ISLAMABAD: The Directorate General of Customs Valuation Karachi has fixed US $1.70 per kg as new Customs value on the import of PVC stabiliser for assessment of duties and taxes.
In this regard, the Federal Board of Revenue’s directorate has issued a new Customs valuation Ruling (1831 of 2023) on Wednesday.
Earlier, the Customs value of PVC stabiliser was determined under Section 25A of the Customs Act, 1969 vide Valuation Ruling of 2021. However, different stakeholders requested to re-determine Customs values afresh in line with values prevalent in the international market. Therefore, an exercise has been undertaken by this Directorate to determine the same.
The importers contended that the values are higher in the Valuation Ruling and the same need to be revised downwards at prevailing international prices. They also submitted proposals in this regard, they said that they import PVC stabiliser for use in pipe industry.
They further argued that the importers of China and Malaysia origin enjoy benefits of free trade agreement (FTA), while their companies pay duty of around US $700,000 per year.
Another company stated that the local cost of production is unbearable due to high cost of raw material i.e. Lead Sulphate at around US $2600-2700 per MT. Korea has its own lead due to which the powdered form of PVC stabiliser is produced abundantly in that country. The current value of Korean PVC stabiliser is US $1500-1600 per MT.
Shipping cost is higher from Korea to Pakistan that of Turkey to Pakistan. Liquid form of PVC stabiliser, like powdered form, has a different manufacturing process from flakes form. It is costly and used in shoes. In addition to these proposals, 90 days clearance data has also been retrieved and the same has been scrutinised.
The available data/ information collected such as sales contracts, proforma invoices, and export GDs of the stakeholders was thoroughly scrutinised and freight value at the time of previous ruling and prevailing freight values have been examined which are drastically reduced, the directorate added.
Copyright Business Recorder, 2023
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