Pakistan Customs has reduced Import Trade Price (ITP) of three major flat steel products up to $44 per ton to bring it at par with international market price. Sources told Business Recorder on Thursday that in exercise of powers conferred under section 25-A of the Customs Act 1969, Pakistan customs has determined new values of secondary quality Hot Rolled Coils (HRC) Cold Rolled Coils (CRC) and Galvanised Products (GP).
After a gap of over one year, the Directorate General of Customs Valuation has revised import values of HRC, CRC and GP as prices in the world market were on decline for last few months. With issuance of new ITP for three flat steel products, the evaluation of taxation would be on the new values, which will make the steel products cheaper in the domestic market. A formal notification to this effect has also been sent to importers, all concerned departments, customs collector appraisement, Model Customs Collectorate (MCC) and others at all sea and dry ports.
As per the notification, ITP of HRC has been reduced by $43 per ton and now its can be imported at $535 per ton. Previously it was being imported at $578 per ton. The new value of CRC and GP has been set at $550 and $580 per ton, respectively. Customs values of flat rolled iron and steel products - HRC, CRC and GP - of secondary quality imported from any region and hereinafter specified will be assessed to duty/taxes on these custom values.
Earlier, valuation ruling in terms of section 25-A of the Customs Act 1969 determining the value of HRC, CRC, and GP sheets (secondary quality) was issued on May 9, 2011 and since then prices of these goods were on decline in the international market, however, no changes were made in ITP.
According to notification issued by Customs Directorate General of Customs Valuation, earlier customs values of HRC, CRC and GP were determined more than a year ago through valuation ruling No 311, dated 09-05-2011. A re-determination of customs values of goods was needed to reflect the current price trend of these goods in the international markets as requested by Pakistan Iron and Steel Merchants Association (PISMA) and Karachi Iron and Steel Merchants Association (KISMA). This prompted an enquiry for the re-determination of custom values for these goods.
Valuation methods given in section 25 of the Customs Act, 1969 were examined to ascertain which methods were applicable to the valuation issue in hand in terms of section 25-A (1) of the Act. Transnational value method provided in section 25 (1) was found inapplicable because sufficient information with respect to adjustment to be made to the transactional value in term of section 25(2) was not available.
Three meetings of stakeholders were held and evidence of valuation furnished by the application of deductive value method as supported and validated by the average LMB values of prime quality HRC, CRC and GP furnished the relevant evidence to determine the following customs values for GRC, CRC and GP of secondary quality.
In case where declared values are more than the customs values determined in the ruling, the concerned assessing officer shall accept the declared values in term of section 25(1) of the customs Act 1969. According to notification, the customs Act 1969 provides efficacious alternate remedies against this ruling section 25-D provides that any person aggrieved of the ruling may file a revision petition within 30 days from the date of this ruling before the Director General Directorate General of Customs Valuation. An appeal against the decision in revision of the director general can be filed within 60 days of the decision before the customs appellant Tribunal under section 194-A (1) (e) of the Customs Act 1969.
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