Sudden increase in value: over 1,000 containers of cosmetics, toiletry items stuck at dry ports

Over 1000 containers loaded with cosmetics and toiletry items were stuck at different dry ports of the country due to unjustified increase in their value by the Customs Valuation Department. This caused billion of rupee loss to the importers as well as to the Federal Board of Revenue because importers were unable to clear their consignments at higher valuation basis.
This was alleged by the President All Pakistan Cosmetics and Toiletry Importers Association Sheikh Wajid Ali, while addressing a press conference at Lahore Press Club here on Wednesday. He said the Customs Valuation Department suddenly increased the value of the imported cosmetics products resulting a raise in custom duty with the same ratio. "This would force us to go back on smuggling rather than using proper channel", he said. He said that custom duty was imposed on a product after determination of its value and this evaluation was usually determined after a period of three years.
He said in 2007 the worth of cosmetic products was raised by 10 percent, and in April 2010, 10 to 15 percent raise was approved with the consultations of the traders and importers bodies as per rules. However, he said again in September 2010 the Customs Valuation Department raised the value of imported cosmetics in a period of five months and that was done without consultation of stakeholders.
According to documents provided by them in the press conference the Customs Valuation Department has increased the value of imported perfumes and Eau De Toilet of 100ML by 300 percent, body lotion of 100 ml by 815 percent, face cream of 200GM by 360 percent, shampoo of 200ML by 125 percent, conditioner of 200ML by 95 percent, hair spray by 50 percent, hair gel 40 percent, after shave by 285 percent, shaving foam by 200 percent, deodorant by 2350 percent etc. He said importers usually pay up to Rs 4 million custom duty on one container but after this huge increase in value they have to pay up to Rs 25 million. And in some cases this duty would amount to Rs 80 million on one container's goods, he added.