.AII the stakeholders requested that the existing valuation ruling may be reviewed in the light of prevailing international market prices. The view point of all participants was heard in detail and considered to arrive at Customs values of the Natural and Alkalized Cocoa Powder.
Method adopted to determine Customs values: Valuation methods given in Section 25 of the Customs Act, 1969 were followed. Transaction Value Method provided in Section 25(1) was found inapplicable owing to wide variations in the values being declared to the Customs. Identical/Similar Goods Value Methods provided in Section 25(5) & (6) were examined for applicability to the valuation issue in the instant case which provided some reference values of the subject goods but the same could not be exclusively relied on due to wide variation in declared values of subject goods. Thereafter, market enquiries as envisaged under section 25(7) of the Customs Act,
1969, was conducted. All the information so gathered was evaluated and analyzed for the purpose of determination of customs values. Consequently, the Customs values of Natural and Alkalized Cocoa Powder have been determined under Section 25(7) of the Customs Act, 1969.
