The Directorate-General of Customs Valuation, Karachi, has revised the assessment value of float glass/other glasses, CD-R (audio/video), DVD-R, dyes and tyres and tubes for accurate determination of customs duty.
In this connection, the DG Valuation has issued different rulings to the collectors of customs for valuation of duty on the import of these items taking into account the revised assessable values.
The first ruling relates to valuation of CD-R and DVD-R under section 25A of the Customs Act, 1969 confirming large-scale group under-invoicing on the import of these items. The assessment value has been fixed at $0.10 per piece on the import of blank CDR in spindle from China, whereas value is $0.11 per piece on imports from other origins.
The value of Chinese blank DVD-R in spindle has been fixed at $0.16 per piece and value is $0.17 per piece on the import of this item from other countries. If goods are imported in single jewel box (plastic casing), $0.10 per piece would be added in the determined value.
A representation was received regarding under invoicing in the import of CD-R and DVD-R. It was contended that varied under-invoiced values are being applied in different clearance Collectorates. It was also highlighted that the goods are being imported in dozens, gross and great gross form, but are being cleared at cost of a single piece.
The directorate was requested to appropriate valuation of branded goods to save the revenue and protect local industry. Data of past clearances by different importers of the same goods was obtained which showed that there were different values at which these goods were being assessed.
Upon inquiry, the importers argued that the price of this product has drastically decreased due to introduction of latest compact discs in international market.
This argument was not found convincing because of the fact that the price of raw materials consumed or production of these discs has shown a consistent upward trend during the recent past.
The directorate said that the phenomenon of large-scale group under-invoicing in the import of these goods has been observed, and it was found that the data of evidential values could not be applied for assessment purposes. The valuation procedure ie "computed method" was applied to check under-invoicing at the time of import. It was found that the cost of raw materials is visibly higher than the declared value of goods being imported in the finished form, the ruling added.
The DG Valuation has issued a separate ruling for determination of customs value on the import of dyes from China. The new values of customs duty on the import of dyes ranges between $1.30 per kg and $2.80 per kg, taking into account revised values.
A sector study regarding valuation of imported 'dyes' was undertaken by the directorate and all the stakeholders, including Pakistan Chemicals and Dyes Merchants Association, and Pakistan Dyestuff Manufactures, Association were invited to the meetings.
During this exercise, the import data as well as proposals forwarded by the respective associations were taken into consideration. Independent market enquiries were also conducted in order to ascertain fair Customs Values under section 25(A) of the Customs Act.
Upon scrutiny of the import data of identical/ similar goods, it was observed that incomplete description of Sulphur and Direct Dyes were declared by the importers, since the colour index and percentages were not being clearly mentioned. Therefore, the import data of identical/similar goods could not be a highly reliable tool for valuation purposes under Section 25(5) & 75(i) ibid. Therefore, on the basis of local market enquiry, as well as proposals received from the Pakistan Chemicals and Dyes Merchants Association, the revised C&F values of sulphur and Direct Dyestuffs of Chinese origin have been determined under Customs Act.
Through another ruling, the Directorate has approved certain parameters for valuation of tyres/tubes. The values of tyres and tubes have been enhanced from 3 percent to 25 percent on the basis of findings gathered under section 25 (9) of the Customs Act; value of motorcycle tubes has been increased by 10 percent; value of tyres (other than tubeless tyres) imported without tubes may be assessed while subtracting the value of relevant size of tubes. However, no reduction is allowed in case of tubeless tyres.
Where the value is declared as "per set" and on the contrary only tyres have been imported, reduction of 8percent shall be allowed on the base value, which shall be treated as value inclusive of tyre & tube and the value of tyres with different "ply" shall be assessed by adding or subtracting from the determined value of 5percent per two ply rating.
The Directorate has also issued another ruling for the valuation of different kinds of glass imported from China, Middle/Far East. These included clear float glass, green float glass, Jaidth green glass, bronze float glass, blue float glass, coloured wire glass, grey float glass and other categories of glasses.
On the complaint of massive under-invoicing on the import of float glass, the DG valuation decided to investigate and examine the issue under section 25-A of the Customs Act.
The directorate had conducted independent local inquiry for working out costing on the basis of raw material used deductions of allowable discounts for profit and deduction of duty and taxes. Taking into account the exercise, the Directorate has issued the revised customs assessable value on the import of goods under Customs Act.
Comments
Comments are closed.