KARACHI: The Directorate General of Customs Valuation has determined the customs value of shoe polish through Valuation Ruling No. 691/2014 No. Misc/05/2014-II dated September 25.
The exercise to determine the customs values of shoe polish was initiated after the case was remanded back by the director general, Customs Valuation vide Order in Revision No. 64/2014 dated 18.8.2014 against Valuation Ruling No. 663/2014 dated March 31.
According to details, the valuation methods provided in Section 25 of the Customs Act 1969 were applied sequentially to address the issue. The Transaction Value Method under Sub-section (1) of Section 25 of the Act was found inapplicable because required information under the law was not available. Identical and Similar Goods valuation methods provided in Sub-Sections (5) and (6) of Section 25 of the Act provided some reference values. However, due to wide variations and suppressed declarations the same could not be relied upon. The directorate then resorted to conduct a market inquiry. Consequently, deductive value method under Sub-Section (7) of Section 25 was applied to arrive at the assessable customs value of shoe polish.
A number of meetings with different stakeholders were held and finally formal meetings inviting all types of stakeholders were convened on September 3 and September 17.
Finally, the directorate general determined that shoe polish in tin as well as in liquid form shall be assed to duty/taxes on the Customs values as given below.
The customs value (C&F) of China-origin shoe polish in tin pack having PCT Heading 3405.1010 and proposed PCT for WeBOC 3405.1010.1000 is fixed at $0.90 per kg.
The customs value (C&F) of Turkey-origin polish in tin pack having PCT Heading 3405.1010 and proposed PCT for WeBOC 3405.1010.1100 is fixed at $1 per kg.
The customs value (C&F) of shoe polish in tin pack from other origins having PCT Heading 3405.1010 and proposed PCT for WeBOC 3405.1010.1200 is fixed at $1.10 per kg.
Similarly, shoe polish in liquid form China-origin having PCT Heading 3405.1010 and proposed PCT for WeBOC 3405.1010.1300 shall be assessed to duty/taxes on the customs value (C&F) at $1.20 per kg. The customs value (C&F) of Turkey-origin shoe polish in liquid form having PCT Heading 3405.1010 and proposed PCT for WeBOC 3405.1010.1400 is fixed at $1.30 per kg. The customs value (C&F) of shoe polish in liquid from other origins having PCT Heading 3405.1010 and proposed PCT for WeBOC 3405.1010.1500 is fixed at $1.40 per kg.
“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, 1969. 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.”
