ISLAMABAD: The Directorate General of Customs Valuation, Karachi, for the first time fixed the values of the wrist watches (low-end brands) from China to control evasion of duties and taxes at the import stage.
In this connection, the Federal Board of Revenue (FBR) Directorate has issued valuation rulings on Thursday.
The import values of wrist watches have been fixed within the range of $1.50 per piece to $6.6 per piece.
The said values are not applicable on known brands such as Casio, Citizen, Roamer, Alba, Seiko, Omax, Onyx, Westar, FavourLuba, Rolex, Rado, Calvin (CK) Tissot, Titan, Raymond Well, Swatch, Tag Heuer, Cartier, Baunce& Mercier, (B&M), Sonex, Longines, Forecer21, Prestige, etc.
According to the ruling, it was brought to the notice of the Directorate that the values of the wrist watches (low-end brands) from China are being declared to Customs at much lower values than their current international values in absence of Valuation Ruling in the field. Verification by this Directorate General reaffirmed this stance.
Keeping in view this prevailing price of the subject goods, an exercise for determination of the Customs values of wrist watches (low-end brands) in terms of under Section 25A of the Customs Act, 1969.
Finally, clearance data, raw material prices, international prices through internet were examined thoroughly and the information so gathered were utilized and analyzed for determination of Customs values of wrist watches (low-end brands), the directorate added.
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The directorate has also increased Customs values on the import of hand bags, shoulder bags, purses and clutches of artificial leather (low-end brands) from China. This Valuation Ruling is only for hand bags/shoulder bags /purses/clutches and wallets, made of artificial leather only (i.e. not genuine or composition leather). The clearance data, raw material prices, international prices through internet were examined thoroughly and the information so gathered were utilized and analyzed for determination of custom values of hand bags, shoulder bags, purses and clutches of artificial leather (low-end brands) under section 25(9) of the Customs Act, 1969.
As per a new valuation ruling, the directorate has enhanced Customs values on the import of playing cards (made of paper/plastic coating/plastic) from China, Taiwan, and USA.
Another valuation ruling has revised the Customs values on the import of Latex Rubber Threads from China, Malaysia, and Thailand.
Earlier, the Customs values of Latex Rubber Threads were determined under section 25A of the Customs Act, 1969 Customs values of vide Valuation Ruling in 2019. However, representations were received from importers and manufacturers for revision and rationalisation of the existing valuation ruling in the light of transitional values prevailing in the international market. Accordingly, an exercise was initiated in this Directorate General to determine Customs values of subject goods in terms of Section 25A of the Customs Act, 1969.
The directorate has also determined the Customs values on the import of Un-Plasticized PolyVinyl Chloride (UPVC) Pipes; Chlorinated Poly Vinyl Chloride(CPVC) pipes; High Density Polyethylene/ Polyethylene (HDPE/PE) Pipes Fittings and Pipe Fittings under section 25A of the Customs Act, 1969.
Earlier, the Customs values of pipes and pipe fittings were determined vide valuation ruling No 1259/2018. Representations for fresh determination of Customs Values were received in this Directorate General being more than four years old.
Furthermore, Quetta Chamber of Commerce and Sarhad Chamber of Commerce and Industry filed representations before the FBR.
A meeting was held in FBR headquarters which was chaired by the Chairman FBR and attended by Member (Customs-Policy), Director General Customs Valuation and other participants including the representatives of both the chambers.
Keeping in view difference between freight from land and sea routes, quality of goods and other socio-economic factors, the Board forwarded a record note. In view of the foregoing, an exercise was undertaken by this Directorate General to determine afresh the Customs Values of subject goods in terms of Section 25A of the Customs Act, 1969.
The reduction of eight percent shall be admissible on a total of above value on account of freight charges, if goods are imported through land route, the new ruling added.
Copyright Business Recorder, 2022
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