KARACHI: The Directorate General of Customs Valuation has determined the customs value of abrasive products from various origins vide Valuation Ruling No 698/2014 No Misc/19/2010-V dated November 6, 2014.
Customs values of abrasive products were determined vide Valuation Ruling No 547/2013dated April 19, 2013. The directorate undertook the exercise to re-determine the customs values of the goods after it was brought into its notice that the prices of abrasive products have appreciated and thus the earlier valuation ruling should be revisited to reflect the current price trend of the goods in the international markets.
The valuation methods provided in Section 25 of the Customs Act, 1969 were followed to ascertain which methods were applicable to the valuation issue on hand in terms of Section 25A (1) of the Act.
The Transaction value method provided in Section 25(1) of the Act provided some reference values but was found inapplicable because sufficient information under the law was not available. Identical/similar goods valuation methods as provided in Sub-Section (5) & (6) of Section 25 of the Act furnished unreliable values and were not found applicable. Computed Value Method as provided in Section 25(8) could not be applied for valuation of abrasive products as the cost of raw material and fabrication charges under clause (a) and amount of profit and general expenses under clause (b) of the Act, in the country of export could not be ascertained. Market survey under Deductive Value Method as prescribed in Sub-Section (7) of Section 25 of the Act was conducted which provided reference values. Consequently, Fall Back Method as envisaged under Section 25(9) was the methodology adopted to determine the Customs values of Abrasive products.
Meetings were held on May 21, 2014, June 11, 2014 and September 17 and relevant stakeholders participated in them to help determine the Customs values of Abrasive Products.
Finally, the Directorate General of Valuation determined the Customs values of abrasive products as follows.
China, Korea and Europe Origin Abrasive Fiber/Paper Disc having PCT Code 6805.1000 and 6805.3000 and & Proposed PCT for WeBOC of 6805.1000.1010, 6805.3000.1010, 6505.1000.1020, 6805.3000.1030, 6805.1000.1030 and 6805.3000.1030 shall be assessed for duty/taxes at customs values (C&F) at $4.62, $4.80 and $5.70 per kg respectively.
China, Korea and Europe origin Abrasive Fiber/Paper Roll having PCT Code 6805.1000 and 6805.3000 and Proposed PCT for WeBOC of 6805.1000.1040, 6805.3000.1040, 6505.1000.1050, 6805.3000.1050, 6805.1000.1060 and 6805.3000.1060 shall be assessed for duty/taxes at Customs Values (C&F) at $3.10, $3.50 and $3.80 per kg respectively.
China origin Abrasive Cloth Sheet having PCT Code 6805.1000 and Proposed PCT for WeBOC of 6805.1000.1070 shall be assessed for duty/taxes at Customs Values (C&F) at $ 1.70 per kg.
Similarly, China, Korea and Europe origin Abrasive Cloth Roll having PCT Code 6805.1000 and Proposed PCT for WeBOC of 6805.1000.1080, 6805.1000.1090 and 6805.1000.1100 shall be assessed for duty/taxes at Customs Values (C&F) at $3.10, $4 and $6.50 per kg respectively.
China origin Abrasive Latex Paper Sheet/Roll having PCT Code 6805.2000 and Proposed PCT for WeBOC of 6805.2000.1010 shall be assessed for duty/taxes at Customs Values (C&F) at $3.50 per kg.
And finally, China and Korea origin Abrasive Kraft Paper Sheet/Roll having PCT Code 6805.2000 and Proposed PCT for WeBOC of 6805.2000.1020 and 6805.2000.1030 shall be assessed for duty/taxes at Customs Values (C&F) at $1.50 and $1.70 per kg respectively.
In cases where the declared/transaction values are higher than the customs values determined in this Ruling, the assessing officers shall apply those values in terms of Sub-Section (1) of Section 25 of the Customs Act. And in cases of consignments imported by air, the assessing officer shall take into account the differential between air freight and sea freight while applying the Customs values determined in this Ruling. This Valuation Ruling supersedes Valuation Ruling No 547/2013 dated 19.4.2013.
